Senator Baldwin unveiled the 21st Century Manufacturing Act today during a tour at TYRI, a Wisconsin manufacturer in Stevens Point this week.
“In order to maintain our strong Made In Wisconsin manufacturing economy, we need to provide tax relief to manufacturers so they can invest in innovation and create jobs,” said Senator Baldwin. “That’s why I am announcing the 21st Century Manufacturing Act, new tax reform legislation that encourages manufacturers all across our state to invest in research and development and help drive economic growth for years to come.”
Senator Baldwin’s 21st Century Manufacturing Act will reform the tax code to promote investment in research and development in Wisconsin. The legislation would change the current R&D tax credit to make it more accessible for small and medium businesses, especially manufacturers like TYRI. The tax reform legislation will also promote the adoption of “connected manufacturing” technology through a new investment tax credit for manufacturers.
Specifically, the 21st Century Manufacturing Act will:
· Increase the alternative simplified credit from 14 percent to 20 percent.
· Allow firms to use cost reduction and creating new uses for their products to count as qualified research expenditures.
· Allow firms to count managers of research products as qualified research expenditures.
· Allow companies to deduct ten percent from expenditures on ‘connected manufacturing equipment.’