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Manufacturing in the U.S. is advancing, but to grow it needs more workers—including via immigration. That’s why immigration reform is one of the 51�Թ���’s key policy priorities to boost the industry’s competitiveness, as 51�Թ��� President and CEO Jay Timmons told the Minnesota Manufacturers’ Summit yesterday in Minneapolis. The event was hosted by the Minnesota Chamber of Commerce.

• This week, the 51�Թ��� released an updated version of its immigration policy blueprint “A Way Forward,” which Timmons highlighted in his speech.

What our immigration system needs: “Despite all the overheated rhetoric, one thing we can agree on is this: the United States has a broken and unreliable immigration system—and it is harming manufacturers’ competitiveness,” said Timmons.

• He cited the need for more employment-based H-1B visas; more temporary H-2B visas; more programs for foreign-born U.S. students in STEM fields; a new visa category to address temporary economic needs in the U.S.; and protection for Dreamers along with a pathway to legal status for unauthorized U.S. residents.

Other priorities: Timmons also covered other key manufacturing priorities, including energy policy fixes.

• “Congress can deliver sustainable permitting improvements that can fast-track critical infrastructure projects and speed up the construction of new manufacturing facilities,” he said.

• “The situation in Europe and the actions of OPEC show us this isn’t just an issue of economic competitiveness. It’s also an issue of national security.”

Reducing the burden: “Policymakers can also help by streamlining regulatory policy in general,” Timmons added. “The annual regulatory cost burden for an average U.S. firm represents 21% of its payroll.”

• “Manufacturers support smart, sensible regulation to protect our health, our workplaces and the environment. But the more time and resources manufacturers spend on their compliance burden every year, the less we can spend solving our greatest challenges.”

The bottom line: “Whether it’s permitting reform or immigration reform, building on tax reform or advancing workforce solutions, manufacturers are positioned to lead,” said Timmons. “So, our role is to be true to the values that have made America exceptional and kept manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.”

Further reading: Timmons has been hitting the road this week to promote manufacturers’ priorities to leaders across the country. If you missed it, catch up on his earlier speech in Phoenix, Arizona.

As the manufacturing industry grapples with disruptive forces in the U.S. and around the world, companies are looking for more certainty and opportunity.

51�Թ��� Vice President of International Economic Affairs Ken Monahan about these issues with UPS President of International Public Affairs Penelope Naas in a panel discussion during the UPS Supply Chain Solutions virtual conference on Oct. 5.

The big idea: “Manufacturers of all sizes must be able to compete in a global economy by selling not just to consumers in the U.S., but also to billions of consumers globally,” said Monahan.

• “For us, international economic growth is core to our DNA—and it is absolutely critical that we increase opportunities for those 95% of the global population that lives outside of the U.S.”
• The 51�Թ��� emphasized these broad priorities in its just-released “Competing to Win” policy agenda.��

The challenge: “We’ve just seen wave after wave of supply chain disruptions, and the impact that that’s happening on the ability of manufacturers to operate and engage not just in the U.S. but globally,” said Monahan. “In a recent quarterly survey [of 51�Թ��� members], 78% of our leaders listed supply chain instructions as a primary business challenge.”

• According to Monahan, the global nature of manufacturing underscores “the importance of our industry working to ease the types of global supply chain bottlenecks that are impacting so many businesses around the world … easing uncertainty and … knocking down unfair trade barriers that continue to stymie the growth of economic activity globally.”

Problems and solutions: Monahan named COVID-19, the Russian invasion of Ukraine and disclosure requirements that require more scrutiny of supply chains as key factors impacting manufacturers—and emphasized the need for diverse sources of products to ensure supply chain resiliency in the future.

Building partnerships: Monahan pointed to the importance of robust trade agreements and partnerships with economic allies to secure resilient supply chains and promote fair competition.

• “When it comes to trade, we need to think through ways in which we can deepen our partnerships with our friends and allies,” said Monahan. That means “seeking trade agreements and cutting-edge, best-in-class frameworks with our trading partners to encourage increasing standards to U.S. levels.”

Monahan also noted a series of ongoing U.S. efforts with global trading partners, including in the Indo-Pacific region, Europe, the Americas and Kenya. He made clear that the 51�Թ��� is working to promote new agreements that open markets, strengthen U.S. innovation and technology standards and increase global standards around trade rules, among other priorities.

• Such U.S. global engagement is “demonstrating to manufacturers that the U.S. is back on the field,” said Monahan. “But at every opportunity, we are pushing the administration to think bigger, be even more ambitious and take this opportunity in front of it.”

Promoting transparency: Monahan spoke about the importance of manufacturers’ insight into their supply chains.

• “Companies need to be knowledgeable about as many tiers of their supply chains as possible and have strong due diligence and compliance programs in place to ensure to the maximum extent possible that goods are not being sourced or sold to entities that use forced labor or are on various export control lists,” he said.

