Us Congress 2025-2026 Regular Session

Us Congress House Bill HB508

Introduced
1/16/25  

Caption

Bring American Companies Home Act This bill requires the Department of the Treasury to establish a program and regulations allowing U.S. persons (U.S. citizens or residents, domestic partnerships or corporations, or estates and trusts) to deduct in the tax year incurred costs of moving inventory, equipment, and supplies used in a trade or business from China to the United States.The bill alsoestablishes a trust fund and appropriates to such fund tariff amounts collected by the United States on goods manufactured in China,appropriates from such trust fund to the general fund of the Treasury amounts equivalent to the reduction in revenue resulting from the tax deduction, andrequires amounts to be transferred between funds at least monthly.

Impact

The bill proposes a program administered by the Secretary of the Treasury that will outline specific regulations governing the allowable deductions for moving expenses. According to the bill, only expenses directly related to moving business properties as defined by the Internal Revenue Code will qualify for the deduction. By tying the potential deductions to tariffs collected from China, the legislation attempts to offset the financial implications of moving costs against federal revenue, aiming for a neutral fiscal effect on the Treasury.

Summary

House Bill 508, titled the 'Bring American Companies Home Act', is designed to facilitate the repatriation of business property from China to the United States by allowing businesses to expense amounts paid for the relocation. The proposed legislation aims to support businesses in bringing their inventory, equipment, and supplies back to the U.S. by providing a tax deduction in the year that these expenses are incurred. This act is particularly relevant in the context of ongoing discussions about supply chain security and economic strategy amidst the shifting global trade landscape.

Contention

While the bill is framed as a necessary measure to boost American business and reduce reliance on foreign manufacturing, it may raise concerns over the impacts on the current economy and competitive landscape. Critics may argue that providing tax deductions for moving expenses could disproportionately benefit larger corporations with the means to relocate operations, while small businesses may not gain similar advantages. Moreover, there are discussions regarding the effectiveness of such a policy in genuinely incentivizing businesses to move back to the U.S., given other factors that influence corporate relocation decisions, such as labor costs and infrastructure.

Congress_id

119-HR-508

Policy_area

Taxation

Introduced_date

2025-01-16

Companion Bills

No companion bills found.

Previously Filed As

US HB25

FairTax Act of 2023 This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

US SB5645

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US SB5505

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US HB34

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US HB10553

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US HB23

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US HB4026

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US SB5564

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Similar Bills

No similar bills found.