Hillary Clinton focuses on GOP at first primary face-off of 2016 in Iowa

Democratic presidential candidate Hillary Rodham Clinton speaks during the Iowa Democratic Party's Hall of Fame Dinner, Friday, July 17, 2015, in Cedar Rapids, Iowa. (AP Photo/Charlie Neibergall)

Alabama communities hit hard by manufacturing plant closings or layoffs would benefit under a new tax credit being proposed by Hillary Clinton aimed at incentivizing investment in areas suffering manufacturing job losses.

"My plan will help spur reinvestment in communities right here in Alabama that have lost jobs because of factory closures," Clinton said in a statement provided by her campaign. "By strengthening our manufacturing sector for the future, we can help create the next generation of good-paying jobs and put more people back to work in Alabama and across the country."

The Democratic front-runner's plan, unveiled Tuesday, would create a 'Manufacturing Renaissance Tax Credit" that would go to eligible communities depending on whether manufacturing plant closing or layoffs are "likely to be permanent" and whether the lost jobs "would have negative downward impact on the community, in combination with the broader economic conditions of that community."

Communities could opt not to receive the tax credit and instead allow investors not to pay capital gains taxes if they invest in job creation for more than five years.

U.S. Rep. Terri Sewell, D-Birmingham, an early endorser of Clinton, said the former secretary of state's proposal would benefit Alabama. Since the beginning of the year, there have been 14 plant closings or layoffs in the state, according to the Alabama Department of Economic and Community Affairs.

"A strong manufacturing sector is crucial for our nation's economic growth and prosperity. I am proud to stand by Hillary Clinton and recognize her commitment to creating good paying jobs in Birmingham, and across the state of Alabama," Sewell said in a statement. "Manufacturing has been the backbone of Alabama's economy for generations. We cannot afford to lose another job or another industry to another country. Clinton's plan to jump start redevelopment is something every Alabamian should support in order to keep good paying jobs right here at home."

Clinton's push for the tax credit is fueled by her belief that manufacturing jobs support middle-class wages, pointing out that such jobs pay between 8 and 20 percent higher than other industries. About 12 million Americans have a manufacturing job, and the industry supports another 17 million jobs.