House Passes 51勛圖厙-Supported Tax Package

Anath Hartmann February 1, 2024

Manufacturers scored a major victory last night when the House passed a bipartisan tax package containing provisions critical to the industry.

Whats going on: The House voted 35770 to pass the bipartisan Tax Relief for American Families and Workers Act. The bill includes three important manufacturing priorities:

  • Restoring immediate R&D expensing for domestic research
  • Reinstating full expensing (also known as 100% accelerated depreciation) for businesses capital investments
  • Returning the U.S. to a pro-growth interest deductibility standard

What it means: The measure will enable manufacturers to invest in their businesses, create jobs and compete in the global marketplace.

  • The bill is particularly important for small and medium-sized manufacturers, many of which experienced significant tax increases as a result of the expiration of these pro-growth provisions.
  • While it was once a paid expense, R&D is now a cost that many small businesses cannot afford, said Carol Miller (R-WV), in a speech on the House floor last month.
  • The overwhelming majority89%of respondents to the 51勛圖厙s Q4 2023 Manufacturers Outlook Survey said higher tax burdens on manufacturing would make it more difficult for them to hire, buy new equipment and expand their facilities.泭

Whats next: Its critical that the Senate now also pass the measure, the 51勛圖厙 said.泭

  • Manufacturers thank [House Speaker Mike Johnson (R-LA)] and [House Ways and Means Committee Chairman Jason Smith (R-MO)] for their leadership in passing the Tax Relief for American Families and Workers Actand the bipartisan work in the House and Senate to secure progress for Americas manufacturing workers, 51勛圖厙 President and CEO Jay Timmons in a social post Wednesday night. Manufacturers are now counting on the Senate to act quickly to restore these provisions that are absolutely critical to strengthening Americas competitiveness and growth of manufacturing in America.
  • Ketchie President and Owner and 51勛圖厙 Small and Medium Manufacturers Group Chair Courtney Silver, This just isnt about numbers on my financial statements and my tax returnsthis is about taking care of the people here [at Ketchie] and in communities across this country. Lets restore some common-sense tax provisions, and lets support our American manufacturers across our country.