Representatives Ro Khanna from California and Debbie Dingell from Michigan, both members of the Democratic Party, have introduced new legislation designed to stimulate domestic spending and bolster American small businesses. The bill, known as the Made in the USA Tax Credit Act, was unveiled during a tour of manufacturing sites in Ann Arbor, Michigan, and focuses on incentivizing consumers to buy products made in the United States.

This proposed bill aims to rejuvenate the American manufacturing sector by offering significant tax credits to individuals and couples who purchase American-made goods. Individuals can receive up to $2,500, and couples up to $5,000 in tax credits when they buy products that comply with the Made in the USA standards set by the Federal Trade Commission (FTC). These standards mandate that the products must be entirely or almost entirely produced within the U.S.

The bill specifically targets goods from small businesses, which are defined by the Small Business Administration as enterprises with fewer than 500 employees. It deliberately excludes certain categories such as luxury items, tobacco, firearms, and vehicles. The primary objective of the legislation is to make American products more accessible and affordable, while also promoting job growth and upholding the dignity of workers.