{"id":946,"date":"2025-04-11T17:23:03","date_gmt":"2025-04-11T17:23:03","guid":{"rendered":"https:\/\/lightingnewsnow.com\/?p=946"},"modified":"2025-04-12T14:23:38","modified_gmt":"2025-04-12T14:23:38","slug":"fanimation-president-advocates-for-temporary-tax-credit-to-ease-tariff-burden","status":"publish","type":"post","link":"https:\/\/lightingnewsnow.com\/?p=946","title":{"rendered":"Fanimation President Advocates for Temporary Tax Credit to Ease Tariff Burden, Rallies Industry for Support"},"content":{"rendered":"\n

This week, Nathan Frampton, CEO of Fanimation<\/a>, released a public memo to the lighting and ceiling fan community, calling for industry support on a proposal for a temporary tax credit to counteract the recently imposed tariffs on China.<\/p>\n\n\n\n

Frampton\u2019s interest is rooted in the fact that nearly all residential ceiling fans sold in the U.S. are manufactured in China due to the country\u2019s scale and infrastructure advantages. \u201cWhile there is some limited production in Vietnam, Cambodia, Malaysia, and Taiwan, I estimate this accounts for less than 5% of the U.S. market,\u201d he said.<\/p>\n\n\n\n

In effort to reduce the negative effects on price that the reciprocal tariff on Chinese goods would have on ceiling fan retailers and their customers, Frampton \u2013 who has a background in accounting  \u2013 has researched alternatives that might be viable.<\/p>\n\n\n\n

In his memo to the industry, he stated, \u201cAs a long-time participant in the American manufacturing sector, I believe it is time for our industry to take a proactive and unified stance on the issue of supply chain dependence on China. While we recognize the strategic imperative of decoupling, the path forward must be both realistic and economically viable. I propose that we advocate for federal legislation that provides a temporary tax credit equal to the tariffs paid on imports from China. This credit would serve as a transitional tool, enabling companies to reinvest those funds into reshoring, nearshoring, or developing alternative sourcing strategies without immediate financial disruption.\u201d<\/p>\n\n\n\n

According to Frampton, this proposal reflects the broader policy direction embraced by both Congress and the American public. \u201cOur industry must acknowledge this shift and prepare accordingly. By aligning ourselves with this national objective \u2013 while also advocating for a practical, time-bound support mechanism \u2013 we can protect jobs, stabilize pricing, and position our companies for long-term competitiveness. I welcome feedback and collaboration from industry partners and stakeholders who share this vision and are interested in advancing a thoughtful, actionable plan.\u201d<\/p>\n\n\n\n

I asked Nathan Frampton if he could detail his plan for our readership, and he agreed.<\/p>\n\n\n\n

LL: What is the biggest obstacle to manufacturing ceiling fans in the U.S.?<\/strong><\/p>\n\n\n\n

NF:<\/strong> The biggest obstacle is the lack of a fully developed supply chain and a skilled labor force. Ceiling fans are complex, multi-component products requiring motors, blades, stamped and die-cast parts, electronics, and specialized packaging. Those supplier networks no longer exist in the U.S. at scale. Even with automation, rebuilding the infrastructure would take massive capital investment \u2014 and even then, we don\u2019t have enough labor. We\u2019re not just missing engineers or specialists, we\u2019d need a very large pool of unskilled labor, which doesn\u2019t currently exist.<\/p>\n\n\n\n

Unlike categories like textiles that can rely on domestic raw materials, ceiling fans require a range of imported inputs and precision manufacturing. They also occupy a price-sensitive space, where margins can\u2019t easily absorb significant cost increases. That\u2019s what makes domestic production difficult for our category.<\/p>\n\n\n\n

LL: Has the strategy you are proposing been successful in other industries before?<\/strong><\/p>\n\n\n\n

NF:<\/strong> To be honest, I\u2019m not sure if this exact tax credit structure \u2013 where companies get credit for the actual tariffs they pay \u2013 has been done before, but the underlying concept isn\u2019t new. We\u2019ve seen targeted tax credits used effectively in other sectors to support strategic shifts \u2014 like the clean energy space with Section 48C. My proposal applies that same principle to our current trade environment.<\/p>\n\n\n\n

What makes this different is the simplicity: companies are already paying these tariffs. Instead of letting that money disappear into the federal budget, we\u2019re saying give businesses the ability to redirect it toward building new supply chain solutions. It\u2019s a practical, market-driven approach that supports national trade goals without asking for new federal spending. Of course, the easy thing would be to simply suspend the tariffs for a period of time to give us room to transition. <\/em>While cashflow may be impacted, my proposal gives us a path forward without having to fight the broader momentum toward decoupling.<\/p>\n\n\n\n

LL: What would it take for ceiling fan manufacturing to return to the U.S.?<\/strong><\/p>\n\n\n\n

NF:<\/strong>\u00a0Bringing ceiling fan manufacturing back would take a lot of time and a lot of investment. We\u2019d need to rebuild tooling, reestablish domestic supply chains, and develop a workforce capable with the necessary skill sets.\u00a0It\u2019s important that everyone understands that none of these things exist at scale domestically. Even with automation, we are simply not there yet. Trying to do so quickly would push costs far beyond what most consumers would be willing to pay.<\/p>\n\n\n\n

