# The RAM Act of 2023: A Tax Break for Moving Manufacturing Back to America

This bill creates a new tax credit designed to encourage American companies to move their manufacturing equipment out of China and bring it back to the United States. Essentially, if a company owns machinery that's currently being used to make products in China, and they decide to ship that equipment to America to continue manufacturing here, the government will give them a tax break to help cover the costs of moving it.

The tax credit works like this: companies can deduct a percentage of their moving expenses—including shipping costs, import duties, and tariffs—directly from their taxes. The percentage starts generous and phases down over time. In 2023 and 2024, companies can write off 100 percent of eligible moving expenses. That drops to 80 percent in 2025 and 60 percent in 2026. However, there's a cap: no single company can claim more than $25 million in credits per year. The entire program expires after 2026, meaning companies won't be able to claim these credits for moves happening after that date.

There are some important strings attached. If a company gets the tax credit but then moves that same equipment back out of the United States within three years, they have to pay back the entire tax break they received. Additionally, companies can't use this credit to get a "double benefit"—they can't claim both this tax credit and other deductions for the same moving expenses. The bill also prevents large corporate groups from gaming the system by treating all related companies as one entity when calculating the $25 million annual limit.

RAM Act of 2023

Posey, Bill

Reshoring American Manufacturing Act of 2023 or the RAM Act of 2023 This bill allows business taxpayers a tax credit, up to $25 million in a taxable year, for the cost of eligible reshoring expenses. The bill defines eligible reshoring expenses as amounts paid for the transportation (including any import duties, fees, or tariffs imposed with respect to such transportation) of manufacturing equipment from China to the United States. The credit expires after 2026.