Manufacturing Wins

Tax reform in 2017 led to unprecedented levels of manufacturing job creation, wage growth and capital investment. But our progress is at risk: devastating tax increases are scheduled for the end of 2025. Manufacturers need Congress to preserve tax reform in its entirety so we can hire more workers, increase wages, expand facilities and invest for the future.

What's at Stake: Tax Compendium

WHAT’S AT STAKE   KEY RESOURCES   Faces of Tax Reform

Key Facts

94%
of manufacturers agree that Congress should act before the end of 2025 to prevent tax hikes on manufacturers
93%
of small manufacturers agree that the loss of the pass-through deduction will impact their ability to grow, create jobs and invest in their business
73%
of manufacturers agree tax increases will limit capital investment opportunities
65%
of manufacturers agree tax increases will decrease job creation

Fighting for Tomorrow

Millions of American workers are depending on the manufacturing sector to continue driving America forward. Pro-growth tax policies from the 2017 tax reforms, which were rocket fuel for manufacturers, proved this by keeping the U.S. economy competitive on a global scale.

By preventing pro-growth tax policies from expiring in 2025, Congress will preserve a competitive tax system that spurs job growth across our communities, secures the U.S. as a global leader in innovation and reinforces America’s competitiveness on the world stage.

2025 will be nothing short of a tax reckoning as Congress decides how to end the tax reform story. Allowing tax reform to sunset will undermine much of the progress we’ve made since 2017. At Husco, tax hikes will slow our growth and prevent us from investing in job-creating projects that support our community and our economy.
— Austin Ramirez, President and CEO of Husco
Ketchie will be directly harmed by the loss of the pass-through deduction, the increase in our tax rates and the reduced protection from the estate tax. If Congress doesn’t act now and in 2025, manufacturers will be competing with one hand tied behind our back for the foreseeable future.
— Courtney Silver,
President and Owner, Ketchie, Inc. Chair, the NAM Small and Medium Manufacturers Group

What’s at Stake

Much is at stake for manufacturers and manufacturing families. Below are critical policy recommendations that Congress and the president should act on to prevent damaging tax increases from stunting manufacturing job creation, growth and innovation.

READ MORE: “WHAT’S AT STAKE”  Key Resources

  1. 1
    Pass-Through Deduction: Protect the 20% deduction that has allowed small businesses organized as pass-throughs to compete on a level playing field.
  2. 2
    Corporate Tax Rate: Preserve the 21% corporate tax rate, which has stimulated economic activity here at home and has bolstered America’s competitiveness on the world stage.
  3. 3
    Individual Tax Rates: Prevent damaging tax hikes on manufacturing families and pass-through manufacturers that pay tax at individual rates.
  4. 4
    Research and Development: Restore immediate R&D expensing and preserve America’s leadership in R&D and innovation.
  1. 5
    Full Expensing: Preserve the ability for manufacturers to immediately expense 100% of the cost of capital equipment purchases.
  2. 6
    Interest Deductibility: Support manufacturers’ efforts to get job-creating projects off the ground by returning the U.S. to an EBITDA standard for interest deductibility.
  3. 7
    Estate Tax: Preserve tax reform’s increased exemption threshold or eliminate the estate tax altogether.
  4. 8
    International Tax: Prevent tax increases on globally engaged manufacturers.

Key Resources

Take a look at the critical resources the NAM has produced to improve and enhance pro-growth legislation and help manufacturers learn more about policies that will create a competitive tax agenda.

What’s at Stake: Tax Compendium

This document outlines each of the major tax reform provisions set to expire at the end of 2025 and provides guidance on how and why Congress and the president should act to prevent damaging tax increases from stunting manufacturing job creation, growth and innovation.
What’s at Stake: Manufacturers Face Devastating Tax Increases in 2025

This document provides a summary of the tax reform provisions set to expire at the end of 2025 and provides an outline of next steps that Congress and the president should take to prevent damaging tax increases from stunting manufacturing job creation, growth and innovation.
What’s at Stake: Pass-Through Deduction and Individual Income Tax Rates

More than 96% of businesses in America are organized as pass-throughs. In the manufacturing industry, pass-throughs are typically small, family-owned businesses. This is what’s at stake if the 20% pass-through deduction expires at the end of 2025.
What’s at Stake: Corporate Tax Rate

Tax reform in 2017 lowered the corporate rate from 35% to 21%. But President Biden’s FY 2025 budget proposed a 28% corporate rate—which would once again subject manufacturers in the U.S. to one of the highest rates of tax in the developed world.
What’s at Stake: Estate Tax

Congress should preserve tax reform’s increased estate tax exemption threshold and maintain the tax code’s treatment of stepped-up basis. The NAM also supports full repeal of the estate tax.
What’s at Stake: Research and Development

Congress has the opportunity to restore immediate R&D expensing as policymakers work to preserve other pro-growth tax provisions in 2025.
What’s at Stake: Full Expensing

Congress must act to make full expensing permanent. Restoring the 100% level of accelerated depreciation will reduce the cost of capital equipment purchases across the manufacturing sector, supporting growth and job creation at manufacturers of all sizes.
What’s at Stake: Interest Deductibility

Congress has the opportunity to restore a pro-growth interest deductibility standard as policymakers work to preserve tax reform in 2025. If Congress does not act, manufacturers will continue to face increased costs when looking to debt finance projects here in the U.S.
What’s at Stake: International Tax

Congress should preserve tax reform’s international tax reforms and prevent tax obligations from increasing on manufacturers whose success bolsters America’s competitiveness on the world stage.

Congressional Letters

Congressional letter: NAM to the Senate Finance Committee September 12, 2024
Congressional letter: NAM to the House Ways and Means Committee Tax Teams:
Main Street (VIEW), Supply Chain (VIEW), Rural America (VIEW), Global Competitiveness (VIEW),
U.S. Innovation (VIEW), Manufacturing (VIEW) June 27, 2024
Congressional letter: NAM to the House Ways and Means and the Senate Finance Committees. June 11, 2024

Share Your Voice

By sharing our voices, manufacturers play a vital role in advocating for a tax environment that fosters a competitive landscape for manufacturers to thrive and contribute to our economic prosperity. We encourage you to share with us your thoughts on why fighting for pro-growth tax provisions is critical for manufacturing’s competitiveness. In doing so, you’re helping to equip the NAM with our most powerful advocacy tool: the manufacturing voice.

“Tax reform’s small business relief provisions were clearly helpful. Their investments meant more business for us and our employees. It made it easier to invest for the future and to weather some of the recent challenges. Keeping the tax code competitive—and making more improvements—is just so important for manufacturers’ future.”

—Lisa Winton, CEO and Co-Owner, Winton Machine Company