LaHood, Ferguson Introduce the Bringing Back American Jobs Through Intellectual Property Repatriation Act
WASHINGTON, D.C. – Congressmen Darin LaHood (R-IL) and Drew Ferguson (R-GA), members of the House Ways and Means Committee, today introduced the Bringing Back American Jobs Through Intellectual Property Repatriation Act, which will unlock the door for American companies to return to the United States. As Ways and Means Republicans work to strengthen America’s global competitiveness in the wake of COVID-19, this legislation will remove obstacles within the tax code that discourage businesses from returning intellectual property (IP) to the United States.
“COVID-19 has illuminated the significant dangers of losing domestic supply chains to countries around the globe, particularly China,” said Rep. LaHood. “Incentivizing the return of intellectual property to the United States will ensure that we remain the world’s leader in innovation, protect good American jobs, and enable businesses to better compete with foreign companies. I am proud to join my colleagues on the Ways and Means Committee in this effort to strengthen America’s competitiveness.”
“America can be the world leader in innovation if we focus on economic growth and making the U.S. medically independent. We have an agenda for a healthy American economy, and it starts with bringing manufacturing back to the United States--particularly on the very medical supplies and drugs we need today,” Ways and Means GOP Leader Kevin Brady (R-TX) said. “America is going to harness innovation to cure coronavirus, return drug manufacturing to the United States, and make America healthy again. I want to thank Rep. LaHood for his leadership on this bill.”
“As our country continues to battle the global pandemic, the importance of repatriating America’s intellectual property has become very evident. To do that we need tax policies that will encourage the American work ethic and innovation so desperately needed in our economic recovery. As our recovery continues, we simply must protect our IP to incentivize the return of jobs and manufacturing to the United States. I am proud to join Congressman LaHood and thank him for his work on this vital piece of legislation,” said Rep. Ferguson.
The Bringing Back American Jobs Through IP Repatriation Act unlocks the door for American companies that want to come back home.
- American companies can bring back their IP developed offshore without any immediate U.S. tax cost
- Companies would still have to pay tax if they sell the IP in the future
- Businesses could continue to hold and use formerly foreign IP within the United States to support U.S. production and associated research and development.
- Supports high-paying jobs in production and applied research and, ultimately, a higher standard of living for all Americans
How it works:
This would only apply to IP held on the date of enactment. Why?
- It encourages taxpayers to bring IP home in the near future
- It discourages further development of IP and migration of high-tech jobs outside the United States
The legislation was introduced as part of Ways and Means Republicans’ Agenda for a Healthy American Economy. You can learn more about that HERE.