Administration Unveils U.S. Manufacturing Plan

WASHINGTON - The Obama administration will announce a push today for a $5-billion boost to a tax credit for green manufacturing, along with a seven-point plan to slow job losses at U.S. manufacturers, reported the Detroit Free Press.

The plans come as Vice President Joe Biden hosts business leaders this afternoon to talk about ways to boost jobs in a sector that employs fewer Americans now than it did in World War II.

The administration’s plans tout U.S. manufacturing as a source of strength for the economy in areas such as fuel-efficient vehicles and biotechnology. But the plan faces several tough hurdles to taking effect, including international trade, government spending and relations with China.

The $5 billion would come in addition to $2.3 billion already set aside for the credit as part of the $787-billion stimulus plan. The credit for 30% of a project's cost can be applied to technologies such as plug-in electric vehicles and batteries. The money isn't automatic; federal officials choose which projects can get the credit based on several criteria, including how many jobs they create.

The administration’s plan suggests a variety of moves to boost manufacturing, from better training for factory workers to opening overseas markets and defending patents and copyrights. It also calls for government aid to areas where manufacturing has retreated, leaving no replacement for crippled local economies.