Khanna and Dingell Introduce Made in the USA Tax Credit Act

Democratic Representatives Ro Khanna and Debbie Dingell have proposed a bill aimed at encouraging Americans to support small businesses in the United States.

The legislation, known as the Made in the USA Tax Credit Act, offers tax credits of up to $2,500 for individuals and $5,000 for couples who purchase products meeting the Federal Trade Commission’s Made in the USA standards. These standards require that a product be “all or virtually all” made in the U.S., as outlined on the FTC’s website.

The bill, highlighted by Newsweek, excludes luxury items, tobacco, firearms, and vehicles, in line with the Small Business Administration’s definition of a small business as having fewer than 500 employees.

Representative Dingell expressed pride in introducing the bill with Representative Khanna, emphasizing the importance of supporting family-owned small businesses and prioritizing American products.

The proposed legislation seeks to bolster American manufacturing and business, aiming to address the decline in domestic manufacturing and the rise in imports since 1998, which has resulted in the closure of over 70,000 factories. Dingell noted that the 12 million remaining manufacturing jobs typically offer above-average wages and are often unionized.

According to the bill’s provisions, individuals earning less than $125,000 with investment income under $20,000, and couples filing jointly with earnings below $250,000 and investment income under $40,000, are eligible for the tax credit. The maximum credit amount will be adjusted annually for inflation.

Additionally, the bill allocates funds for IRS outreach activities to educate consumers and businesses in underserved communities about the tax credit and eligible goods.

Introduced to the House Committee on Ways and Means, the bill must proceed through the House and the Senate, ultimately requiring presidential approval to become law.