Tax

Washington, D.C. – Following House final passage of the tax bill, National Association of Manufacturers President and CEO Jay Timmons issued the following statement:

“Today marks a historic victory for the 13 million people who make things in America. This is a manufacturers’ bill—through and through.

“None of this was inevitable. It’s the result of years of serious, sincere partnership between our nation’s manufacturers and our elected leaders. From the shop floors of small businesses to the headquarters of global companies, from plant managers and line workers to members of Congress and the administration, this achievement reflects what’s possible when policymakers choose to work with manufacturers.

“Manufacturers are especially grateful to President Trump, Vice President Vance, Speaker Johnson, Majority Leader Scalise, Majority Whip Emmer, Conference Chair McClain and Ways and Means Chairman Smith for their steadfast leadership. Their commitment to our industry—and to the men and women who make things in America—was essential to get this done. They listened to manufacturers, stood by us and delivered real results.”

“When leaders partner with manufacturers, good things happen for our country—because manufacturing is nonpartisan and bipartisan. To invest in manufacturing is to invest in America—in communities in every state and of every size. While this bill passed on a party-line vote, manufacturers all across America, in red states and blue states, swing districts and safe districts, look forward to putting people to work, more factories into motion, more innovation into the market, more products onto our shelves and more prosperity into our communities. Taken together, this strengthens the hand of the United States on the world stage. That’s exactly what this bill helps to deliver.

“This Congress and this administration understand that a stronger manufacturing sector means a stronger America. We will continue to work with our nation’s leaders to realize and celebrate the benefits of a comprehensive manufacturing strategy that includes not only further tax reforms but also trade, energy, workforce development and modernized regulations.

“Because one of the greatest investments our leaders can make for the American people is an investment in manufacturing—the industry that powers our shared prosperity.”

Background

Prior to final passage, the NAM activated manufacturers in America—engaging shop floor workers, plant managers, executives and state and local partners nationwide­—as part of the “Manufacturing Wins” campaign. With a coordinated public advocacy campaign, which included outreach to congressional offices both in district and in Washington, targeted social media drives, video testimonials and local media op-eds, the NAM made the case for this bill directly to members of Congress and the American people. These collective voices underscored how preserving and expanding key tax provisions translates into growing businesses, creating jobs and powering stronger communities.

On Monday, more than 300 manufacturing leaders from across the country signed onto a letter urging Congress to act immediately to pass historic tax legislation that will enable manufacturers in America to thrive. Leading up to the vote, manufacturers from across the country joined the NAM in a full-court press on Capitol Hill, including a key meeting with Deputy Treasury Secretary Michael Faulkender. They delivered one message: get this across the goal line for American jobs.

In January, the NAM released a landmark EY study on the economic consequences of failing to renew the pro-manufacturing provisions of the Tax Cuts and Jobs Act by the end of 2025. The NAM was joined by Senate Finance Committee Chairman Mike Crapo (R-ID), House Ways and Means Committee Chairman Jason Smith (R-MO) and House Majority Leader Steve Scalise (R-LA) for a Capitol Hill press conference highlighting the study.

Key facts on the economic consequences of failing to preserve tax reform:

• 5.9 million lost jobs
• $540 billion reduction in employee compensation
• $1.1 trillion shortfall in U.S. GDP

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

With the House’s passage of landmark legislation that preserves pro-manufacturing tax policies, the NAM has achieved a crowning victory after nearly a decade of nonstop advocacy.

• This achievement is “the result of years of serious, sincere partnership between our nation’s manufacturers and our elected leaders,” said NAM President and CEO Jay Timmons.
• “From the shop floors of small businesses to the headquarters of global companies, from plant managers and line workers to members of Congress and the administration, this achievement reflects what’s possible when policymakers choose to work with manufacturers.”

The first time around: During his first term, President Trump laid out his vision for tax reform at an NAM board meeting in 2017, and the NAM’s and manufacturers’ tireless efforts helped make that vision a reality in the form of the Tax Cuts and Jobs Act.

• Following the passage of the 2017 law, manufacturers made huge investments in their workforces, facilities and communities, as well as in innovation and research and development.
• The numbers tell the tale: in 2018, manufacturing in the United States achieved its best year in job creation in more than two decades, the best wage growth in 15 years and impressive growth in capital spending, which increased by 4.5% in 2018 and by 5.7% in 2019, as NAM research showed.
• Scores of manufacturers spoke out about the transformative effects of tax reform after it went into effect, in an NAM series titled “Keeping Our Promises.”

