Tax

Rep. Vern Buchanan (R-FL-16), chairman of the House Ways and Means Committee’s American Manufacturing Tax Team, led a group of House GOP members on a tour of manufacturing facilities in Michigan last month. The tour highlighted the importance of extending critical tax provisions set to expire in 2025.

Reps. Mike Collins (R-GA-10), Kevin Hern (R-OK-1), Victoria Spartz (R-IN-5) and Rudy Yakym (R-IN-2) joined Rep. Buchanan for a series of discussions focused on ensuring that the tax code enables manufacturers in the U.S. to remain globally competitive. 

Touring DENSO: The representatives first visited DENSO’s facility in Southfield, where executives outlined the crucial role research and development plays in the automotive sector. However, the expiration of immediate R&D expensing in 2022 has threatened to hamstring their capacity to innovate, DENSO’s leaders said.

• Buchanan emphasized the urgency of reinstating immediate R&D expensing to keep manufacturers in the U.S. competitive. “We cannot allow our manufacturers to fall behind in innovation because of uncompetitive tax policies,” he said.
• “Restoring R&D expensing will allow companies like DENSO to continue investing in their businesses, employees and local communities.”

Lunch with manufacturers: Next, the NAM hosted a luncheon roundtable for the representatives and local manufacturers, where participants discussed the need to preserve pro-growth tax policies.

• NAM Executive Vice President Erin Streeter opened the discussion by highlighting how the 2017 Tax Cuts and Jobs Act has been “rocket fuel” for the manufacturing industry. “Tax reform led to historic job creation and wage growth for manufacturers of all sizes,” Streeter said. “Congress must protect manufacturers from devastating tax increases by preserving tax reform in its entirety.”
• Several manufacturers voiced concerns about threats to key tax provisions, including the pass-through deduction and the 21% corporate tax rate.
• “If these tax policies are allowed to expire, we’ll be forced to cut back on investments that drive growth,” one local manufacturer said.

Visiting Magna International: Last, the representatives toured Magna International’s facility in St. Clair, where the group got to see the production of the company’s cutting-edge autonomous vehicle technology.

• During the tour, Magna’s leaders noted that the expiration of pro-growth tax provisions could hamper future investments in these critical technologies​.

Momentum: These events followed a series of facility visits from key congressional leaders over the August congressional recess, hosted by the NAM and spotlighting the top priorities of American manufacturers.

• “These discussions are shaping the future of manufacturing right here on the shop floor,” said NAM Managing Vice President of Government Relations Stef Webb. “From R&D expensing and accelerated depreciation to the pass-through deduction and the corporate tax rate, these are the policies manufacturers need to stay competitive in the global market.”

The last word: Following the day’s events, Rep. Buchanan reaffirmed the Manufacturing Tax Team’s commitment to ensuring a competitive tax environment.

• “We must fight to preserve the tax policies that have allowed American manufacturing to thrive,” Rep. Buchanan said. “The stakes are high, and Congress must act before it’s too late.”

If you want to add your voice to the fight for tax reform, or host legislators for a facility visit, check out the NAM’s “Manufacturing Wins” campaign.