President Biden’s proposed $2.2 trillion American Jobs Plan contains billions of dollars for domestic manufacturing, research and development, and supply chain support. Here are a few provisions in the proposed American Jobs Plan aimed at strengthening manufacturing in the U.S.
Upgrade America’s research infrastructure and advance U.S. leadership in critical technologies
From computing to biotechnology to artificial intelligence, U.S. leadership in developing new technologies is crucial for our national security and future economic competitiveness. The plan calls on Congress to invest $50 billion in the National Science Foundation to create a technology directorate to collaborate with and build on existing government programs, focusing on fields such as advanced computing and semiconductors, advanced energy technologies, advanced communications technology, and biotechnology. It also calls for $30 billion in additional R&D funding and $40 billion to upgrade research infrastructure in laboratories throughout the country.
Establish the U.S. as a leader in innovation, climate science, and R&D
The American Jobs plan calls on Congress to invest $35 billion in solutions we need to achieve technology breakthroughs addressing climate change and position the U.S. as a leader in clean energy technology and jobs. This includes developing new methods for reducing emissions and expanding funding for climate research.
The plan would also invest $15 billion in demonstration projects for climate R&D priorities, including carbon capture and storage, utility-scale energy storage, advanced nuclear, hydrogen, rare earth elements, biofuel/bioproducts, floating offshore wind, electric vehicles, and quantum computing.
Revitalize American manufacturers
The U.S. manufacturing sector is critical in converting research and innovation into sustained economic growth. The plan would invest $300 billion to:
Strengthen our manufacturing supply chains
The American Jobs plan would invest $50 billion to create an office at the Department of Commerce to monitor domestic industrial capacity and fund investments to support the production of critical goods here in America. The plan also invests $50 billion in semiconductor manufacturing and research, as called for in the CHIPS Act.
Protect Americans from future pandemics
This fund would provide $30 billion over four years to create jobs in the U.S. and prevent future job losses caused by pandemics. This includes investments in research and development, medical countermeasures manufacturing, and other biosecurity and biopreparedness.
Increase clean energy manufacturing
The plan aims to achieve zero-net emissions in the United States by 2025. To do this, we’ll need more electric vehicles, charging ports, and electric heat pumps for buildings. The plan includes a $46 billion investment in federal buying power to enable us to manufacture those items here in the U.S.
Increase access to capital
The plan would invest over $52 billion in domestic manufacturers through existing capital access programs with proven track records of success. It also includes support for modernizing supply chains, such as extending the 48C tax credit program, and creates a new financing program to support debt and equity investments for manufacturing to strengthen supply chain resiliency.
Other funding initiatives include:
- $20 billion in regional innovation hubs and a Community Revitalization Fund to expand manufacturing to rural communities and communities of color
- $31 billion in programs that give small businesses access to credit, R&D dollars, and venture capital
- $5 billion for a Rural Partnership Program to help rural regions and Tribal Nations create jobs and spur economic growth
Funding the American Jobs Plan: The Made in America Tax Plan
Along with the American Jobs Plan, the President is proposing corporate tax changes through the Made in America Tax Plan. The corporate tax changes will raise over $2 trillion over the next 15 years and pay for the initial investment in the American Jobs Plan by making the following changes:
- Raise the corporate tax rate to 28%
- Strengthen the global minimum tax for U.S. multinational corporations to discourage offshoring
- Encourage other countries to adopt strong minimum taxes on corporations so foreign corporations aren’t advantaged, and foreign countries can’t try to get a competitive edge by serving as tax havens
- Prevent U.S. corporations from inverting or claiming tax havens as their residence
- Invest in effective R&D incentives and eliminate a loophole for intellectual property that encourages offshoring jobs
- Deny companies expense deductions for offshoring jobs and credit expenses for onshoring
- Eliminate tax preferences for fossil fuels and ensure polluting industries pay for environmental cleanup
- Enact a minimum tax on large corporations’ book income
More Information to Come
These are just a few of the provisions in the proposed American Jobs Plan aimed at helping U.S. manufacturers, and bipartisan negotiations are still underway. If you have any questions or concerns, please contact us by emailing email@example.com.
Author: Megan O’Donnell