The second time: These crucial tax provisions began phasing out starting in 2022, threatening manufacturers’ investments and plans for future growth. So the NAM never stopped its advocacy, laying the groundwork for legislation that would make these important reforms permanent.

• While still a nominee, President Trump spoke at the NAM board meeting again in fall 2024, reaffirming his commitment to his signature legislation and to the manufacturing industry itself.
• Immediately after the 2024 election, the NAM began working closely with the new Trump administration and Congress, unrelentingly promoting manufacturers’ priorities and ensuring that today’s legislative victory would take place.

The NAM retakes the stage: Among the NAM’s many advocacy activities in the past several months—too many to list here—were hundreds of meetings with lawmakers and administration officials, dozens of elected officials hosted on shop floors around the country, thousands of messages and articles, several large-scale ad campaigns and daily social media advocacy and engagement with the White House’s own social media team.

• This effort, known as the “Manufacturing Wins” campaign, highlighted the words and experiences of shop floor workers, plant managers, executives and state and local partners nationwide.
• The NAM also revisited its “Keeping Our Promises” series in a recent report, in which the same manufacturers who spoke out years ago highlight the considerable increases in investments and growth they have seen since then.

Highlighting costs: The NAM also released a celebrated and widely cited study with EY about the costs of letting tax reform lapse, showing lawmakers that these would include 5.9 million lost jobs, a $540 billion reduction in employee compensation and a $1.1 trillion shortfall in U.S. GDP.

• In a high point of its advocacy campaign, several top congressional leaders joined the NAM at an event on Capitol Hill spotlighting the study, including House Speaker Mike Johnson (R-LA), House Majority Leader Steve Scalise (R-LA), House Majority Whip Tom Emmer (R-MN), House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Mike Crapo (R-ID).

Stepping into the spotlight: NAM member companies testified at more than a half dozen congressional hearings on tax reform, highlighting the manufacturing sector’s need for pro-growth tax policy.

• Witnesses included NAM Small and Medium Manufacturers Group Chair Karl Hutter (Click Bond), NAM SMM Vice Chair Austin Ramirez (Husco), NAM SMM Immediate Past Chair Courtney Silver (Ketchie), NAM Board Member Lisa Winton (Winton Machine), NAM Executive Committee Member Chuck Wetherington (BTE Technologies), Steve Sukup (Sukup Manufacturing) and Tom Tredway (Erie Molded Packaging).

Never give up: In April, the NAM partnered with Majority Whip Emmer, Chairman Smith and Treasury Secretary Scott Bessent along with a dozen members of the Ways and Means Committee to host more than a dozen manufacturers to ensure policymakers’ focus remained on bill passage.

The final push: In the past week leading up to the final votes, manufacturers made an unforgettable impact on lawmakers, with nearly 50 shop floor workers flying into Washington, D.C., to visit Capitol Hill offices in person and meet with Deputy Treasury Secretary Michael Faulkender.

• Many more signed an important letter to Senate and House leaders—with a total of 300 executives giving voice to the industry’s needs.

The win: Today, all that effort—thousands of hours spent by thousands of people at every level of the manufacturing industry throughout the country—has finally paid off.

• “Manufacturers are especially grateful to President Trump, Vice President Vance, Speaker Johnson, Majority Leader Scalise, Majority Whip Emmer, Conference Chair McClain and Ways and Means Chairman Smith for their steadfast leadership,” Timmons said.
• “Their commitment to our industry—and to the men and women who make things in America—was essential to get this done. They listened to manufacturers, stood by us and delivered real results.”

The NAM looks ahead: “To invest in manufacturing is to invest in America—in communities in every state and of every size,” Timmons continued.

• “While this bill passed on a party-line vote, manufacturers all across America, in red states and blue states, swing districts and safe districts, look forward to putting people to work, more factories into motion, more innovation into the market, more products onto our shelves and more prosperity into our communities. Taken together, this strengthens the hand of the United States on the world stage. That’s exactly what this bill helps to deliver.”
• “This Congress and this administration understand that a stronger manufacturing sector means a stronger America. We will continue to work with our nation’s leaders to realize and celebrate the benefits of a comprehensive manufacturing strategy that includes not only further tax reforms but also trade, energy, workforce development and modernized regulations.”
• “Because one of the greatest investments our leaders can make for the American people is an investment in manufacturing—the industry that powers our shared prosperity.”

