Getting Serious About American Manufacturing
Manufacturing returns lag other industries: money and talent follow returns. If we want to rebuild manufacturing, we need to improve its return profile.
◆Bottom Line
We have a tremendous opportunity to incentivize manufacturing companies to adopt advanced manufacturing, innovate, and restore lost American product leadership while regaining national security and supporting the defense industrial base. Current equity and loan programs, while critical to the DIB, cannot scale to the tens of thousands of middle-tier suppliers required for a robust industrial base.
This package uses simple tax and finance incentives tied to Domestic Value Added (DVA: U.S. labor, facilities, and domestic inputs) to improve manufacturing returns and unlock lower-cost private financing across the full supply chain, especially the "missing middle" which current programs do not reach.
America's industrial base eroded to crisis levels since China's accession to the WTO. U.S. share of global manufacturing has fallen from 28% (2002) to approximately 15% today, representing over $2 trillion annually in foregone manufacturing output.
America doesn't have to beat China on price or features — just get close. The world will pay a premium to avoid dependence on Beijing. Today the gap is too wide. These bills deliver the financial incentives for American manufacturers to invest, narrow that gap, and win.
◆Supporting the Defense Industrial Base
This package creates a full-lifecycle support system for the thousands of Tier 2–n DIB suppliers that existing programs cannot scale to serve. See how each bill addresses defense readiness, strategic sectors, and surge capacity.
The Package: A Free-Market Incentive Suite
This package complements the One Big Beautiful Bill, Administration actions, OSC, and LPO by introducing free-market incentives throughout the manufacturing supply chain. MISA combines the MINA and DO IT NOW credits into a single two-title bill. Ten-year estimated cost: $1.44–1.62 trillion; estimated returns of $2.3–$4.4 trillion in cumulative GDP, 4.1–7.8 million jobs, and $100–$250B/yr in trade improvement.
| Bill | 10-Year Cost |
|---|---|
| MISA | $1,394–1,529B (10-year) |
| Mannie Mac | $25B appropriation ($12.7B net) |
| MERA | $36–73B (10-year) |
| TOTAL PACKAGE | $1.44T – $1.62T |
The Three Bills
Two-Tier Manufacturing Tax Credits
MISA — Manufacturing and Industrial Security Act
A single bill with two titles: Title I (MINA Credit, §38A) provides a 5–6% transferable credit on domestic value-added costs for most NAICS 31–33 manufacturers. Title II (DO IT NOW Credit, §38B) stacks an additional 8–10% for 14 strategic sectors. Combined credit ranges from 2.6% to 16% of qualified DVA costs. Credits are transferable to qualified buyers or purchasable by Treasury at 85% of face value.
View details"Mannie Mac" Manufacturing Finance GSE
Manufacturing Finance Corporation Act
Banks provide capital to manufacturing companies. Modeled on Fannie/Freddie with secondary-market securitization, banks originating loans, recycling capital, and subsidized rates. Via local banks, Mannie Mac can operate in every district.
View detailsManufacturing Succession & Reinvestment (QSBS-style)
Manufacturing Entrepreneurs Rewards Act
Capital gains relief for private manufacturing businesses transferred to entrepreneurs or heirs, encouraging reinvestment, advanced manufacturing, and preserving local capability. 100% exclusion up to $250M with a 10-year holding period.
View detailsThe Complete Policy Stack
Each bill addresses a different barrier to domestic manufacturing competitiveness. Together with OBBBA and tariff protection, they form a complete policy stack.
Together, these policies close the 30–60% structural cost gap with China across the full manufacturing lifecycle — from capital investment through daily operations to ownership succession.
Fourteen Strategic Sectors
Strategic sectors for the critical supply chain incentive (MISA Title II — DO IT NOW Credit):
Why Now
These can move as standalone bills or as part of reconciliation. But the reconciliation window, if it happens, requires action now.
This effort could fall within the "1.5% of GDP for security-related spending" identified in the recent National Defense Strategy.
All Bills & Documents
View, download, or get a complete ZIP of all documents in the legislative package — draft legislation, one-pagers, section analyses, cost-benefit analysis, and the financial model.
See All Proposed Bills & DocumentsContact: Mark Rosenblatt, Rationalwave, [email protected], 914-584-5400