HR 508119th CongressIn Committee

Bring American Companies Home Act

Introduced: Jan 16, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Bring American Companies Home Act would let U.S. businesses deduct in the year they pay costs to move inventory, equipment, and supplies from China to the United States. The policy is designed to encourage domestic relocation of production assets by accelerating tax relief for moving expenses. To offset the lost revenue from allowing this deduction, the bill creates a special fund funded by tariffs collected on Chinese-made goods and directs transfers from that fund to the U.S. General Fund to maintain revenue neutrality. The Treasury would administer the program and issue regulations to limit the deduction to legitimate moving expenses as defined by the Internal Revenue Code.

Key Points

1The Secretary of the Treasury would establish a program allowing a deduction (expensing) in the year Moving Costs are paid for moving inventory, equipment, and supplies from China to the United States.
2Regulations would cap the deduction to genuine moving expenses as defined by the Internal Revenue Code and related guidance.
3A Tariffs on China Trust Fund would be created, funded by tariffs collected on goods manufactured in China.
4Amounts in the trust fund would be appropriated to the General Fund to offset the revenue loss caused by the new expensing provision, with timing and transfer rules modeled after IRC section 9601.
5The program defines a United States person (per IRC 7701(a)(30)) as eligible for the deduction, and Treasury or its delegate would oversee the program.

Impact Areas

Primary group/area affected: U.S. businesses moving production-related property (inventory, equipment, and supplies) from China to the United States; tax professionals advising these entities; and Treasury/IRS administration of the program.Secondary group/area affected: Tariff revenue collection and administration, since tariffs on Chinese goods fund the offset; potential effects on supply chain decision-making and corporate relocation strategies.Additional impacts: Potential revenue effects for the General Fund of the Treasury due to the offset; compliance and administrative costs associated with implementing new regulations and ensuring costs qualify as moving expenses.

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