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Washington, D.C. – Following Senate passage of the tax bill, National Association of Manufacturers President and CEO Jay Timmons issued the following statement:

“The Senate just pushed the ball deep into the red zone. Now it’s the House’s turn to finish the drive and deliver a big win for manufacturers in America. The Senate advanced a tax package that will strengthen small businesses, family-owned operations and manufacturing workers across the country. It drives manufacturers closer to the goal line—growing businesses, creating jobs and powering stronger communities.

“After months of driving, months of endurance and effort, months of playing audacious offense and tenacious defense, months of partnership between manufacturers of every industry and our leaders in Congress and the administration, the House now can finish the job. We call on our partners in the House to send this bill to the president’s desk—the strongest tax bill for manufacturers we have seen in a generation. Because when Congress champions the 13 million people who make things in America, manufacturing wins—and when manufacturing wins, America wins.”

Background

A full-team push: Today, more than 300 manufacturing leaders from across the country signed onto a letter urging Congress to act immediately to pass historic tax legislation that will enable manufacturers in America to thrive. Leading up to the vote, manufacturers from across the country joined the NAM in a full-court press on Capitol Hill, including a key meeting with Deputy Treasury Secretary Michael Faulkender. They delivered one message: get this across the goal line for American jobs. Watch the recap.

Calling the plays: Timmons appeared on Bloomberg’s “Balance of Power” urging passage to give manufacturers the certainty they need to keep building and investing.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org

Congress should pass H.R. 1—the tax bill—immediately, manufacturers told congressional leaders Monday.

What’s going on: The tax package delivers on the promise made by the administration and Congress “to ensure the United States leads the world in manufacturing,” the NAM and more than 300 manufacturing leaders told Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA).

• The legislation extends and makes permanent the pro-growth provisions from the 2017 Tax Cuts and Jobs Act, which proved to be “rocket fuel” for the manufacturing industry.
• Many of the measures from the TCJA have expired, and others are scheduled to sunset at the end of this year—unless Congress acts.

What it does: H.R. 1 extends key measures from the TCJA “and builds on their success,” the NAM and its allies said. Here’s what the bill does:

• Provides tax certainty for small manufacturers: The bill “permanently extends the 20% pass-through deduction and preserves the TCJA’s individual tax rates, both of which are crucial for the 96% of small manufacturing businesses organized as pass-throughs.” It also protects small family-owned manufacturers from the estate tax.
• Supports investment and innovation: The measure restores immediate research-and-development expensing, full expensing for capital equipment purchases and an EBITDA-based interest deductibility standard.
• Bolsters American competitiveness: The bill makes the FDII, GILTI and BEAT international tax regimes permanent and preserves the 21% corporate rate.
• Incentivizes growth: H.R. 1 creates a new deduction that allows companies to immediately expense the cost of new factories and the cost of improvements to current facilities, among other moves.

The precedent: Manufacturers know the pro-growth tax policies in the legislation will work because they’ve worked before, the NAM and manufacturing leaders told the House and Senate.

• “Following passage of the Tax Cuts and Jobs Act, manufacturing in the United States secured the best year in job creation in more than two decades, the best wage growth in 15 years and impressive growth in capital spending, increasing by 4.5% in 2018 and by 5.7% in 2019.”

The cost of inaction: Failure to pass the legislation would result in a nationwide loss of 5.9 million jobs, $540 billion in wages and $1 trillion in GDP, according to a recent NAM study.

Amplifying the NAM message: The message was amplified quickly on social media by key decision makers, including the White House, Speaker Johnson and House Majority Whip Tom Emmer (R-MN).

The Senate handed manufacturers a victory this week when it passed President Trump’s critical tax legislation. Now it’s time for the House to seal the deal.

What’s going on: “The Senate advanced a tax package that will strengthen small businesses, family-owned operations and manufacturing workers across the country,” NAM President and CEO Jay Timmons said today. “It drives manufacturers closer to the goal line—growing businesses, creating jobs and powering stronger communities.”

• The legislation extends, makes permanent and restores expired measures from the manufacturing-boosting 2017 Tax Cuts and Jobs Act.
• President Trump has urged Congress to get the bill to his desk by Friday, July 4.

Powerful partnerships: The Senate’s passage of the bill follows months of hard work by manufacturers. Last week, the NAM and nearly 40 manufacturing leaders from across the U.S. flew to Washington for three days of high-level meetings with the White House and Congress, urging passage of the legislation.

