# Plain Language Summary of H.R. 1128

This bill creates a tax break for American businesses that move their manufacturing operations out of China and back to the United States. Specifically, if a company pays to relocate equipment, inventory, and supplies from China to America, they can deduct those moving costs from their taxes in the year they pay for the move. This means businesses get an immediate tax benefit that reduces what they owe to the government, making the relocation financially easier.

The bill sets up a special funding mechanism to pay for this tax break. It creates a trust fund that collects money from tariffs (taxes) that the U.S. government already collects on Chinese goods. That tariff money then covers the cost of the tax deductions businesses receive for moving their operations. In other words, the government is using money it already collects from Chinese imports to fund incentives for companies to stop importing from China and start manufacturing domestically instead.

The practical effect is that this bill tries to encourage "reshoring"—bringing manufacturing jobs and production back to America. A company that's been making products in China could get a financial incentive to move that production to a U.S. factory. However, the benefit only applies to legitimate business moving expenses, not just any costs a company claims. The Treasury Department will write rules to make sure companies don't abuse the system by claiming unrelated expenses as moving costs.

To allow expensing of amounts paid to move business property from China to the United States, and for other purposes.

Green, Mark E.

 <p>This bill directs the Department of the Treasury to establish a program to treat amounts paid by U.S citizens or business entities to move their inventory, equipment, and supplies from China to the United States as items of expense, deductible in the year in which they are incurred. The cost of this expensing allowance shall be paid for with tariffs collected by the United States on goods manufactured in China. </p>