Building a 21st Century Manufacturing Strategy
The secret to any successful economy is to have a vibrant manufacturing industry. At the end of the day, we must build and grow things in America." - Senator Debbie Stabenow Senator Stabenow is leading the effort in the Senate to create a 21st century manufacturing strategy that will provide long-term energy solutions, create good-paying manufacturing jobs, and revitalize manufacturing across the country. As a member of the Senate Finance, Energy, Agriculture, and Budget Committees, and as Co-Chair of the bipartisan Manufacturing Caucus, Senator Stabenow has won important victories for Michigan manufacturers. Good-Paying Manufacturing Jobs in the New Clean Energy Economy Cutting Taxes for Consumers and Businesses to Encourage Investments Developing the Infrastructure Needed for a 21st Century Manufacturing Economy Leading the Fight for Fair Trade
In September 2008, Congress funded a new Advanced Technology Vehicles Manufacturing Incentive Program, authored by Senator Stabenow, which provides $25 billion in low interest loans to retool older auto plants for the production of advanced technology vehicles.
For the first time ever, companies that domestically manufacture advanced technologies used for the production of renewable energy (including batteries) will receive a manufacturing tax credit of 30% for the cost of investing in facilities and equipment. This credit, included in the Recovery Act, was co-authored by Senator Stabenow. She is now working to expand the tax credit so it can be used for additional manufacturing opportunities.
The Recovery Act included $2 billion in grant funding to encourage domestic production of advanced battery technologies, such as lithium ion batteries, hybrid electrical systems, and component and software design. Michigan has taken the lead in creating new battery technology and our state received more than half of the funds designated under this program.
The Recovery Act included $500 million for competitive grants to non-profits, private partnerships, and labor unions to assist workers in transitioning to new jobs in renewable energy, advanced technology automobile manufacturing, and other energy industries. The Administration recently announced that they will set aside $50 million of this funding to aid dislocated workers in auto communities.
Senator Stabenow led the Senate passage of the Consumer Assistance to Recycle and Save (CARS) Act, more commonly known as "cash for clunkers." She built a bipartisan coalition to pass and extend the legislation, which helped move nearly 700,000 cars off dealer lots during August 2009. The program not only reinvigorated the automotive sector, but also helped struggling scrap recyclers and aluminum and steel producers.
Many of our manufacturers require assistance to revamp and modernize their facilities, so they can create jobs and stay competitive globally. The jobs bill includes the Stabenow provision to allow companies to utilize their existing AMT credits up to 10% of new investments in manufacturing facilities and equipment purchased or placed into service during 2010. In today's credit crisis, monetizing previous tax credits is even more important to the future of the industry.
To help consumers move to newer technologies and advance the production of alternative vehicles, a $7,500 consumer tax credit was included in the Recovery Act for the first 200,000 vehicles per manufacturer. In addition, consumers will also receive a 10% tax credit toward the purchase of two- and three-wheeled electric vehicles on the market today.
The Recovery Act extended for three years the tax credit manufacturing companies receive for producing energy efficient products. In addition, businesses and homeowners who utilize solar, wind, biomass, geothermal, or even small irrigation systems to improve energy efficiency will receive tax credits.
An additional $1.6 billion for Clean Renewable Energy Bonds (CREBs) is provided to allow investment in renewable energy facilities.
A new tax credit for cellulosic ethanol, passed in the Farm Bill, will help build upon the traditional corn ethanol tax credits for businesses considering investments in Michigan. This will allow Michigan to become a leader in alternative energy by capitalizing on its strengths in agricultural research, forestry and crop production.
Senator Stabenow secured increases for grant programs that help local governments revitalize closed manufacturing plants. When manufacturers close their doors, they leave communities with sites that are ripe for redevelopment, but face barriers such as contamination, demolition costs, and aging infrastructure. Redeveloping closed plants and brownfields into new facilities will produce American technology innovation and jobs.
A vital part of a green manufacturing industry is to ensure the necessary infrastructure will be there to store and distribute alternative energy sources. A 30% to 50% business credit for property that is used to store/dispense alternative fuel into automobile fuel tanks is a necessary requirement for the commercialization of alternative sources of energy.
The future of electricity will require a comprehensive Smart Grid/Electric Transmission plan for our country. Smart grid and overall investments to electricity infrastructure improves our access to renewable electricity, encourages energy efficient products and usage, and lowers energy costs for manufacturers and consumers.
The 2008 Farm Bill provides $320 million in loan guarantees for commercialized advanced biofuel production plants. Investing in biofuel production at home helps to reduce our dependence on foreign energy sources and protects jobs in America.
To help advance biofuel producers, the 2008 Farm Bill provides incentives for increased use of agriculture commodities (except corn) and agriculture and forestry waste for biofuels. It also provides $300 million in mandatory funding over the life of the bill, ensuring that our agriculture and manufacturing industries have a role to play in the new green economy.
The Senate's 2009 Budget included a Stabenow provision that addresses the need to help American manufacturers and businesses remain competitive in a global marketplace by adopting advanced manufacturing technologies. Michigan's six Manufacturing Extension Partnership (MEP) centers assist small and medium-sized manufacturers throughout the state with cutting-edge technologies and product innovation to help them thrive in the global economy. Senator Stabenow will continue to champion funding for this vital resource for our manufacturers.
Senator Stabenow led the introduction of a bipartisan bill to penalize countries like China that undervalue their currency to artificially discount their exports sold in the United States. This form of cheating creates an unfair advantage over our products sold here and abroad, costing us jobs. The Currency Exchange Rate Oversight Reform Act will require the U.S. Departments of Treasury and Commerce to take action to support American businesses and workers.
When the federal government issued a 500-page report listing all the barriers that other countries have created to keep American products out, Senator Stabenow introduced legislation that would require the U.S. Trade Representative to identify the most egregious barriers to trade and work to end them. Under the legislation, the Trade Representative would be obliged to resolve those barriers that have the biggest negative impact on U.S. exports and job creation. The bill would also require the Trade Representative, in consultation with other relevant agencies, to focus their efforts on countries with high trade deficits with the U.S. and those that have demonstrated a pattern of unfair trade practices.
Senator Stabenow and Senator Lindsey Graham (R-South Carolina) introduced the Trade Enforcement Act, which establishes a Chief Trade Enforcement Officer to help manufacturers who are hurt by illegal trade practices. This trade prosecutor would investigate other countries' trade violations and recommend the prosecution of cases before the World Trade Organization. The Stabenow-Graham bill would also establish a Chief Manufacturing Negotiator to ensure that the interests of the U.S. manufacturing industry are adequately represented during trade negotiations.
