On Thursday, August 1, 2013 U.S. Senators Sherrod Brown and Roy Blunt and U.S. Representatives Joe Kennedy and Tom Reed introduced the Revitalize American Manufacturing and Innovation Act of 2013 (RAMI). The bipartisan RAMI Act of 2013 will establish a Network for Manufacturing Innovation in an effort to reposition the United States as the world leader in advanced manufacturing and to create a network of regional institutes across the country. The RAMI Act builds upon the President’s call for establishing a National Network for Manufacturing Innovation to build up 45 institutes over the next decade.
“This is about providing the manufacturing infrastructure in this country to retain our competitive edge. Our bipartisan bill would also ensure that American workers, universities, and large and small manufacturers can out-compete and out-innovate the rest of the world,” Senator Sherrod Brown (OH).
“This bipartisan bill will create an important network of partnerships to bolster private sector job creation nationwide,” Senator Roy Blunt (MO).
“As Co-Chair of the House Manufacturing Committee we hear from manufacturers of all sizes about the need to coordinate education and training efforts. Creating a network of regional institutions across the country will support the kind of education needed to fill in-demand positions. With this infrastructure in place, we can grow domestic manufacturing and put Americans back to work,” Congressman Tom Reed (NY).
“From still-stubborn unemployment rates to trade deficits and income inequality: a national manufacturing policy is essential to putting this country back on solid economic footing. This national network will be smart and strategic in addressing perennial manufacturing challenges, building an infrastructure from the local level up that is directly tapped into the unique regional challenges US manufacturers face. Best of all, these institutes will be incubators for the kind of strong, middle-class workforce that our economic recovery depends on,” Congressman Joe Kennedy (MA).
The institutes would be established across the country in increasing advanced manufacturing technologies thus enhancing competitiveness and improving the U.S. economy.
“NNMI has the potential to accelerate U.S. manufacturing innovation by harnessing the collective power of our world-class companies and universities. This is an important first step, and I look forward to working with Congress to see this important initiative across the finish line,” U.S. Secretary of Commerce Penny Pritzker.
This amends the Internal Revenue Code to allow a taxpayer to elect a tax deduction for an amount equal to 71% of the lesser of: (1) the taxpayer’s patent box profit, or (2 the taxpayer’s taxable income for the taxable year. Defines “patent box profit” to include gross receipts derived from the sale, lease, license, or or other disposition of qualified patent property in the course of a U.S. trade or business over the sum of the taxpayer’s cost of goods sold allocable to patent gross receipts, other expenses, losses, or deductions, including research and development expenditures, allocable to such receipts, plus routine profit. Defines “qualified patent” to include a patent issued or extended by, or for which an application is pending before, the United States Patent and Trademark Office (USPTO).
Sets forth rules for the application of the patent box profit deduction to pass-thru entities, including partnerships and S corporations, trusts and estates, and agricultural and horticultural cooperatives.
Download the PDF – H.R. 2605 “To amend the Internal Revenue Code of 1986 to allow a deduction for patent box profit from the use of United States patents.” Click Here.
Congress has received President Obama’s budget request for FY 2014, which includes $142.773 billion for research and development (R&D), a $1.861 billion (1.3%) increase from the FY 2012 actual funding level of $140.912 billion. Research and Development funding for the Department of Commerce’s National Institute of Standards and Technology (NIST) would increase by $1.428 billion. The NIST growth is fueled by increases in funding for its core research laboratories and by the establishment of the National Network for Manufacturing Innovation (NNMI) with $1 billion in mandatory funding. The NNMI seeks to promote the development of manufacturing technologies with broad applications.
National Network for Manufacturing Innovation (NNMI)
The President’s FY2014 budget once again proposes the establishment of a National Network for Manufacturing Innovation (NNMI) to promote the development of manufacturing technologies with broad applications. First proposed in President Obama’s FY2013 budget request, this initiative would be carried out through a collaboration among NIST, DOD, DOE, and NSF.33
According to NIST, the NNMI would consist of
a network of institutes where researchers, companies, and entrepreneurs can come together to develop new manufacturing technologies with broad applications. Each institute would have a unique technology focus. These institutes will help support an ecosystem of manufacturing activity in local areas. The Manufacturing Innovation Institutes would support manufacturing technology commercialization by helping to bridge the gap from the laboratory to the market and address core gaps in scaling manufacturing process technologies.
The President’s budget requests a mandatory appropriation to NIST of $1 billion over nine years (FY 2014-FY 2022) in support of up to 15 NNMI manufacturing innovation institutes. Funding for the program would be front-loaded with NIST anticipating obligating $147.6 million in FY 2014, and $672 million in spending projected for FY 2014-FY 2018.35