H.R. 2652: Bring Entrepreneurial Advancements To Consumers Here In North America Act

This bill, titled the "Bring Entrepreneurial Advancements To Consumers Here In North America Act," aims to modify the tax code to encourage manufacturers to relocate their operations to the United States. Here are its main provisions:

1. Tax Incentives for Relocating Manufacturing

The bill introduces tax benefits for companies that move their manufacturing operations from foreign countries to the United States. Specifically:

• Accelerated Depreciation: Nonresidential real property used by qualified manufacturers will be considered 20-year property for depreciation purposes, allowing these companies to recover the cost of their investments more quickly.
• Bonus Depreciation: Qualified manufacturers can apply bonus depreciation, which allows them to deduct a significant percentage of the cost of their property in the year it is placed in service.
• Gain Exclusion: If a manufacturer relocates to the U.S., any financial gain from selling property used in their foreign operations will not be taxed, which could further incentivize relocation.

2. Definitions and Conditions

To qualify for these incentives, manufacturers must:

• Be engaged in producing tangible personal property.
• Demonstrate that they are moving production from a foreign location to the U.S., resulting in an increase in production capacity domestically that is at least equal to what was reduced in the original country.

3. Permanent Full Expensing for Qualified Property

The bill proposes a permanent 100% expensing deduction for certain types of property placed in service after the legislation is enacted. This means that manufacturers can write off the entire cost of qualifying investments immediately rather than over several years.

4. Effective Dates

The provisions regarding accelerated depreciation and gain exclusion will apply to property and transactions occurring after the enactment of the bill. This immediate application is intended to quickly incentivize manufacturers to consider relocating.

Relevant Companies

None found.