WASHINGTON — U.S. Representative Don Manzullo (R-IL) and several colleagues will introduce legislation next week to stimulate the economy by accelerating an existing tax incentive to help manufacturers create and keep jobs in America.
The American Jobs Creation and Economic Stimulus Act of 2008 would accelerate a domestic manufacturing tax deduction to give large and small manufacturers a larger tax break on the goods they produce in the U.S.
The deduction currently provides a 6 percent tax rate reduction on goods and services manufacturers produce in the United States. The reduction is scheduled to increase to 9 percent by 2010, but the bill would accelerate the phase-in to 9 percent retroactively to Jan. 1, 2008.
“By accelerating this tax relief, we will help our manufacturers survive these difficult times and give them an incentive to expand and create jobs in America more quickly. Furthermore, it will help our manufacturers keep jobs in America because the tax benefit is limited to goods produced in the United States,” Manzullo said. “This legislation will provide a significant stimulus to our economy and fits within the parameters outlined by the President today.”