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The House of Representatives has passed H.R. 1, the One Big Beautiful Bill Act, which includes crucial pro-manufacturing provisions that the NAM has long advocated.

The NAM says: “This pro-growth legislation preserves crucial tax policies that will enable manufacturers to create jobs, invest in their communities, grow here at home and compete globally. In short, this is a manufacturers’ bill,” said NAM President and CEO Jay Timmons.

• “Manufacturers commend House Speaker Mike Johnson, House Majority Leader Steve Scalise, House Ways and Means Committee Chairman Jason Smith and the House for advancing this critical legislation, and we urge the Senate to act swiftly to build on this momentum.”
• “The stakes are high: preserving tax reform will prevent the loss of 6 million jobs and avoid a $1 trillion hit to the economy. Manufacturers urge the Senate to maintain the pro-manufacturing policies in the House bill while continuing to work with manufacturers to ensure the final package is maximally effective at supporting manufacturing investment here in the U.S.”
• “This is a pivotal moment. It’s time to double down on policies that encourage manufacturers to invest and create jobs in America and keep our industry strong and our nation competitive on the world stage—because when manufacturing wins, America wins.”   

What’s in it: The NAM got what it asked for in this legislation, which will:

• Increase the pass-through deduction for small and medium-sized manufacturers and make this important deduction permanent, freeing up capital for businesses to invest and create jobs;
• Make permanent the competitive individual tax rates established by tax reform, benefiting the 96% of manufacturers organized as pass-throughs that pay tax at these rates;
• Increase and make permanent tax reform’s estate tax exemption, protecting more family-owned manufacturers’ assets from the estate tax;
• Reinstate immediate R&D expensing, reducing the costs of groundbreaking research and supporting innovation across our sector;
• Revive full expensing for capital equipment purchases, enabling manufacturers to purchase new machinery and expand their shop floors;
• Restore a pro-growth interest deductibility standard, enhancing manufacturers’ ability to pursue job-creating projects;
• Create an incentive for manufacturers’ investments in new and refurbished facilities, supporting factory construction here in the U.S.;
• Preserve tax reform’s international tax system by making the FDII, GILTI and BEAT regimes permanent, enhancing America’s competitiveness on the world stage; and
• Protect the 21% corporate tax rate, ensuring America remains the best place for manufacturing investment and job creation.

More NAM advocacy: Timmons, NAM Board leadership and leaders of the NAM’s Conference of State Manufacturers Associations and Council of Manufacturing Associations urged House lawmakers to support the bill ahead of the vote.

Next steps: There is more to do in the Senate, and the NAM will be working hard to ensure the final legislation covers all of manufacturers’ priorities.