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A new feature on the Obama Administration’s website showcases the president’s "to-do" list of items for Congress to tackle before the summer recess, which includes a tax credit for companies moving jobs back to the U.S.

President Promotes Tax Credit for Repatriation of Jobs

  • 5/16/2012

President Promotes Tax Credit for Repatriation of Jobs

A new feature on the Obama Administration’s website showcases the president’s "to-do" list of items for Congress to tackle before the summer recess. "These five ideas will help create jobs and protect the middle class," David Plouffe, senior advisor to the president, reported in a press briefing.

President Obama previously outlined his to-do list on May 8 while speaking at the College of Nanoscale Science and Engineering in Albany, New York. The list contains several items he deems important to accelerate the economic recovery and create jobs. Included are the extension of several tax credits that help clean energy companies, a tax break for companies that add more workers or raise wages for existing employees, and a tax benefit to cover the moving expenses of companies that repatriate jobs to America.

"These are traditionally ideas that have had bipartisan support," the president said. "They won't have as big of an impact as rebuilding our infrastructure or helping states hire back teachers, but together, all of these ideas will do two things: They'll grow the economy faster and they'll create more jobs."

List items

As outlined by the president, the to-do list includes:

  • Rewarding American job creation, rather than outsourcing
  • Enabling easier mortgage refinancing for responsible homeowners
  • Extending 100 percent expensing and creating a new 10 percent income tax credit for small businesses with new hires or wage increases
  • Renewing the Production Tax Credit and expanding the 30 percent tax credit under Code Sec. 48C to promote domestic manufacturing and clean energy
  • Creating a Veteran Jobs Corps to aid veterans of Afghanistan and Iraq in finding employment in law enforcement, firefighting, and other community service professions

Outsourcing tax credit

The moving expenses tax credit item on the president’s agenda is part of the Bring Jobs Home Bill introduced in the House and Senate on May 8 by Rep. Bill Pascrell, D-N.J., and Sen. Debbie Stabenow, D-Mich. The bill proposes a tax credit for up to 20 percent of the costs U.S. companies incur to move jobs and business operations back to the United States from a foreign country.

The initiative would also eliminate several corporate tax loopholes, such as the availability of the deduction for business moving expenses for companies that move jobs to foreign countries.

"Passing the Bring Jobs Home Act will stop our tax code from providing corporate welfare by closing the loopholes that encourage outsourcing," said Pascrell in a statement. "Our ability to produce goods here at home is the key to America keeping its competitive edge in the world market."

"We need to be exporting our products, not our jobs," Stabenow added. "We need to be cutting taxes for companies that create jobs in America."

Other measures

Obama also mentioned in his May 8 speech that Congress should concentrate on resolving partisan issues and passing existing legislative measures to reapprove funding for the U.S. highway system, and to prevent the hike in direct federal student loan interest rates. He stressed to Congress the importance of passing the legislation before July 1, the date on which the student loan interest rate is scheduled to double. The current highway trust fund legislation is scheduled to expire on June 30.

"The good news is both parties say they want to make this happen," Obama said. "We've done this before. Congress just needs to work out the details."

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