• Manufacturers “took to Capitol Hill to make their voices heard on a critical issue: getting the tax bill to the president’s desk,” the NAM wrote in a social post shared by numerous congressional leaders and the White House’s official X account. “Hear from manufacturers on why Congress needs to act now.”

What’s next: “The House now can finish the job,” Timmons continued. “We call on our partners in the House to send this bill to the president’s desk—the strongest tax bill for manufacturers we have seen in a generation. Because when Congress champions the 13 million people who make things in America, manufacturing wins.”

Washington, D.C. – In advance of the Senate vote on passage of the tax bill, NAM President and CEO Jay Timmons issued the following statement:

“This is a manufacturers’ bill—through and through. It reflects the priorities that manufacturers across the country have long championed: policies that drive growth, boost competitiveness, strengthen communities and support good-paying jobs.

“This bill is strong because the partnership behind it is strong. Our nation’s leaders have listened to America’s manufacturers—positioning our industry to lead and succeed like never before. And that means more prosperity for the United States. With enthusiasm for this achievement and gratitude for our advocates in Congress, we call on our partners in the Senate to finish the job.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

For three jam-packed days this week, the NAM and 39 manufacturers from across the U.S. took to Capitol Hill to make their voices heard on a critical issue: getting the One Big Beautiful Bill Act to President Donald Trump’s desk by a July 4 deadline.

What’s going on: Manufacturing leaders from Florida, North Carolina, Texas, Indiana, South Carolina and Minnesota—representing 29 manufacturing businesses—gathered in Washington Monday to emphasize to members of the House, Senate and administration the economic stakes of inaction on the OBBBA.

• At approximately 50 meetings with decision makers on the Hill—including one with Deputy Treasury Secretary Michael Faulkender—the NAM-led manufacturer contingent pointed repeatedly to  NAM data projecting the loss of 1.1 million manufacturing jobs and $284 billion in output if the OBBBA isn’t passed.
• The NAM-led visit and meetings were covered by POLITICO Pro’s Morning Tax newsletter, among other outlets.

Roundtable: The Treasury Department hosted the group Thursday morning for a roundtable discussion on the scheduled expiration of several important, pro-growth tax provisions.

• Treasury staffers sought firsthand accounts of how the 2017 Tax Cuts and Jobs Act—extensions of which are in the OBBBA—helped manufacturers. They also asked for stories illustrating how the sunsetting of the TCJA measures, which began in 2022, has harmed manufacturing businesses.
• NAM President and CEO Jay Timmons thanked the administration for its continued commitment to manufacturing nationwide, adding that the real-world stories from the group and perspectives the members shared during the roundtable would help inform ongoing discussions with both Congress and the White House.

The details: During the roundtable, manufacturers detailed how the TCJA fueled capital investments, hiring, and innovation—momentum that could stall without congressional action.

• Manufacturers pointed to the critical role of provisions, including immediate research-and-development expensing, full expensing for capital equipment purchases and interest deductibility—in driving product development and facility expansion.
• Business owners hammered home the need to make these measures permanent and as beneficial as possible for manufacturers to support long-term planning and continued innovation.

Lifesaving measures: Leadership from a company in the medical technology sector noted that uncertainty in R&D expensing could delay lifesaving advancements.

• Another manufacturer, whose company makes safety equipment, described how the loss of the full expensing provisions would affect safety investments on shop floors.
• Other manufacturers highlighted post-2017 growth in facility buildouts and acquisitions that now hang in the balance thanks to uncertainty surrounding the TCJA provisions’ continuation.

Reinforcing a three-part tax policy agenda: The Treasury event reinforced the NAM’s three-part tax policy agenda, which consists of the following:

• Protecting small business incentives, such as the pass-through deduction and estate tax relief
• Restoring pro-investment provisions, such as R&D expensing and interest deductibility
• Maintaining the competitive 21% corporate tax rate and the TCJA’s international tax regime

Treasury’s take: Deputy Treasury Secretary Faulkender  spoke at length about the roundtable with Bloomberg TV.

• “We had a great conversation with Jay and a number of his members today to understand exactly how factories around this country would be impacted if we do not get this bill over the finish line, and to talk about not just the benefits we saw after the 2017 act, but some of the new provisions that are in this bill, and how it would impact the investments that they make,” Faulkender said. “We know full well failure is not an option.”

