Rep. Roy Reintroduces Legislation to Bring More Manufacturing Back to the U.S. and Away from Countries Like China

WASHINGTON —  Rep. Chip Roy (TX-21) introduced the "BEAT CHINA" Act today. This bill encourages reshoring by providing tax advantages to manufacturers that move to the U.S. from a foreign country.

Congressman Roy said:"China is angling to surpass the United States as the world's leading superpower, both politically and economically. If we want to preserve our strength and freedom as a nation, we cannot rely on adversaries like the Chinese Communist Party (CCP) to keep our shelves stocked and our economy prosperous. There is no time to waste, Congress must act swiftly and collaborate with the Trump Administration to revise the tax code to incentivize the reshoring of foreign manufacturing to the United States. The BEAT CHINA Act will do just that, and I look forward to working with House leadership on this important matter."

• Makes property eligible for full and immediate expensing, or “bonus depreciation” by making non-residential real property purchases by qualifying manufacturers considered 20-year property instead of 39-year property.
• Makes permanent full and immediate expensing under the Tax Cuts and Jobs Act (TCJA), this provision in the tax code is currently set to phase out after 2026.
• Prevents manufacturers from taking burdensome tax hits when they move to the U.S. by ensuring qualified manufacturers can exclude from gross income any gain earned on the disposition of assets in their country of origin.
• To qualify for these incentives, a manufacturer must maintain at least the same production levels in the U.S. as it did in its country of origin.