With tax bill negotiations left unfinished before lawmakers left for the holiday break, the NAM is hitting the ground running in 2024.
- The NAM continues to push for manufacturers’ top three tax priorities: immediate R&D expensing, a pro-growth interest deductibility standard and full expensing for capital investments.
What’s going on: Congress has just a few weeks to reach a government funding deal before a Jan. 19 deadline, “when funding for a range of government agencies is scheduled to lapse,” according to POLITICO. There is a second funding deadline on Feb. 2.
- The NAM has been calling on Congress to prioritize inclusion of the three tax provisions in any measure it passes.
- The NAM recently led a coalition of more than 1,300 businesses and associations in highlighting the urgent need for congressional action.
What’s needed: Congress must reinstate immediate R&D expensing; loosen a strict interest limitation; and return to full expensing (also known as 100% accelerated depreciation) for businesses, the NAM said.
Why it’s important: If these fixes aren’t made, manufacturing R&D, jobs and competitiveness could all suffer.
- Some 78% of manufacturers say the higher tax burden has decreased the funds available to expand their manufacturing activities within the U.S., according to the Q2 2023 NAM Manufacturers’ Outlook Survey.
The last word: “These tax provisions are some of the most critical issues facing manufacturers today,” said NAM Vice President of Domestic Policy Charles Crain.
- “Congress must act immediately to protect manufacturing jobs and maintain America’s competitiveness on the world stage.”
Act now: Visit the NAM’s Tax Action Center to send a message directly to Congress about these critical priorities.