Democratic front-runner Hillary Clinton unveiled a new tax credit Tuesday aimed at struggling manufacturing hubs on the brink of factory closures or major layoffs.
The Manufacturing Renaissance Tax Credit would allow communities facing a significant shutdown or layoff apply for tax credits. The Clinton campaign cites a study that shows a similar program helped support projects valued on average around $16 million.
“My plan will help spur reinvestment in communities right here in Georgia that have lost jobs because of factory closures,” said Hillary Clinton. “By strengthening our manufacturing sector for the future, we can help create the next generation of good-paying jobs and put more people back to work in Georgia and across the country.”
The plan is based on an existing tax provision in federal law, known as the New Markets Tax Credit, that has stirred controversy in Georgia.
State lawmakers in April approved about $55 million in tax credits for the “New Markets” program that state and national officials have called a windfall for banks and out-of-state capital investment firms. Supporters said they would help foster the growth of small businesses.
Gov. Nathan Deal vetoed the bill in May over concerns that it would tear a costly new hole in Georgia’s budget.
Clinton’s campaign cited the recent closing of electric manufacturer Sparton Corp.’s plant in Lawrenceville as an example of a community that could potentially apply for credits through her tax proposal.
“Revitalizing our manufacturing communities and bringing back good jobs in Atlanta and across the state of Georgia must be a priority,” said Rep. David Scott, D-Atlanta, who praised Clinton’s tax cut package. “I know that with her at the helm, we will rebuild and reinvest in the best parts of Georgia’s economy."