WASHINGTON, DC— Woodworking companies will be able to retain earnings on a tax free basis, making dollars available for business investment, under a bi-partisan bill introduced today. The Woodworking Machinery Manufacturers Association (WMMA) helped craft and push the bill.
Representatives Rosa DeLauro (D-CT) and Adam Kinzinger (R-IL) introduced the bipartisan Manufacturing Reinvestment Account Act this morning, which is described as a "an IRA for businesses." Jamison Scott, Air Handling Systems, and Frank Kobilsek, Black Bros., were instrumental in advancing the legislation on behalf of the WMMA.
The legislation would enable manufacturers to open a manufacturing reinvestment account (MRA), similar to an individual retirement account (IRA) in a community bank. They would be able to make annual pre-tax contributions of up to $500,000 into these accounts, for a period of seven years. Funds withdrawn from the account could be invested in machinery, facilities and job training.
“If we want an economy that can be a winner in the global marketplace, we must return to an America that prizes and supports domestic manufacturing,” DeLauro said. We need to stop being a nation that simply buys things, and return to being a nation that builds things.”
Under the proposed legislation, a woodworking manufacturer contributing $500,000 annually could accumulate $3.6 million over seven years, since the savings would not be taxed, and would earn interest. That is $1 million more than the same amount invested in a taxable account.
“By allowing U.S. manufacturers to reinvest more of their money back into their businesses, this bipartisan bill would bolster manufacturing here at home and the good jobs that come with it," said Kinzinger.
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