U.S. Rep. Chip Roy, R-Texas, reintroduced legislation Thursday aimed at incentivizing manufacturers to move their operations from foreign countries to the United States.
The bill, known as the “BEAT CHINA” Act— short for Bring Entrepreneurial Advancements To Consumers Here In North America—seeks to revise the federal tax code to promote reshoring by offering financial benefits to qualifying manufacturers.
According to a press release from Roy’s office, the legislation is designed to help reduce U.S. reliance on countries like China for manufacturing and supply chain stability.
“China is angling to surpass the United States as the world’s leading superpower, both politically and economically,” Roy said in the release. “If we want to preserve our strength and freedom as a nation, we cannot rely on adversaries like the Chinese Communist Party to keep our shelves stocked and our economy prosperous.”
Roy said the legislation would help ensure that the U.S. remains globally competitive by encouraging companies to bring manufacturing operations back to American soil.
He also called for swift congressional action and collaboration with the Trump administration on the measure.
The bill offers several tax incentives, including:
• Allowing full and immediate expensing of non-residential real property by reclassifying it as 20year property instead of the current 39-year designation.
• Making permanent the full expensing provision from the Tax Cuts and Jobs Act, which is currently set to phase out after 2026.
• Allowing manufacturers to exclude from gross income any gains realized from selling assets in their country of origin as part of the relocation process.
To qualify for these incentivTo qualify for these incentives, companies must maintain at least the same level of production in the U.S. as they did in their previous foreign location.
The full legislative text was introduced in the House of Representatives and referred to the appropriate committee.
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