DeLauro, Blumenthal Emphasize Legislation To Create Jobs, Boost Economy

Press Release

Congresswoman Rosa DeLauro and Senator Richard Blumenthal teamed up today to highlight to need to pass the Manufacturing Reinvestment Account Act, legislation that would enable manufacturers to open a Manufacturing Reinvestment Account (MRA), similar to an Individual Retirement Account (IRA). The two discussed their legislation after a tour of Pegasus Manufacturing in Middletown.

"The Manufacturing Reinvestment Account Act would enable America's manufacturers to reinvest more of their profit back into their businesses," DeLauro said. "This gets them a bigger return on their hard-earned dollars, ultimately creating jobs and boosting the economy. We must support domestic manufacturing, a key part of Connecticut's economy since Eli Whitney's era. This bill does just that by incentivizing manufacturers to create good jobs here at home."

Blumenthal said: "This bill is a spark plug to jump start investment in a key sector of our local and national economy, growing jobs and supporting industry nationwide. Manufacturers like Pegasus are central to our economic growth, producing specialized products that propel global industry, using high-skilled labor and innovative technology that is second to none. Businesses like Pegasus want to grow, and we are serious about adding jobs and growing our economy, we need common sense solutions such as this bill to allow our manufacturers to reinvest in the future of their businesses. I look forward to working with the Connecticut delegation to enact this important legislation."

Chris DiPentima, President of Pegasus Manufacturing, said: "The Manufacturing Reinvestment Account Act provides a great opportunity for manufacturers to re-invest pre-tax dollars back into our workforce and facilities so that we can continue to successfully develop our organizations and grow our companies. This type of positive legislation focused on supporting manufacturing, the backbone of the American economy, is exactly what is needed to further facilitate growth and realize the incredible opportunities that are before us and which have generated the resurgence in U.S. manufacturing employment and revenue growth."

"Helping smaller manufacturers like me, and other members of the New Haven Manufacturers Association, invest in new technology, job training, workforce development, green energy enhancements, plant expansions and ultimately job creation are the real values of the MRA, Manufacturing Reinvestment Account," said Jamie Scott, Chair of Legislative Affairs for the New Haven Manufacturers Association (NHMA). The NHMA was instrumental in creating and developing the Manufacturing Reinvestment Account Act, and worked with DeLauro's office to craft a solid piece of legislation that could become law.

The legislation would enable manufacturers to open a MRA, similar to an IRA in a community bank. They would be able to make annual pre-tax contributions of up to $500,000 into these accounts, for a period of seven years. Funds withdrawn from the account could be invested in machinery, facilities and job training.

For example, if a manufacturer contributes $500,000 annually and the account earns interest at five percent, with a low 15 percent tax rate on amounts distributed from the MRA, after seven years the manufacturer would have approximately $3.6 million to reinvest in their business. That amount is about $1 million more than had the same amount been invested in a taxable account.

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