The Bring Jobs Home Act introduced by Senator Debbie Stabenow, creates a special 20 percent tax credit for the moving expenses of companies who shift operations back to the U.S. from abroad.
The bill also prevents companies from deducting from their taxes the costs associated with shipping jobs overseas. Under current law, companies can deduct 100 percent of the cost of shipping equipment overseas, terminating leases, and other expenses associated with offshoring a business-meaning that taxpayers are on the hook for millions of dollars annually.
“Right now, some companies are undercutting hardworking Americans by sending valuable jobs out of the country,” McCaskill said. “We shouldn’t be rewarding them for doing it. Instead, let’s use some common sense, and reduce their incentive to outsource by ending tax breaks for companies that send jobs overseas, and rewarding companies that bring jobs back to the United States.”
A similar measure had bipartisan majority support in the Senate last year, but ultimately failed to advance after a Republican filibuster.