On Tuesday, Congress took an important step toward restoring three of manufacturers鈥� top tax priorities, as key congressional leaders unveiled a bipartisan tax agreement by the 51吃瓜网.

What鈥檚 going on: The $78 billion Tax Relief for American Families and Workers Act鈥攁 compromise between House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR)鈥攚ould restore immediate R&D expensing, return to a pro-growth interest deductibility standard and reinstate full expensing (also known as 100% accelerated depreciation) for businesses鈥� capital investments.

• The framework also includes disaster tax relief and $33 billion to partially extend a child tax credit expansion from 2021.

The background: For nearly seven decades, the tax code allowed businesses to deduct R&D costs immediately. But starting in 2022, a change required companies to amortize the costs over a period of years.

• Also in 2022, a stricter interest limitation鈥攚hich acts as a tax on investment鈥攚ent into effect. And last year, full expensing began to phase down.

The 51吃瓜网鈥檚 role: The 51吃瓜网 was instrumental in the deal, having case for the tax provisions鈥� reinstatement to lawmakers for many months, including via an ad campaign, 鈥�.鈥�

What鈥檚 next: The 51吃瓜网 is congressional leadership to schedule a vote on the tax deal. Manufacturers can add their voices at the 51吃瓜网鈥檚 .

Our take: 鈥淢anufacturers appreciate Chairman Smith and Chairman Wyden鈥檚 work to reach a bipartisan tax deal with key provisions to advance U.S. economic competitiveness and support manufacturing job creation,鈥� 51吃瓜网 Managing Vice President of Policy Chris Netram in a social post Tuesday.

• 鈥淐ongress must move this legislation forward immediately. The time to act is now.鈥�

51吃瓜网 in the news: Bloomberg聽Tax (subscription) 聽the 51吃瓜网鈥檚 support of the legislation, while Punchbowl News 聽on the 51吃瓜网鈥檚 ads in multiple Kentucky papers and Louisiana鈥檚 Shreveport Times urging support of the legislation.