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End Outsourcing Act: Tax Penalties and Incentives to Keep Jobs in America.

This law imposes severe financial and tax penalties on companies that move more than 50 jobs abroad, while offering tax credits to those that bring operations back to the US, especially to low-income areas. Citizens will benefit from greater transparency regarding outsourcing-related layoffs, and public funds (grants, contracts) will be preferentially directed toward companies supporting domestic employment.
Key points
Companies moving jobs abroad will lose the right to deduct outsourcing costs from taxes and must repay previous federal credits or grants.
A 20% tax credit is introduced for companies that relocate operations back to the US, particularly to economically disadvantaged zones (HUBZones or low-income communities).
Companies applying for federal grants or contracts that have outsourced over 50 jobs recently will face scoring penalties (minimum 10% negative preference) during the evaluation process.
Employees affected by mass layoffs must receive mandatory notice stating if their positions are being moved outside the United States.
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Additional Information
Print number: 117_HR_2745
Sponsor: Rep. Pocan, Mark [D-WI-2]
Process start date: 2021-04-21