Manufacturers Build on Tax Reform Wins
Last year’s tax law provided much-needed tax certainty for manufacturers by making pro-growth tax provisions permanent. Now, the industry is considering what’s next on its list.
The priorities: As NAM Vice President of Domestic Policy Jake Kuhns recently told Punchbowl, the NAM will focus on H.R. 1 implementation, additional tax provisions and modernizing regulations over the next year.
By the end of the year: In the near term, the NAM is working to extend the 35% tax credit for qualified investment, which H.R. 1 expanded after it was introduced in the CHIPS and Science Act. It is currently set to expire on Dec. 31.
- “The incentives only work if the extension makes sense and gives the certainty needed to keep that investment flowing into the sector,” Kuhns said.
Under the new Congress: In 2027, when the new Congress comes in, the NAM will keep its focus on pro-growth, pro-manufacturing tax policy.
- “We got the pro-growth tax code,” Kuhns said. “We finally had the certainty that supports long-term investment planning, so we quickly turned our attention to implementation and working with Treasury.”
- The NAM is also pressing for additional changes to the research and development tax credit laws, focusing on modernizing compliance procedures for businesses, which currently preclude many small businesses from participating.
- Meanwhile, the NAM is also working to shape the Treasury Department’s implementation of international tax provisions from H.R. 1, including expense allocations, while maintaining its advocacy for policies that support manufacturers’ workforce training investments.
The bottom line: As Punchbowl notes, the NAM had 10 tax priorities for last year’s landmark tax legislation, and it got 11 (the last one being the new facility expensing provision). That law puts manufacturers in a strong position for further advocacy going forward.
