Western Hemisphere Nearshoring Act
Sponsored By: Representative Green (TN)
Introduced
Summary
Shift U.S. manufacturing out of China into Latin America and the Caribbean by using finance, trade, and tax incentives. The bill would combine targeted loans from the United States International Development Finance Corporation (DFC), a 75% temporary tax expensing rule, 15 years of duty-free treatment, and tariffs on PRC-made goods to encourage firms to relocate production to the Western Hemisphere.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 3 benefits, 0 costs, 3 mixed.
75% bonus expensing for relocations
Manufacturers that move production from China to a Latin American or Caribbean country could expense 75% of the cost of new qualifying equipment and property. It would apply to property first used after enactment and before January 1, 2038, and placed in service in the region. To qualify, the firm would need Treasury’s determination and a binding agreement, and the new output would need to match the shift away from China. Some usual bonus-depreciation limits would not apply.
15-year duty-free imports for assisted firms
The President could grant duty-free or other favorable treatment for goods or services made in a Latin American or Caribbean country by a company that got DFC help. The break could last up to 15 years starting when that company begins operations there. The President would set the rules and conditions.
U.S. would seek new LAC trade deals
The U.S. Trade Representative would start talks for new trade deals with Latin American and Caribbean countries that do not already have one with the United States. Talks would start only if a country is working to reduce unlawful migration, is reducing reliance on the PRC, and allows Taiwan to keep a commercial office. If deals are reached, U.S. exporters could see lower tariffs and clearer rules.
Low-rate DFC loans to move factories
The DFC would set aside at least 10% of certain funds each year to offer low-rate loans for moving factories from China to Latin America or the Caribbean. Loans would cover moving equipment, worker training, and building facilities, with rates no higher than the lower of the Federal funds rate or 0.5–1 percentage point below the loan’s rate (not below 0%). Firms would need to create local jobs, move the funded assets within 2 years (unless extended), keep them there, and avoid ownership or headquarters ties to foreign adversaries; Commerce would also need to find no harm to U.S. jobs. The DFC would prioritize U.S.-owned firms and critical industries, and it would not support entities owned or controlled by foreign governments (except limited technical help for non-adversaries). The region would generally exclude Cuba and Venezuela unless State certifies significant political and human-rights reforms.
Tariff fund to offset program costs
A new Treasury trust fund would receive amounts equal to tariffs the U.S. collects on goods made in China. The fund would then transfer amounts equal to revenue lost from DFC assistance back to the General Fund, using timing rules like those in the tax code. This would change how the program is offset but would not change tariff rates.
Possible nuclear reactor sales in LAC
The President could pursue agreements that allow sales of U.S. nuclear reactors to Latin American or Caribbean countries or qualifying firms. Sales would need a national security finding and the country or firm must meet conditions on migration, reliance on the PRC, and a Taiwan commercial office. USAID could help with grid and energy-efficiency planning with the Energy Department and the DFC.
Sponsors & CoSponsors
Sponsor
Green (TN)
TN • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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