Representative John Garamendi last week reintroduced his Make It In America: Create Clean Energy Manufacturing Jobs in America Act, H.R. 1524. The legislation would require that clean energy goods and equipment used in projects purchased or paid for by federal taxpayer dollars contain 85 percent American-made content.
The legislation represents another major proposal that invests in high tech and clean energy technology, to boost the economy while helping the environment. The bill sets a three-year phase-in schedule for the policy, with American content requirements set at 50 percent in the first fiscal year after enactment, and 60 percent in the second.
“During good times and bad, booms and busts, America invests billions of dollars in our infrastructure. We know that clean energy is an absolutely essential part of our future, yet under current law, much of our tax dollars are directly shipped to China, the European Union, and other competitors to purchase equipment manufactured abroad. Our government is directly offshoring too many American jobs, and that must change,” said Representative Garamendi.
He added, “When we’re using our limited tax money, we better prioritize American-made goods and equipment. That’s the intent behind the Make It In America: Create Clean Energy Manufacturing Jobs in America Act.”
H.R. 1524 would also set an 85 percent American content requirement for companies that use the Investment Tax Credit and the Production Tax Credit.
Representative Garamendi added, “Hardworking Americans are ready and able to do this work. My bill proposes 85 cents to the dollar in American content within three years. I think most American taxpayers would agree that it is a rather moderate expectation when we’re using their money – money that will create jobs somewhere. When we Make It In America, we provide pathways to the middle class and encourage our best and brightest to reinvent America’s economy for the better. Let’s Make It In America!”
“Congressman Garamendi has been a strong voice for creating the best conditions for American businesses to manufacture their products, innovate, and create jobs right here in the U.S. I thank him for his continued work to increase manufacturing opportunities in America,” said Democratic Whip Steny Hoyer.
“We have the technology and the ready labor force to manufacture clean energy goods and equipment – so the American taxpayer should not have to see their money go to other countries to do things we can do here,” said Congressman Ryan, Co-Chair of the House Manufacturing Caucus. “In addition, companies that are using production or investment tax credits should maintain or create American jobs. We can’t allow companies to use tax credits to ship our jobs overseas.”
Congressman Garamendi was instrumental last week in helping the city of Davis at Cap-to-Cap with its efforts for high-tech economic and university spin-off development.
Councilmember Rochelle Swanson commented last week, “Congressman John Garamendi clearly sees the title ‘representative’ as a verb. His advocacy for our needs started before we could get ten minutes into our presentation. He believes we could very well get additional federal help on the water project.”
She added that the city will need to “get him specific information so his staff can help identify additional resources. Next assignment, get information to his staff on local entrepreneurs that are facing some regulatory hurdles so they can engage.”
The city of Davis got a plug in Congressman Garamendi’s co-authored legislation reintroducing the Innovative Technologies Investment Incentive Act.
Congressman Garamendi plugged Davis, stating, “High tech businesses are the shining stars of our economy. Northern California’s technology clusters, including the City of Davis, have seen these businesses’ remarkable ability to generate economic growth and jobs.”
He added, “However, there is a ‘valley of death,’ a slew of barriers that prevent an idea from becoming a profitable product, and foremost among these is stable financing. The Innovative Technologies Investment Incentive Act helps small businesses overcome these challenges and turbocharge America’s job creation machine.”
According to their press release, “This legislation will create jobs, accelerate economic growth, and make targeted investments that keep America on the cutting edge of innovation.”
“As our economy continues to recover, the Innovative Technologies Investment Incentive Act will provide an important boost to America’s most innovative small companies at a time when that boost is needed most,” said Congressman Van Hollen. “Putting Americans back to work is our number one priority. This pro-growth initiative – modeled after the highly successful Maryland Biotechnology Investment Incentive Tax Credit and similar legislation in other states – will leverage private capital to create good-paying jobs, reward innovation, and lay the foundation for our future prosperity.”
The bill includes a number of incentives for investment as the Innovative Technologies Investment Incentive Act will:
- ACCELERATE INNOVATION by providing a 25 percent tax credit for qualified equity investments in eligible high technology and biotechnology small business concerns.
- INVEST IN QUALITY by directing credit-qualified investments only to those small businesses that have met the federal government’s rigorous requirements for receiving Small Business Innovation Research (SBIR) grant awards.
- CONTROL COSTS by establishing a per company cap for the Innovative Technology Investment Credit at one half the value of the receiving company’s SBIR award and an initial program cap of $500 million.
- REWARD LONG-TERM INVESTMENT by requiring a holding period of at least three years for qualified investments.
“Small businesses are the largest job creators in the country. The Innovative Technologies Investment Incentive Act will give our entrepreneurs and innovators the tools and resources they need to continue to grow, hire and compete. Developing America’s small businesses is critical to our economic recovery and this bill will help ensure our nation’s leadership in the global marketplace,” said Congresswoman Schwartz.
—David M. Greenwald reporting