Bel Air, MD - The Wood Machinery Manufacturers of America (WMMA), the national trade association for those who make machinery, cutting tools and supplies for the woodworking industry, has announced its support of legislation introduced last week in the U.S. Congress to allow manufacturers to reinvest in machinery, facilities and job training through a Manufacturing Reinvestment Account (MRA).
"The MRA is like an IRA for manufacturers," said Jamison Scott, vice president of WMMA. "It allows manufacturers to make annual pre-tax contributions of up to $500,000 for seven years, and use the funds to reinvest in their businesses. This is a bill that has true bipartisan support."
The Manufacturing Reinvestment Account Act was introduced by Rep. Rosa DeLauro, D-Conn., and Adam Kinzinger, R-Ill. It is H.R. 1737.
"The Manufacturing Reinvestment Account Act is a win for American manufacturers and the communities their workers call home," said Kinzinger. "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."
The idea originated in Connecticut with members of the New Haven Manufacturers Association, and today's action marks the third time the bill has been introduced.
"We started working with Rosa in 2009, and we knew it would take several cycles for something to happen," said Scott, who coined the term "Manufacturing Reinvestment Account." "There is definitely more interest right now in Washington, D.C., so the timing is really good."
While the legislation would affect smaller S corporations, larger manufacturing firms support the bill because they know it will help their vendors, Scott added. He urged manufacturers to contact their area representatives and urge passage of the bill by using the website of http://www.usa.gov/Contact/Elected.shtml <http://www.usa.gov/Contact/Elected.shtml> .
DeLauro said manufacturing is a vital tool in keeping America's economy competitive in the global marketplace. "We need to stop being a nation that simply buys things, and return to being a nation that builds things," she said. "The Manufacturing Reinvestment Account Act would enable America's manufacturers to reinvest more of their profit back into their businesses, getting a bigger return on their hard-earned dollars. This bipartisan legislation supports our manufacturers, and creates and sustains jobs for hardworking Americans."
She noted that a manufacturer who contributes $500,000 annually to an MRA account that earns interest at 5 percent would have $3.6 million to reinvest in their business after seven years, with a 15 percent tax rate on amounts distributed from the MRA. That's about $1 million more than would have been compiled in a taxable account.
Source: Wood Machinery Manufacturers of America
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