Hall, Kistler & Company – Manufacturing – President Obama’s Budget Proposal

Insight from Hall Kistler & Company on Manufacturing: What President Obama’s Manufacturing Budget Proposal Means

By S. Franklin Arner, CPA, Partner

Under President Obama’s budget proposal for manufacturing, there are incentives for small business which will permanently extend increasing the expensing of qualified property for small business.  Under Code Sec. 179, there is a $500,000 deduction limit and phase-out beginning at $2 million, including an index for inflation for tax years beginning after 2013.  President Obama is also looking for ways to boost manufacturing and the in-sourcing of jobs. The proposal calls for:

  • tax credits for investing in qualified property used in a qualified advanced energy manufacturing project;
  • establishing an additional 15 “promise zones” to promote job creation and investment in economically distressed areas;
  • creating a general business credit equal to 20% of the eligible expenses paid in connection with in-sourcing a U.S trade or business;
  • disallowing tax deductions for expenses paid in connection to outsourcing a U.S trade or business;
  • and  the creation of a new allocated tax credit referred to as “manufacturing communities tax credit” to support investments in communities that have suffered a major job loss event

For over 70 years, Hall, Kistler & Company has been working with clients in the manufacturing industry.  To learn more about President Obama’s proposed incentives, contact our team of certified accountants at Hall, Kistler & Company at 330-453-7633.


Published by Franklin Arner

Franklin is a Partner at Hall, Kistler & Company and is skilled in providing consulting, auditing, tax and accounting services for closely held companies. He has experience with companies involved in various kinds of manufacturing, wholesale and retail trade, construction activities, and not-for-profit organizations. His experience includes business consulting, services for closely-held companies, audit and review of privately held entities, and individual income tax preparation and planning with an emphasis on S Corporations. He specializes in succession planning of closely-held businesses to the next generation.

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