That\u2019s why this proposal isn\u2019t solely focused on reshoring. It\u2019s about giving companies the flexibility to decouple from China in a way that makes sense for them. One option is shifting sourcing to Southeast Asian partners like Vietnam, Cambodia, Malaysia, and Taiwan. Those regions are more aligned with U.S. interests, and we expect better trade terms moving forward. The tax credit gives companies time and space to make smart, long-term sourcing decisions.<\/p>\n\n\n\n

LL: In your memo, you mention, \u201cthis proposal reflects the broader policy direction embraced by both Congress and the American public.\u201d Can you explain this further?<\/strong><\/p>\n\n\n\n

NF:<\/strong> The direction was made clear during President Trump\u2019s first term, when his administration implemented broad tariffs and aggressively pushed to reduce U.S. reliance on China. That policy \u2013 decouple or negotiate stronger terms \u2013 was a defining feature of his trade agenda. He made it clear he intended to pursue that even more forcefully if re-elected. Voters knew that. By supporting him once \u2013 and again \u2013 they\u2019ve effectively endorsed that direction.<\/p>\n\n\n\n

This proposal is consistent with that policy. It doesn\u2019t fight the momentum; it provides a responsible, business-friendly path to move in the same direction. It allows manufacturers to transition out of China without chaos \u2014 and without having to absorb the full cost of doing it overnight.<\/p>\n\n\n\n

LL: What part can the American Lighting Association (ALA) play in making this proposal a reality?<\/strong><\/p>\n\n\n\n

NF:<\/strong> Congress listens closely to national associations, especially when they represent a united industry voice. That said, I believe we need an all-of-the-above strategy. That means ALA playing a leading role, while individual companies also speak out and aligned coalitions push similar solutions.<\/p>\n\n\n\n

My expectation is that ALA will support a plan like this and ultimately join forces with other industries facing the same challenge. When we combine the strength of a national association with direct company voices and broader coalitions, we have a much better chance of shaping meaningful policy.<\/p>\n\n\n\n

LL: How can industry members follow your advice to \u201calign ourselves with this national objective\u201d in order to \u201cprotect jobs, stabilize pricing, and position our companies for long-term competitiveness?\u201d<\/strong><\/p>\n\n\n\n

NF:<\/strong> It starts by recognizing that the shift away from China is already happening. Aligning with that direction is not only patriotic \u2014 it\u2019s smart business. Industry members can help by supporting pragmatic solutions that allow for a smooth transition, like the tax credit I\u2019m proposing.<\/p>\n\n\n\n

That means contacting the American Lighting Association to voice support for a plan like this [even if you are not a member of the association]. The stronger the response, the stronger ALA\u2019s voice will be in Washington. And beyond that, I encourage companies to contact their senators, representatives, and the White House directly. These messages don\u2019t have to be complicated \u2014 but they should be direct. Lawmakers need to hear from business leaders who are navigating this transition and offering workable solutions. Each of our voices can make an impact!<\/em><\/p>\n\n\n\n

LL: What are the next steps that industry members need to do?<\/strong><\/p>\n\n\n\n

NF:<\/strong> Build visible support and momentum. Start by emailing ALA leadership to express your support for this type of solution. Then take the time to reach out to your federal elected officials \u2014 congressional contacts are easy to find online. The more voices they hear on this issue, the more weight it carries.<\/p>\n\n\n\n

Meanwhile, I\u2019ll continue coordinating with ALA and other stakeholders to refine the proposal and build alignment with broader business coalitions. If anyone is interested in contributing to that effort, I\u2019d welcome the collaboration. The sooner we move, the better positioned we\u2019ll be to influence what happens next.<\/p>\n\n\n\n

Related articles<\/strong><\/p>\n\n\n\n

How Will Tariffs on China & Canada Affect Showroom Buying Habits?<\/a><\/p>\n\n\n\n

Fanimation\u2019s Nathan Frampton Raises the Alarm to All Ceiling Fan & Lighting Companies Manfacturing Overseas About Reciprocal Tariffs   <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This week, Nathan Frampton, CEO of Fanimation, released a public memo to the lighting and ceiling fan community, calling for industry support on a proposal for a temporary tax credit to counteract the recently imposed tariffs on China. Frampton\u2019s interest is rooted in the fact that nearly all residential ceiling fans sold in the U.S. are…<\/p>\n","protected":false},"author":2,"featured_media":953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":251,"footnotes":""},"categories":[11],"tags":[254,252,164,132,253],"class_list":["post-946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-ceiling-fans","tag-fanimation","tag-nathan-frampton","tag-tariffs","tag-tax-credit"],"yoast_head":"\nFanimation President Advocates for Temporary Tax Credit to Ease Tariff Burden, Rallies Industry for Support - Lighting News Now<\/title>\n<meta name=\"description\" content=\"Nathan Frampton of Fanimation released a memo calling for support on a proposal for a temporary tax credit to counteract the tariffs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lightingnewsnow.com\/?p=946\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fanimation President Advocates for Temporary Tax Credit to Ease Tariff Burden, Rallies Industry for Support - 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