NAM Regulatory Update: Congressional Tax Writers Unveil NAM-Supported Tax Deal

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

CALL FOR PROPOSALS: ADVANCED HYDRAULICS CONFERENCE at iVT EXPO USA

The National Fluid Power Association (NFPA) has entered into a partnership agreement with UKI Media & Events to convene and co-locate an advanced hydraulics conference for off-highway vehicle and fluid power engineers at iVT EXPO, to be held August 21-22, 2024, in Chicago, IL. iVT EXPO is an annual exposition for the off-highway vehicle design…

Read More about CALL FOR PROPOSALS: ADVANCED HYDRAULICS CONFERENCE at iVT EXPO USA

Sign Up Now to Attend the 2024 Fluid Power Vehicle Challenge Final Competitions

There is still time to register for April’s Fluid Power Vehicle Challenge Final Competitions. We need industry attendees to judge all aspects of the final competitions: the races, final presentations and vehicle design reviews. Industry attendees also participate in exclusive networking opportunities to recruit the next generation of talented engineers. Please register by March 1st.…

Read More about Sign Up Now to Attend the 2024 Fluid Power Vehicle Challenge Final Competitions

New Global Fluid Power Report and Forecast Available

A new series of quarterly forecast updates from Oxford Economics is now available on the NFPA website at Global Industry Forecasts.  These reports cover the global economy, as well as regional and country developments, and some detailed global industry forecasts.  Oxford predicts a slow first half of 2024 with US industrial output being particularly stagnate.…

Read More about New Global Fluid Power Report and Forecast Available