Sponsor
Mark E. Green
Representative · R-TN
Representative · R-TN
The bill leverages tax breaks, DFC finance, tariff preferences, and trade tools to shift supply chains from China to Latin America/Caribbean—boosting regional development and U.S. strategic resilience but increasing federal fiscal exposure, regulatory complexity, and risks of uneven competitive impacts and diplomatic or safety tradeoffs.
Small businesses, manufacturers, and U.S. supply chains: the bill encourages and subsidizes moving production out of China into Latin America and the Caribbean, reducing reliance on the PRC and strengthening supply-chain resilience.
Qualified firms and exporters: firms relocating to the region gain financial incentives (accelerated tax deductions, DFC-backed finance, lower interest floors, and workforce-training support) that lower upfront costs and improve project viability.
U.S. exporters, workers, and consumers: the bill creates prioritized market access, tariff preferences, and new trade negotiation authority that can expand U.S. exports and job opportunities while potentially lowering prices on qualifying imports.
U.S. taxpayers: the package accelerates tax deductions, increases DFC exposure, and reduces tariff receipts in ways that could raise federal fiscal costs or deficits if offsets are inadequate or loans default.
U.S. workers and communities: subsidies and incentives that encourage firms to move production offshore may not produce net U.S. job gains and could shift manufacturing and related employment away from some U.S. communities.
Competing firms and market fairness: narrowly targeted incentives (e.g., limited to firms relocating from China, prioritizing U.S.-owned firms, excluding certain enterprises) create uneven competitive advantages and may disadvantage some domestic or foreign firms.
Based on analysis of 11 sections of legislative text.
Provides tax, DFC financing, tariff-trust funding, and trade measures to incentivize relocation of manufacturing from China to Latin America/Caribbean with job, ownership, and security conditions.
Official title: To decrease dependency on People's Republic of China manufacturing and decrease migration due to lost regional economic opportunities.
Introduced January 16, 2025 by Mark E. Green · Last progress January 16, 2025
Creates a coordinated package of incentives and tools to encourage U.S. and allied manufacturers to move production out of the People’s Republic of China into Latin America and the Caribbean. It provides a temporary enhanced bonus depreciation tax break for qualified relocations, directs the Development Finance Corporation (DFC) to set aside financing and lower interest rates for relocation and workforce costs, authorizes presidential duty‑free/preferential treatment for qualifying goods, requires USTR trade negotiations with willing countries, and adds national‑security screening rules and Treasury trust‑funding mechanics tied to tariffs on Chinese-made goods. The bill sets eligibility, capacity, and certification requirements for companies claiming benefits, conditions support on job creation and foreign‑control safeguards, and adds policy priorities to the BUILD Act to favor U.S.-owned firms and critical‑industry production in the Western Hemisphere.