U.S. Rep. Pat Tiberi (R-OH) introduced a bill that would stimulate job growth by clarifying Treasury Department regulations on the application of the domestic manufacturing deduction (DMD) in contract manufacturing agreements.
Currently, the Treasury Department’s regulations unevenly apply the DMD to companies that enter into contract manufacturing agreements.
Tiberi and U.S. Rep. Richard Neal (D-MA) introduced H.R. 1296 to clarify that the DMD applies to non-vertically integrated manufacturers that employ U.S. workers to encourage investment and job growth.
“As we work to rewrite our tax code in the Ways and Means Committee, a key priority is to ensure that we support our manufacturers’ ability to invest and make products here at home,” Tiberi said. “This bill clarifies congressional intent and levels the playing field for manufacturers, no matter how their domestic supply chain is structured. This is a common sense fix to a regulatory overreach that is needed to create good-paying American jobs in my own district and across the country.”
Neal added that the DMD encourages investments in the nation’s infrastructure, supports local communities, and helps create good-paying manufacturing jobs.
“Working with my colleague, Congressman Tiberi, on the Ways and Means Committee, we put together a bill that would help provide manufacturers a fair and level playing field so we can create even more products right here at home in America,” Neal said.