With the signing of the 2021 Infrastructure Investment and Jobs Act, which includes the Build America, Buy America Act (BABA), the Biden administration reiterated a long-standing policy trend of "Made in America" laws. These regulations aim to prioritize and promote the production of goods within U.S. borders to foster national economic growth. The Buy American Act of 1933 (BAA) and Trade Agreements Act of 1979 (TAA) are the most widely recognized of the laws but are not the only domestic preference requirements.
Each regime has a slightly different take on what constitutes "Made in America," and whether the requirement prohibits the government from purchasing foreign products, the government should apply a preference, the contractor benefits from a tax credit, or otherwise.
This article, written by Joyce Tong Oelrich, provides an overview of domestic preference laws and manufacturing requirements for companies with overseas operations to help you assess your company's eligibility to receive funds through these channels. Given the complexity of the determination, many factors will influence which regulations apply and how to comply with each – use the analysis as a starting point for internal discussion regarding domestic preferences.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.