Democrat Representatives Ro Khanna of California and Debbie Dingell of Michigan have introduced a bill to encourage more Americans to shop from small businesses in the U.S.
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According to Newsweek, the proposed legislation, called the Made in the USA Tax Credit Act, will help support local manufacturers by providing up to $2,500 in tax credits to individuals (and $5,000 for couples) purchasing goods that meet the Federal Trade Commission’s (FTC) Made in the USA standards. These standards require that a product must be “all or virtually all” made in the U.S., per the FTC’s website.
The Small Business Administration defines a small business as having fewer than 500 employees, and the bill also excludes luxury items, tobacco, firearms and vehicles, Newsweek noted.
“I’m proud to introduce the Made in the USA bill with Rep. Khanna to encourage consumers to support the family-owned small businesses here in our communities, and to look to American products first,” Rep. Dingell said in a press release.
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Bill Seeks To Bolster American Manufacturing and Business
Since 1998, the decline in American manufacturing and the increase in imports has led to the closure of over 70,000 factories, Dingell said. The 12 million manufacturing jobs that remain pay above-average wages and are typically unionized.
According to the bill, individuals who cannot be claimed as a dependent are eligible if they had an adjusted gross income of less than $125,000 and investment income below $20,000. Couples filing jointly are eligible if they earn less than $250,000 per year and have investment income under $40,000. The credit’s maximum amount will also be adjusted with inflation each year.
The bill would also set aside funds for inclusive IRS outreach activities to inform consumers and businesses in underserved communities about the tax credit — and educate them on what goods qualify.
The bill was introduced to the House Committee on Ways and Means, Newsweek reported, and the bill must go through the House, the Senate and receive presidential approval to become law.
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This article originally appeared on GOBankingRates.com: New Tax Credit? Americans Could Get $5K To Shop USA
