Treasury Clears Path for Greater Manufacturing Investment with Tax Proposal on CAMT
Washington, D.C. – Following the release of a new proposal from the Department of the Treasury reforming key aspects of the Corporate Alternative Minimum Tax guidance and addressing the interaction between the immediate expensing of R&D costs and the CAMT, National Association of Manufacturers Managing Vice President of Policy Charles Crain released the following statement:
“Congress and the Trump administration passed a once-in-a-generation tax law last summer, and now Treasury is building on that win.
“The Corporate Alternative Minimum Tax has threatened manufacturers’ ability to raise wages, hire workers and invest in their communities since it was enacted in 2022. With today’s proposal, Treasury has taken a step toward fixing this fundamentally unworkable regime.
“In particular, the proposed changes to protect H.R. 1’s restoration of immediate expensing for R&D costs will ensure manufacturers are not penalized for their commitment to making investments that drive innovation. Manufacturers conduct 52% of private-sector research—investments that will continue to drive the industry and the economy given that 80% of manufacturers say AI innovation will be essential to grow or maintain their business by 2030.
“The Trump administration is meeting the moment by taking urgent action to supercharge private-sector R&D. Manufacturers called for this critical change, and we thank Treasury for taking this important step to support manufacturing innovation and ensure the continued success of H.R. 1 for our industry.”
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The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.95 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.