# Understanding the Opportunities in the Americas Act

This bill is designed to encourage American companies to move manufacturing operations out of China and into Latin America and the Caribbean instead. The government would offer financial incentives to make this happen, funded partly by tariffs already collected on Chinese goods.

Here's how it works in practice: If a company wants to relocate a factory from China to a country like Mexico, Colombia, or the Dominican Republic, the U.S. International Development Finance Corporation (a government lending agency) would help by offering low-interest loans to cover moving costs, workforce training, and facility construction. The bill requires at least 10 percent of the DFC's annual budget to go toward these loans. To qualify, companies must create jobs in the destination country and commit to not doing business with China or other U.S. adversaries. The government would also help improve electrical grids and energy systems in these countries to support relocated factories.

The bill includes tax breaks for companies that move manufacturing equipment to Latin America and the Caribbean before 2030, allowing them to deduct 75 percent of these costs immediately rather than spreading them over time. The money for these incentives would come from tariffs the U.S. has already collected on Chinese imports, so theoretically it wouldn't require new government spending.

The underlying goal is straightforward: reduce American dependence on Chinese manufacturing while strengthening economic ties with nearby countries. Supporters argue this creates jobs in the Western Hemisphere and makes supply chains more secure. The program would run for 15 years before expiring, with annual progress reports to Congress tracking how many companies participate and how many jobs are created.

Opportunities in the Americas Act

Espaillat, Adriano

Opportunities in the Americas Act This bill provides assistance to eligible companies relocating manufacturing from China to a qualifying Latin American or Caribbean country, generally a country in the region that has a free trade agreement with the United States and is not a foreign adversary. For example, the U.S. International Development Finance Corporation must use at least 10 percent of its funding for each fiscal year to provide assistance, such as financing eligible costs for moving and workforce development, to businesses relocating manufacturing from China to a qualifying Latin American or Caribbean country, subject to various conditions and requirements. The bill also provides tax benefits related to certain property acquired and placed in service in connection with such a relocation of manufacturing.