The figures above were collected in the NAM’s Q1 2024 Manufacturers’ Outlook Survey.
Manufacturing Wins
Key Facts
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.
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.
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1Pass-Through Deduction: Protect the 20% deduction that has allowed small businesses organized as pass-throughs to compete on a level playing field.
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2Corporate 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.
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3Individual Tax Rates: Prevent damaging tax hikes on manufacturing families and pass-through manufacturers that pay tax at individual rates.
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4Research and Development: Restore immediate R&D expensing and preserve America’s leadership in R&D and innovation.
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5Full Expensing: Preserve the ability for manufacturers to immediately expense 100% of the cost of capital equipment purchases.
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6Interest Deductibility: Support manufacturers’ efforts to get job-creating projects off the ground by returning the U.S. to an EBITDA standard for interest deductibility.
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7Estate Tax: Preserve tax reform’s increased exemption threshold or eliminate the estate tax altogether.
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8International 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: Manufacturers Face Devastating Tax Increases in 2025
This document outlines the 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: 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. |
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