DeLauro, Blumenthal Emphasize Legislation to Create Jobs, Boost Economy

NEW HAVEN, CT—Congresswoman Rosa DeLauro and Senator RichardBlumenthal teamed up today to highlight to need to pass the ManufacturingReinvestment Account Act, legislation that would enable manufacturers toopen a Manufacturing Reinvestment Account (MRA), similar to an IndividualRetirement Account (IRA). The two discussed their legislation after a tour ofPegasus Manufacturing in Middletown.

"The Manufacturing Reinvestment Account Act wouldenable America's manufacturers to reinvest more of their profit back into theirbusinesses," DeLauro said. "This gets them a bigger return on theirhard-earned dollars, ultimately creating jobs and boosting the economy. We mustsupport domestic manufacturing, a key part of Connecticut's economy since EliWhitney's era. This bill does just that by incentivizing manufacturers tocreate good jobs here at home."

Blumenthal said: "This bill is a spark plug to jumpstart investment in a key sector of our local and national economy, growingjobs and supporting industry nationwide. Manufacturers like Pegasus are centralto our economic growth, producing specialized products that propel globalindustry, using high-skilled labor and innovative technology that is second tonone. Businesses like Pegasus want to grow, and we are serious about addingjobs and growing our economy, we need common sense solutions such as this billto allow our manufacturers to reinvest in the future of their businesses. Ilook forward to working with the Connecticut delegation to enact this importantlegislation."

Chris DiPentima, President of Pegasus Manufacturing,said: "The Manufacturing Reinvestment Account Act provides a greatopportunity for manufacturers to re-invest pre-tax dollars back into ourworkforce and facilities so that we can continue to successfully develop ourorganizations and grow our companies. This type of positive legislationfocused on supporting manufacturing, the backbone of the American economy, isexactly what is needed to further facilitate growth and realize the incredibleopportunities that are before us and which have generated the resurgence inU.S. manufacturing employment and revenue growth."

"Helping smaller manufacturers like me, and other members ofthe New Haven Manufacturers Association, invest in new technology, job training,workforce development, green energy enhancements, plant expansions andultimately job creation are the real values of the MRA, ManufacturingReinvestment Account," said Jamie Scott, Chair of Legislative Affairsfor the New Haven Manufacturers Association (NHMA). The NHMA was instrumentalin creating and developing the Manufacturing Reinvestment Account Act,and worked with DeLauro's office to craft a solid piece of legislation thatcould 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 annualpre-tax contributions of up to $500,000 into these accounts, for a period ofseven years. Funds withdrawn from the account could be invested in machinery,facilities and job training.

For example, if a manufacturer contributes $500,000 annuallyand the account earns interest at five percent, with a low 15 percent tax rateon amounts distributed from the MRA, after seven years the manufacturer wouldhave approximately $3.6 million to reinvest in their business. That amount isabout $1 million more than had the same amount been invested in a taxableaccount.