The Collins Manufacturer's Jobs Credit provides tax incentives for manufacturing companies that hire workers who have lost manufacturing jobs and are eligible for Trade Adjustment Assistance. An American company with operations in the U.S. would be eligible and a company with US and foreign operations would be eligible - but it would only receive credit for the percentage of jobs it creates in the US relative to all jobs the business creates worldwide. The tax incentives would not be available to US manufacturers that relocate overseas. The amendment is now included as part of the "JOBS" bill (S.1637).
"This amendment is designed to ensure that only companies that are helping to build America's manufacturing base obtain this tax credit," Senator Collins said. "It is my hope that this proposal will be an important step in strengthening American manufacturers, preserving our manufacturing capacity, and helping to ensure that hard-working Americans have the jobs they need and deserve."
In a speech to the Senate, Senator Collins said, "The manufacturing industry is struggling to cope with a long-term decline that has cost many workers their jobs. No state has been hit harder than my home state of Maine." She explained that according to a recent study, Maine has lost a greater percentage of Manufacturing jobs-nearly 18,000 over the past three years-than any other state.
She further explained that the study also identified the high cost of manufacturing goods in the United States as the reason for the loss of so many jobs, but that only a small faction of the cost can be attributed to higher wages paid to American workers.
"Compared to other countries it costs an average of 22 percent more to manufacture goods in the U.S.," said Senator Collins. She cited high corporate tax rates that force American manufacturers to "do more with less," to be competitive.
Senator Collins' amendment aims to reinvigorate the manufacturing sector by helping to reduce the cost of doing business. Specifically, it creates a jobs tax credit to manufacturers that increase their payroll by hiring displaced workers who are receiving Trade Adjustment Assistance (TAA). In Maine, there are approximately 4200 dislocated workers from nearly 60 TAA-certified manufacturers.