WASHINGTON, D.C. — Recently, Congressman David Rouzer, alongside Congressmen David Kustoff (R-TN), Jim Costa (D-CA), and Mike Carey (R-OH) introduced H.R. 10494, the Grown in America Act of 2024. The bipartisan legislation will create a federal tax credit to help businesses shift away from foreign markets and purchase more agricultural commodities in the U.S.
“American goods should be made with American products. The Grown in America Act supports our farmers and ranchers while helping America First companies continue to compete against cheaper imported products. Bolstering the use of American agriculture products builds a more resilient supply chain for our manufacturing base while providing new and expanded markets for our producers," said Congressman Rouzer.
Background:
Current geopolitical tensions with China, along with supply chain disruptions caused by the COVID-19 pandemic, have highlighted the vulnerability of U.S. food supply chains and the agricultural sector’s exposure to foreign markets. Maintaining America’s status as the global economic powerhouse depends in part on our ability to protect critical domestic industries and fortify our supply chains.
The Grown in America Act of 2024 will incentivize businesses to purchase agricultural commodities from U.S. farmers, instead of importing them from overseas. Specifically, this legislation creates a tax credit to qualifying businesses for purchasing agricultural commodities sourced from American growers:
Qualifying businesses include those using agricultural inputs to create products intended for human consumption.
Businesses must source a certain percentage of their agricultural products from domestic growers to be eligible for the credit.
The eligibility threshold (the percentage of agriculture products a business must source domestically) begins at 50% in year one and increases by 5% annually over an eight-year period until it reaches 85%.
The eligibility threshold(s) are based on a three-year rolling average to address potential, unavoidable market disruptions.
The credit is calculated as 25 percent multiplied by the ratio of US to non-US agriculture purchases.
