HOUSTON, July 27, 2017 /PRNewswire/ -- alliantgroup urges America's lawmakers to pass the Invent and Manufacture in America Act, a bipartisan tax bill that has been introduced in both the House and Senate. If signed into law, this legislation would deliver a much needed boost to the American economy by providing a tax cut for companies that conduct research and development in the U.S. and domestically manufacture products resulting from this R&D.
For decades, a vibrant manufacturing sector has served as one of the main engines of the U.S. economy. During the industry's peak in the 1960s, one out of every four Americans worked in manufacturing. Since 2000, however, the U.S. has lost more than five million manufacturing jobs and more than 70,000 manufacturing plants have closed or moved offshore.
In order to reverse this trend, U.S. Senators Chris Coons (D-DE) and Pat Roberts (R-KS), as well as U.S. Representatives Mike Kelly (R-PA) and Ron Kind (D-WI), have introduced legislation that would enhance the value of the Research and Development (R&D) Tax Credit. The proposed bill would increase the R&D Tax Credit by up to 25 percent for companies that perform the majority of their manufacturing operations in the U.S.
The broader purpose of the bill is to encourage the co-location of research and development activity with manufacturing operations. Multiple studies have shown that companies that co-locate their R&D efforts with their manufacturing facilities have experienced greater innovation, higher productivity and increased efficiency. According to numbers released by Senator Coons' office, companies are twice as productive in their R&D efforts when operations are co-located with a manufacturing facility.
"Many members of the Precision Machined Products Association (PMPA) invest heavily in R&D, and more importantly, they invest and manufacture here in the U.S., creating thousands of jobs across America," said Bernie Nagle, Executive Director of the Precision Machined Products Association, a trade association based in Ohio. "The Invent and Manufacture in America Act will encourage even more technology development and job creation here at home and I urge Congress to include this bill in their final tax reform package."
"Since I started this firm, I have seen first-hand how vital the R&D Tax Credit has been in bringing value back to our manufacturing clients and in ultimately helping these companies not only survive, but thrive against foreign competition," said alliantgroup CEO Dhaval Jadav. "If the Invent and Manufacture in America Act were to become law, it would once again make the manufacturing sector the engine of job-creation that is has historically been for our country. Considering what is at stake, I urge our elected officials to do right by our manufacturers and pass this vital piece of legislation."
alliantgroup's mission is one of education and awareness—our national tax consultancy exists to help U.S. businesses and their CPA advisors identify and properly claim all available federal and state tax incentives. To date, our firm has helped over 20,000 businesses claim more than $5 billion in tax credits and incentives. alliantgroup's headquarters is based in Houston, and the firm has offices in New York, Boston, Chicago, Indianapolis, Orlando, Irvine, Sacramento and Washington, D.C. For more information on alliantgroup, please visit us on LinkedIn, Facebook and Twitter.