SE North Carolina News

Recently, Congressman David Rouzer introduced H.R. 10494, known as the Grown in America Act of 2024. This bipartisan legislation, supported by Congressmen David Kustoff, Jim Costa, and Mike Carey, aims to create a federal tax credit to encourage businesses to purchase more agricultural commodities from U.S. sources rather than relying on foreign markets.

Congressman Rouzer emphasized the importance of using American products in manufacturing: “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."

The act addresses vulnerabilities in U.S. food supply chains exposed by geopolitical tensions with China and disruptions from the COVID-19 pandemic. It seeks to strengthen domestic industries and secure supply chains crucial for maintaining America's economic status.

The legislation proposes incentives for businesses that choose U.S.-sourced agricultural commodities over imports. Qualifying businesses are those that use agricultural inputs for products intended for human consumption. To be eligible for the tax credit, businesses must source a certain percentage of their agricultural products domestically, starting at 50% in the first year and increasing by 5% annually over eight years until reaching 85%. The eligibility threshold is based on a three-year rolling average to account for potential market disruptions.

The tax credit is calculated as 25 percent multiplied by the ratio of U.S. to non-U.S. agriculture purchases.

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