This bill provides tax incentives to encourage manufacturing companies to move production operations from foreign countries to the United States. The legislation offers two main benefits: companies that relocate manufacturing can depreciate their newly acquired U.S. buildings and facilities faster (over 20 years instead of the standard longer periods), and they can exclude from taxable income any gains from selling foreign property used in manufacturing. Additionally, the bill makes "full expensing" permanent, allowing businesses to immediately deduct 100 percent of the cost of qualified equipment and machinery rather than depreciating it over time. These provisions apply to property placed in service after the bill's enactment and would affect manufacturing companies of all sizes that choose to relocate production to the United States or its territories. The bill contains no new direct federal spending but would reduce tax revenue by allowing faster deductions and capital gains exclusions.
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