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Rep. Randy Feenstra (R-IA) recently visited Sudenga Industries in George, Iowa, to meet with company leadership and employees and discuss the urgent need to extend pro-manufacturing tax provisions that are set to expire in 2025.

The visit: Sudenga Industries, a leading manufacturer of grain handling and feed processing equipment, is a vital part of Iowa’s manufacturing sector and supports agricultural operations nationwide.

• Company President Chuck Sjogren led Rep. Feenstra on a tour of the facility, highlighting Sudenga’s recently completed 150,000-square-foot expansion, which significantly increases the company’s production capabilities and reinforces its long-term commitment to growth in northwest Iowa​.
• “It was a pleasure to host Rep. Feenstra and team at our facility and showcase the innovation and dedication that drive our manufacturing operations,” said Sjogren. “We appreciated the opportunity to discuss the challenges and opportunities in the industry, and we’re grateful for his support of manufacturing in our state.”

The policy discussion: During the visit, Rep. Feenstra emphasized the importance of preserving key provisions from the 2017 Tax Cuts and Jobs Act, including:

• Full expensing for capital investments, which allows manufacturers to immediately deduct the cost of equipment and machinery, reducing the financial burden of growth;
• Immediate R&D expensing, ensuring that manufacturers can continue investing in innovation immediately rather than spreading deductions over multiple years; and
• Interest deductibility, which allows manufacturers to deduct interest payments on business loans—the current restriction, implemented in 2022, makes financing new equipment and expansion more expensive for manufacturers.

Rep. Feenstra says: “I enjoyed touring Sudenga Industries in George as part of my biannual 36 County Tour. While meeting with employees, we discussed the importance of domestic manufacturing and making products right here in Iowa. Investments in local manufacturing keep our main streets strong and bring [well]-paying jobs to our rural communities all while strengthening local economies,” said Rep. Feenstra.

• “That’s why I’m working to lock in pro-growth tax policies like 100% bonus depreciation, immediate R&D expensing and interest deductibility to support our businesses, job creators and manufacturers. Serving on the House Ways and Means Committee, I’ll continue to advocate for policies that strengthen domestic manufacturing and increase economic opportunities for Iowa workers.”

Certainty needed: Sudenga’s newly completed facility brings the company’s total manufacturing and warehouse footprint to more than 350,000 square feet​. The company, which employs more than 200 workers, invested in this expansion to support growing demand and ensure long-term competitiveness in the agricultural equipment industry.

• “Having more workspace under one roof is a game-changer, but we’ve also focused on improving the workday experience for our employees,” said Sjogren. “This expansion includes year-round climate control in the shop, modernized break areas, new offices, improved training facilities and advanced research and development facilities.”
• However, with the expiration of full expensing on the horizon, investments like these will become more difficult for manufacturers, potentially slowing economic growth and job creation in communities like George.

What Congress should do: Sudenga’s leaders, along with manufacturers across the country, are calling on Congress to swiftly restore these key tax provisions before they expire at the end of 2025.

• The NAM’s latest Manufacturers’ Outlook Survey found that nearly 40% of manufacturers have already reduced hiring and investment due to increased tax uncertainty​.
• “The manufacturing sector drives nearly $2.93 trillion in annual economic output in the U.S.,” said NAM Managing Vice President of Policy Charles Crain. “Failing to extend these tax policies will stifle growth at a time when we need to be strengthening our global competitiveness. Congress must ensure that manufacturers can continue to invest in innovation, workforce development and the next generation of American manufacturing.”

The bottom line: Crain stressed the need for immediate congressional action to protect manufacturers from looming tax hikes.

• “If Congress doesn’t act soon, manufacturers across Iowa and the country will face devastating tax increases that stifle investment and job creation,” said Crain. “Losing full expensing, R&D incentives and interest deductibility would significantly weaken the ability of manufacturers to grow and compete globally. We need lawmakers to step up and extend these provisions before they expire to keep America’s manufacturing sector strong and competitive.”