The New Haven Manufacturers Association is urging all Connecticut manufacturers to support a proposal by U.S. Rep. Rosa DeLauro to create a tax-free savings program for manufacturers that is similar to an Individual Retirement Account.
DeLauro has introduced the Manufacturing Reinvestment Account Act, which would allow manufacturers to save money to invest in plant, equipment, job training or workforce development. Much like an IRA, funds would build up tax free.
With an MRA manufacturers could make annual contributions up to $500,000 over a period of seven years. If a manufacturer contributes $500,000 annually and the account earns interest at 5 percent, with a 15% tax rate on amounts distributed from the MRA, after seven years the manufacturer would have approximately $3.6 million to reinvest in his or her business.
The idea for the MRA originated with Hugh McCann, president of Identification Products Corp. in Bridgeport, and Jamison Scott, president of Air Handling Systems Inc. in Woodbridge.
“If we want our nation to continue to be successful and competitive in the global marketplace, we must return to an outlook in America that prizes and supports domestic manufacturing,” DeLauro said. “The Manufacturing Reinvestment Account Act (will enable) America’s manufacturers to invest in their business and get a bigger return on their hard-earned dollars. I worked with local manufacturers in my district to write this bill.”
DeLauro recommends that business leaders and owners discuss the proposed bill directly with members of the House Committee on Ways and Means, which must review the bill. The New Haven Manufacturers Association urges you to heed DeLauro’s advice and contact your senators and representatives in support of this vital bill.
Here is a list of groups and companies that have endorsed the Act:
Association For Manufacturing Technology
Association of Woodworking & Furnishings Suppliers®, AWFS®
Greater New Haven Chamber of Commerce
Industrial Fasteners Institute (IFI)
Forging Industry Association (FIA)
New Haven Manufacturers Association (NHMA)
Wood Machinery Manufactures Of America (WMMA)
Air Handling Systems
Identification Products Corporation
Panel Pro Technology
Schwerdtle Stamp Company
SOURCE: New Haven Manufacturers Assn.
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