Brown Marks DuPont Circleville’s Plant Expansion, Made Possible In Part By Federal Manufacturing Tax Credit

Brown Fought to Pass Advanced Energy Manufacturing Tax Credits in Recovery Act, Which Helped Circleville Plant Create 70 Permanent Jobs and 230 Construction Jobs by Retooling for Clean Energy Manufacturing - Two Brown-Authored Bills Pending in the Senate that Would Help DuPont by Suspend Duties on Resins it Uses to Manufacture Parts for Transportation, Aerospace, Business Machines, and Glass Handling Industries

CIRCLEVILLE, OHIO — U.S. Sen. Sherrod Brown (D-OH) today applauded the completion of Circleville’s DuPont plant, which received $50 million in assistance through a federal tax credit. Brown fought to pass the Advanced Energy Manufacturing Tax Credit (also known as “48C”) in the Recovery Act, and has since championed legislation to extend this now-expired tax credit. Through its Advanced Energy Manufacturing Tax Credit, DuPont created more than 70 permanent jobs and 230 construction jobs at the Circleville plant. A representative from Brown’s office attended today’s grand opening celebration in Circleville.

“Because we passed this manufacturing tax credit, DuPont was able to hire more workers and expand its operations,” Brown said. “The Advanced Energy Manufacturing Tax Credit, or 48(c) program – which helped DuPont – has been overwhelmingly successful and there is a backlog of strong applications. That’s why I introduced the Security in Energy and Manufacturing (SEAM) Act which would improve 48(c) so more businesses can expand their work and hire more Ohioans.”

In October 2010, Brown toured the Circleville plant, which benefitted from a $175 million investment to expand production of its high-performance Tedlar photovoltaic film used in solar panels. Tedlar is a critical component on the back of solar panels, providing long-term durability and performance.  DuPont received more than $50 million in tax credits through the Recovery Act's Advanced Energy Manufacturing Tax Credit program. Brown is the lead cosponsor of the Security in Energy and Manufacturing (SEAM) Act, which would extend the 48(c) program and promote more domestic manufacturing of clean energy technology.

The SEAM Act would extend the program and allow for grants in lieu of tax credits. This would enable the program to reach additional companies that would otherwise be unable to utilize the program - new companies that do not yet have tax liabilities or companies that struggle to find credit in today's tight financial market. Without a grant, this program does not assist many would-be manufacturers who have yet to make a profit. Both the tax credit and grant would remain at 30 percent of the cost of the project. The SEAM Act also adjusts the selection criteria to give higher priority to facilities that manufacture - rather than assemble - goods and components in the U.S.

Earlier this month, Brown introduced two bills to renew duty suspensions on chemicals for resins used by DuPont at Circleville to manufacture parts for the transportation, aerospace, business machines, and glass handling industries.  The bills, which would temporarily suspend duties on chemicals not otherwise produced in the United States, are aimed at keeping production costs low and thereby helping save jobs at DuPont’s Circleville plant. DuPont develops, produces and sells monomers to manufacture specialty resin used for parts in automobiles, military applications, and consumer electronics, including cell phones and laptops and displays.  

Since 1982, Congress has passed legislation to temporarily reduce or suspend tariffs on certain imported products and make technical corrections to U.S. tariff laws.  These bills, known as miscellaneous tariff bills (MTBs), are designed to boost the competitiveness of U.S. manufacturers by lowering the cost of imported inputs without harming domestic firms that produce competing products. Brown’s bills were introduced as part of the MTB process initiated by the Senate Finance Committee and the House Committee on Ways and Means.  Full details on the bills, along with the bill numbers, are below.

S.2498: A bill to extend the temporary suspension of duty on 4,4'-oxydiphthalic anhydride.

S.2503: A bill to extend the temporary suspension of duty on 1,3-Bis(4-aminophenoxy)benzene (RODA).

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