In a move the NAM called  “a massive triumph for manufacturing in America,” the Treasury Department on Thursday announced a deal with G-7 allies to exempt American companies from certain taxes imposed by other nations—resulting in Congress and the administration agreeing to remove from the “One Big Beautiful Bill Act” a U.S. tax on companies from those countries.

What’s going on: “Today’s deal is a win for manufacturing and a win for America,” said NAM President and CEO Jay Timmons. “Manufacturers have long raised concerns about the overreaching and extraterritorial nature of OECD Pillar 2.”

• Pillar 2 of the Organisation for Economic Co-operation and Development introduces a global minimum 15% corporate tax rate, which it allows other countries to collect if companies’ home nations do not.
• Under the terms of the deal announced Thursday, Pillar 2 taxes will not apply to U.S. companies, paving the way for the elimination of the Section 899 retaliatory tax from Congress’s reconciliation bill.
• The 899 provision would have allowed the U.S. to impose retaliatory taxes on companies from countries with punitive tax policies, including the ones in the OECD regime.

What it will do: The move means manufacturers of all sizes will be relieved of the threat of damaging tax burdens, the NAM said, as domestic businesses will no longer face the threat of Pillar 2 and foreign-headquartered companies will not be impacted by Section 899.

What’s next: “It’s now time for the Senate to vote and for the House to send this bill to President Trump’s desk by July 4,” Timmons said.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons issued the following statement thanking President Donald Trump and Secretary Scott Bessent for achieving a monumental deal with G-7 allies that the OECD Pillar 2 taxes will not apply to U.S. companies, laying the groundwork to remove the harmful Section 899 proposal from the pro-manufacturing One Big Beautiful Bill Act:

“In a massive triumph for manufacturing in America, Treasury Secretary Bessent announced a deal to protect both domestic and foreign-headquartered manufacturers investing in the United States from oppressive, job-killing taxes. The NAM—which yesterday brought together manufacturers of all sizes to meet with Deputy Secretary Michael Faulkender to discuss the importance of countering OECD Pillar 2 and preventing the harm of Section 899—congratulates President Trump for this outstanding deal.

“Today’s deal is a win for manufacturing and a win for America. Manufacturers thank Secretary Bessent, Deputy Secretary Faulkender and the Trump administration for reaching this historic deal to shield manufacturers in America from damaging foreign taxes that unfairly stifle job creation in the U.S.

“Manufacturers have long raised concerns about the overreaching and extraterritorial nature of OECD Pillar 2. We greatly appreciate Chairman Jason Smith and Chairman Mike Crapo for their commitment to defending manufacturers in the U.S. from discriminatory foreign taxes. Companies of all sizes across our industry will benefit from the Trump administration removing the threat of these damaging tax burdens.

“Today’s announcement also paves the way for the House and the Senate to lift the threat that Section 899 poses to foreign-headquartered manufacturers’ ability to invest and create jobs in America. Manufacturers have been working with Congress to ensure that the One Big Beautiful Bill Act is maximally beneficial for manufacturing investment in America, and today’s announcement is a crucial step in that direction.

“It’s now time for the Senate to vote and for the House to send this bill to President Trump’s desk by July 4.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.93 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

For all the alarms that have been sounded about artificial intelligence’s possible contribution to climate change, AI, it turns out, could actually help slash emissions, according to new research (POLITICO Pro, subscription).

What’s going on: “Artificial intelligence could cut global climate pollution by up to 5.4 billion metric tons a year over the next decade if it’s harnessed in ways that would improve transportation, energy and food production.”

• Those cuts “would outweigh even the expected increase in global energy consumption and emissions that would be created by” data centers, according to new research from the Grantham Research Institute that was published in the journal “npj Climate Action.”
• By 2030, data centers are projected to consume twice as much electricity as they do today, according to the International Energy Agency—and the electrical grid is already strained.

The details: The report lays out five areas where AI can be used to slash emissions, including:

• Forecasting supply and demand fluctuations and helping the grid dole out energy more accurately, cutting down on intermittency
• Improving transportation by lowering the cost of electric vehicles via battery improvements

The backdrop: The use of AI has exploded in recent years, and President Trump is making the technology a priority as he aims to outcompete China.

Yes, but … The report urges the governments of developed nations to take an active role in determining how AI is applied and regulated “to make sure the downsides are managed effectively and the full potential of AI for climate action is realized,” the study’s author, Roberta Pierfederici, told POLITICO Pro.