# The Bring Jobs Home Act: What It Actually Does

This bill creates a financial incentive for companies to move jobs back to the United States from overseas. Specifically, it offers a tax credit worth 20 percent of the costs companies spend when relocating operations from foreign countries back to America. So if a company spends $1 million moving a factory from Mexico back to the U.S., they'd get a $200,000 tax credit to reduce what they owe in taxes.

The bill also does the opposite to discourage outsourcing: it prevents companies from deducting the costs of moving jobs overseas. If a company closes a U.S. operation and opens the same business unit in another country, they can't write off those relocation expenses on their taxes. This makes outsourcing more expensive for companies by eliminating a tax break they previously had. The bill also applies this same restriction to foreign companies' profits that are taxed by the U.S., making it harder for them to reduce their tax bills through outsourcing.

To actually claim the tax credit for bringing jobs home, companies must meet one key requirement: they have to hire more full-time employees in the U.S. than they had before they started the relocation process. This ensures the credit goes to companies genuinely creating American jobs, not just moving paperwork around. Additionally, the bill reinstates a deduction for moving expenses that had previously been eliminated, making it easier for employees to deduct costs when they relocate for work within the country.

The bill's goal is straightforward: make it financially attractive for companies to keep or bring manufacturing and business operations to America while making outsourcing less profitable. This could potentially affect workers in industries where companies have moved jobs overseas, though the actual impact would depend on how many companies take advantage of the credit.

Bring Jobs Home Act

Pascrell, Bill

Bring Jobs Home Act This bill (1) grants business taxpayers a&nbsp;tax credit for up to 20% of insourcing expenses incurred for eliminating a&nbsp;business located outside the United States and&nbsp; relocating it within the United States, and (2) denies a tax deduction for outsourcing expenses incurred in relocating a U.S. business outside the United States. The bill requires an increase in the taxpayer's employment of full-time employees&nbsp;in the United States in order to claim the tax credit for insourcing expenses. The bill eliminates the temporary suspension (for taxable years 2018 through 2025) of the tax deduction for moving expenses.