As part of an effort to bring more information about the regulatory and legal environment facing American manufacturers, NFPA is monitoring the newsfeed of the National Association of Manufacturers (NAM) and will be bringing important updates like this to the attention of NFPA members.
On Tuesday, January 16, 2024, Congress took an important step toward restoring three of manufacturers’ top tax priorities, as key congressional leaders unveiled a bipartisan tax agreement long sought by the NAM.
What’s going on: The $78 billion Tax Relief for American Families and Workers Act—a compromise between House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR)—would restore immediate R&D expensing, return to a pro-growth interest deductibility standard and reinstate full expensing (also known as 100% accelerated depreciation) for businesses’ capital investments.
The framework also includes disaster tax relief and $33 billion to partially extend a child tax credit expansion from 2021.
The background: For nearly seven decades, the tax code allowed businesses to deduct R&D costs immediately. But starting in 2022, a change required companies to amortize the costs over a period of years.
Also in 2022, a stricter interest limitation—which acts as a tax on investment—went into effect. And last year, full expensing began to phase down.
The NAM’s role: The NAM was instrumental in the deal, having made the business case for the tax provisions’ reinstatement to lawmakers for many months, including via an ad campaign, “Keep America Resilient.”
What’s next: The NAM is urging congressional leadership to schedule a vote on the tax deal. Manufacturers can add their voices at the NAM’s Tax Action Center. (Link: https://nam.org/competing-to-win/tax/?utm_source=533172&utm_medium=email)
Our take: “Manufacturers appreciate Chairman Smith and Chairman Wyden’s work to reach a bipartisan tax deal with key provisions to advance U.S. economic competitiveness and support manufacturing job creation,” NAM Managing Vice President of Policy Chris Netram said in a social post Tuesday.
“Congress must move this legislation forward immediately. The time to act is now.”
Recent Posts
Allison Forsythe Speaks About the Value of Participating in Standards Development
We’re excited to share a new onboarding video from Allison Forsythe, your Standards and Program Manager at the National Fluid Power Association (NFPA). In this video, Allison highlights the important work we’re doing in standards development and how you can get involved. At NFPA, we manage both domestic and international standards, including those through the…
Enhance Your 2025 NFPA Annual Conference Experience By Bringing a Guest
2025 NFPA Annual ConferenceFebruary 25-27, 2025Tucson, AZRegistration Now Open The 2025 NFPA Annual Conference is not just about professional growth—it’s an opportunity to connect with your peers, your industry, and even your loved ones. As always, we’re offering an inviting Spouse/Guest Program that encourages you to bring someone special along to share in this experience.…
NFPA Executive Leadership Program Dives into the Art of Negotiation
The NFPA Executive Leadership Program is an in-depth and interactive program that helps emerging leaders in the fluid power industry develop their network and advance their management and leadership skills through tailored content. Its sessions are presented in collaboration with the Kellogg School of Management at Northwestern University, with Kellogg faculty helping to curate interactions among…