The White House followed up the State of the Union address by releasing a fact sheet named “Blueprint for an America Built to Last” which highlights the administration's proposals for corporate tax reform and support for domestic manufacturing. The corporate tax reform is structured as a framework of ideas that:
- forces companies to pay a minimum tax for overseas profits;
- making research and development credit permanent; and
- simplifying the tax code.
The fact sheet also includes the following six specific proposals:
- Deny moving expense deductions to companies moving operations overseas and allow a new 20% credit for the expenses of moving operations back to the U.S.
- Revamp the existing domestic production activity deduction to be targeted towards manufacturers that create jobs in the U.S. and doubling the deduction for advanced manufacturing technologies from 9% to 18%.
- A new Manufacturing Communities Tax Credit for qualified investments that help finance projects in communities that have suffered a “major job loss event”.
- Extend the Advanced Energy Manufacturing Tax Credit for investments in clean energy manufacturing in the U.S.
- 100% expensing of investment in plants and equipment.
- Finally, as revenue raising measure, taxing companies which move to overseas intangible property created in the U.S.
To view the fact sheet click here.