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
NFPA to Present “Digital Fluid Power – Advances & Controls in Hydraulics & Pneumatics” at AUTOMATE on May 8
NFPA members are encouraged to attend the AUTOMATE trade show, to be held May 6-9, 2024 in Chicago, IL. As part of our efforts to provide an effective forum for our members to connect with key end markets in fluid power, NFPA will be organizing a panel discussion on “Digital Fluid Power” on the AUTOMATE…
NFPA Surveys as Leading Indicators
Looking for a strong leading indicator to help plan forward over the next couple quarters? Look no farther than the NFPA State of Fluid Power Industry Survey (SOFP). SOFP is easy to participate in each month; more importantly, the results are powerful. Just answer a few quick opinion-based questions via an online survey. The SOFP…
NAM Regulatory Update: Manufacturers | Unprecedented Use of CERCLA Authority Will Hamper President’s Manufacturing Vision
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. These chemicals are sometimes present in hydraulic fluids. Following the release…