New Bill Aims to Reward Shoppers for Buying ‘Made in the USA’

U.S. Representatives Debbie Dingell (D-Mich.) and Ro Khanna (D-Ca.) want to reward shoppers for buying domestically manufactured products.

At a tour of the Motawi Tileworks and Leon Speakers factories in Ann Arbor, Mich. this week, the lawmakers announced the Made in the USA Tax Credit bill, which they said would reinvigorate U.S. manufacturing, spur job creation and safeguard workers by providing consumers with incentives and rewards for buying goods made in the U.S.

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Offshoring has led to the closure of 70,000 American factories since 1998, the lawmakers said, and that loss of industry has impacted communities that once relied on manufacturing jobs. Today, 12 million people are employed by domestic producers, and many benefit from being a part of unions that guarantee fair wages.

Consumers will play a vital role in retaining and and expanding U.S. industry, they said. The proposed bill would establish a refundable tax credit of up to $2,500—or $5,000 for couples filing jointly—on purchases that meet the Federal Trade Commission’s (FTC) “Made in the USA” standard. That max amount would be adjusted each year for inflation.

The Made in the USA Tax Credit would be applicable for any person (other than a tax dependent) who makes less than $125,000 and who has less than $20,000 in investment income. For couples filing together, household income would not exceed $250,000 and they would have less than $40,000 in investment income.

Under the law, funds would be set aside to support IRS outreach activities with the goal of informing shoppers and businesses in underserved communities about the tax credit and which products qualify. The tax credit would exclude luxury goods, tobacco, firearms, cars, services, food and non-depreciable property.

Reps. Dingell and Khanna introduced the bill while touring the Michigan production facilities, after speaking with workers and leadership about the future of U.S. manufacturing. Motawi Tileworks creates handcrafted ceramic tiles and large-scale installations for private and public spaces, while Leon Speakers, a family-owned business, sells soundbars and speakers.

“Investing in American manufacturing drives innovation, prosperity, and progress,” Dingell said during the tour. “I’m proud to introduce the Made in the USA bill with Rep. Khanna to encourage consumers to support the family-owned small businesses here in our communities, and to look to American products first.”

“We must continue to strengthen our domestic manufacturing and supply chain capabilities, bring home good-paying jobs, and invest in American workers, and that’s exactly what this bill does,” she added.

Representative Khanna said the bill “will make items more affordable for consumers and help support American businesses and workers.”

“It’s an important piece of what needs to be a sweeping set of policy actions designed to restore American manufacturing and technology leadership and a call to respect workers who will help our country achieve that goal,” the lawmaker added.