H.R.2652 - Bring Entrepreneurial Advancements To Consumers Here In North America Act (119th Congress)
Summary
H.R.2652, the "Bring Entrepreneurial Advancements To Consumers Here In North America Act," proposes amendments to the Internal Revenue Code of 1986. The bill aims to incentivize the relocation of manufacturing to the United States through tax benefits.
Specifically, it introduces accelerated depreciation for nonresidential real property acquired in connection with relocating manufacturing to the U.S. It also allows for the exclusion of gain on the disposition of property used in manufacturing that is being relocated to the U.S.
Finally, the bill proposes making full expensing for qualified property permanent.
Expected Effects
If enacted, H.R.2652 could lead to increased manufacturing activity within the United States. This could be achieved by making it more financially attractive for companies to move their production facilities back to the country.
The permanent full expensing provision would further incentivize investment in qualified property. This could stimulate economic growth and job creation.
The bill could also impact international trade relationships and potentially lead to shifts in global supply chains.
Potential Benefits
- Increased domestic manufacturing: The tax incentives could encourage companies to relocate manufacturing operations to the U.S., boosting the manufacturing sector.
- Job creation: Relocating manufacturing could lead to new job opportunities in the United States.
- Economic growth: Increased investment and production could stimulate economic growth.
- Simplified tax code: Permanent full expensing simplifies tax calculations for businesses.
- Enhanced competitiveness: The tax benefits could make U.S. manufacturing more competitive globally.
Potential Disadvantages
- Potential for abuse: The definition of "qualified relocation" might be exploited, leading to unintended tax benefits for companies not genuinely relocating manufacturing.
- Revenue loss: The tax incentives could reduce government revenue, potentially increasing the budget deficit.
- International trade tensions: The bill could be viewed as protectionist, potentially straining relationships with other countries.
- Complexity: The specific definitions and requirements could create complexity for businesses trying to comply with the new rules.
- Uneven distribution of benefits: The benefits may primarily accrue to large manufacturing companies, potentially exacerbating existing inequalities.
Most Disadvantaged Areas:
Constitutional Alignment
The bill primarily deals with tax policy, which falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises as outlined in Article I, Section 8, Clause 1 of the Constitution. The incentives for relocating manufacturing to the United States could be argued as promoting the general welfare, as stated in the Preamble.
However, the bill's potential impact on international trade could raise questions regarding the Commerce Clause (Article I, Section 8, Clause 3), which grants Congress the power to regulate commerce with foreign nations. The bill does not appear to infringe on any individual liberties or rights protected by the Bill of Rights.
Overall, the bill's constitutional alignment is strong, as it operates within the enumerated powers of Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).