President Barack Obama laid out what the White House called a ‘blueprint for an America that is built to last’ during his annual State of the Union Address. I’m sure you, together with many business owners, are concerned about what part of this ‘blueprint’ will benefit your company and aid your acquisition plans.
I won’t get into the nitty-gritty of his entire speech (If you want to read it, click here). But two sectors that have been instrumental in the economic recovery received great emphasis and caught my attention – energy and manufacturing.
Built on Manufacturing
How does the President plan to build this country with manufacturing as a foundation? Not by bailouts but with extensive policies that will highly benefit businesses. For one, President Obama encourages companies to bring back production inshore.
To do so, the White House plans to eliminate tax incentives to ship jobs offshore by ensuring that all American companies pay a minimum tax on their overseas profits, preventing other countries from attracting American business through unusually low tax rates. Also, they will eliminate the tax deduction companies receive for the cost of shutting down factories and moving production overseas, and create a new tax credit to cover moving expenses for companies that close production overseas and bring jobs back to the United States.
If companies begin to move production here, they will receive reduced tax rates and even double tax deduction for high-tech manufacturers. They will also support companies that make new investments in the communities hardest hit by major job losses. For exporters, the government will help businesses to be on an even footing with competitors overseas. Moreover, a trade enforcement unit will be created to stop unfair trade practices.
Built on Energy
“Over the last three years, we’ve opened millions of new acres for oil and gas exploration, and tonight, I’m directing my administration to open more than 75 percent of our potential offshore oil and gas resources, “said President Obama. He added that this country needs an all-out, all-of-the-above strategy that develops every available source of American energy – a strategy that’s cleaner, cheaper, and full of new jobs.
President Obama directed the Administration to ensure safe shale gas development that, according to independent estimates, will support more than 600,000 jobs by the end of the decade. These actions will include moving forward with common-sense new rules to require disclosure of the chemicals used in fracking operations on public lands.
Aside from shale gas, the President encouraged the development of clean energy sources, including renewable energy sources like wind, solar, biomass, hydropower, nuclear power, efficient natural gas, and clean coal through tax credits. The goal is by 2035, 80% of the nation’s electricity will come from these sources.
Fact is, many industries will be affected by these changes. Construction companies will have more projects (building plants and reconstructing old ones), technology businesses focused on energy will receive tax credits and increased transactions, manufacturing companies will enjoy tax incentives, retail businesses will profit, and more Americans will find jobs. Almost every industry will feel the domino effect of these proposed innovations.
If all these plans materialize, the value of manufacturing and energy related businesses will increase significantly. So if your company plans to buy a business for sale, it’s best to look into these industries now. Pursue these acquisition opportunities. Head over to Corporations4Sale.com and make your company one that is built to last.