Rural Industry Reshoring and Reinvestment Act
The Rural Industry Reshoring and Reinvestment Act encourages manufacturing and supply chain investments in rural communities by offering targeted incentives for reshoring and domestic expansion. The Act supports site development, job creation, and localized supply chains to reduce dependence on foreign production. Its goal is to strengthen rural economies and rebuild domestic industrial capacity.
Key Provisions
Rural Reshoring Tax Credit Program: Provides income and property tax credits to companies that relocate or expand manufacturing operations in designated rural opportunity zones.
Industrial Site Development Grant Fund: Supports local governments and development authorities in preparing industrial sites through infrastructure, utilities, and permitting assistance.
Job Creation Performance Grants: Awards grants to employers that meet hiring and wage thresholds in rural counties.
Supply Chain Localization Bonus: Offers additional credits for companies establishing domestic supply chains that replace foreign dependencies.
Rural Industry Opportunity Zone Designation: Establishes criteria for identifying eligible counties based on population, income, and employment levels.
Model Language
Section 1. Short Title. This Act shall be known and may be cited as the “Rural Industry Reshoring and Reinvestment Act.”
Section 2. Purpose. The purpose of this Act is to attract manufacturing and supply chain investment to rural areas by offering targeted incentives and site development support, with a focus on reshoring industries previously located outside the United States.
Section 3. Definitions.
(a) “Eligible business” means a manufacturing or logistics company that locates or expands in a designated rural opportunity zone.
(b) “Rural opportunity zone” means a county or jurisdiction with a population below a threshold set by the administering agency and with economic indicators below the state or national average.
(c) “Department” means the relevant state agency responsible for economic development.
Section 4. Rural Reshoring Tax Credit Program.
(a) Eligible businesses may receive the following tax incentives: (1) A state income tax credit equal to 5% of qualifying payroll for up to 10 years; (2) A property tax abatement for up to 10 years on new capital improvements.
(b) The business must create at least 15 full-time jobs with a median wage equal to or greater than the county median.
Section 5. Industrial Site Development Grant Fund.
(a) The Department shall establish a fund to support infrastructure improvements at rural industrial sites.
(b) Eligible uses include site grading, roads, utilities, broadband, and environmental permitting.
(c) Grants shall be awarded to local governments, regional development authorities, or economic development nonprofits.
Section 6. Job Creation Performance Grants.
(a) Businesses may receive a grant of $3,000 per full-time job created in a rural opportunity zone.
(b) Jobs must be maintained for a minimum of 36 months.
Section 7. Supply Chain Localization Bonus.
(a) Businesses may claim an additional 10% tax credit on qualifying capital investment if the project replaces a previously imported supply chain.
(b) The Department shall establish criteria and documentation standards for this determination.
Section 8. Rural Industry Opportunity Zone Designation.
(a) The Department shall maintain a list of eligible rural areas based on population and economic indicators.
(b) Zones shall be updated every three years.
Section 9. Severability. If any provision of this Act is held invalid, such invalidity shall not affect the other provisions.
Section 10. Effective Date. This Act shall take effect on January 1 of the year following its enactment.