The last word: “We need to be able to really put forward and advance the same principles globally that we do here at home as manufacturers: nondiscrimination, fairness, equal opportunity and competition,” said Monahan. “We are at our best when we are advancing those priorities globally and in the U.S.”

51�Թ��� President and CEO Jay Timmons is on a barnstorming tour of the U.S., to raise more support among leaders for addressing supply chain challenges, creating more manufacturing jobs and making the country more resilient. He brought this message to the 2022 Arizona Manufacturing Summit in Phoenix, Arizona, yesterday.

Manufacturing’s strength: “I’m pleased to report that manufacturers are shattering expectations across the United States,” said Timmons. “Here’s one encouraging fact: manufacturers have now recovered all the jobs the industry lost at the start of the pandemic—and then some. There are more than 12.8 million people working in manufacturing… And that’s because we’re doing what we’ve always done. We’re solving problems, we’re innovating and leading into the future.”

Challenges ahead: “Inflation has reached the highest level in decades,” said Timmons. “Supply chains are still strained, making it harder to move resources and products. Global instability—especially Russia’s war on Ukraine—shows us it’s more important than ever that we secure domestic energy supplies.”

• “We’re facing a workforce crisis, with less than six job seekers for every ten jobs in America. And almost 70% of Americans today say the country is on the wrong track. Now, we’ve seen some moments of historic bipartisan action in Washington … But there is so much more to be done.”

Competing to Win: Timmons pointed to the 51�Թ���’s policy roadmap, “Competing to Win,” which offers an agenda for manufacturing competitiveness on issues including the following:

• Taxes: “We need U.S. tax policy to keep up and encourage more industrial investment here,” said Timmons. “So, we’re calling for making the 20% deduction for pass-through income permanent—and expanding it. The small and medium-sized businesses here deserve confidence that they won’t lose that all-important tool. And we need to fix provisions of the tax law that are making R&D and capital investment more expensive starting this tax year.”
• Trade: “While we’re working on tax policy here at home, we also need to expand opportunities to sell our products overseas,” said Timmons. “Exports are part of our industry’s lifeblood. That means policymakers should hold countries accountable for practices that harm manufacturers in the U.S. We should continue pursuing cutting-edge trade deals, while ensuring that the agreements already in place are delivering for our industry. And we should reject policies at international bodies like the World Trade Organization that would take away intellectual property rights.”
• Immigration: “We need Congress to fix the broken, unreliable immigration system,” said Timmons. “Clearly, we need border security, and we need more avenues for people to come legally and work. It’s critical to our economic competitiveness—and consistent with our values.”

The way forward: “It can be disheartening to know that so many Americans don’t believe the country is on the right track,” said Timmons. “But a focus on policy—getting things done, rather than blaming each other—can change that. And manufacturers are positioned to lead. The work we do to create jobs and to improve the quality of life is essential, and we can’t let up. We won’t let up.”

This story can also be found within the 51�Թ���’s R&D action center.

In an industry where technology and processes can change quickly, manufacturers in the United States must be able to invest, grow and maintain their edge against foreign competitors. At a time when China is providing extensive support for its manufacturing industry, the 51�Թ��� is pushing to ensure that the men and women who make things in America have the tools they need to succeed.��

The challenge: Right now, China’s tax policies offer significant incentives for research and development. For example, China a super deduction for manufacturers performing R&D by allowing them to deduct 200% of their R&D expenses. This policy makes it more attractive for manufacturers in China to invest in innovation—and to out-compete manufacturers in the United States.

The comparison: Meanwhile, U.S. manufacturers, who drive more innovation than any other sector, face a harmful tax change that if not reversed will hurt jobs, innovation and competitiveness.

• Up until January 2022, a business in the United States could deduct 100% of their R&D expenses in the year during which those expenses occurred.
• But a change in the tax code that took effect this year now requires businesses to spread those deductions over a period of years—the so-called amortization requirement—making investment in innovation more expensive to conduct.

Recent action: This week, the 51�Թ��� rallied the business community to Congress to repeal the recent tax change, so that businesses can continue to innovate, bolster the economy and create well-paying jobs.

• “Failing to reverse this change will cost well-paying jobs and reduce future innovation-directed R&D,” according to the 51�Թ���’s letter, which was signed by more than 400 companies and business organizations.
• “Requiring the amortization of research expenses will reduce R&D spending and lead to a loss of more than 20,000 R&D jobs in the first five years with the number of lost jobs rising to nearly 60,000 over the following five years. Moreover, when accounting for the spillover effect from R&D spending, nearly three times as many jobs will be affected.”
• “At a time of increasingly fierce global competition for research dollars, this change will make it harder for the next R&D dollar to be spent in the U.S. which will ultimately hurt future U.S. competitiveness.”

What we’re saying: “Research and development is the lifeblood of manufacturing,” said 51�Թ��� Senior Director of Tax Policy David Eiselsberg. “It is what drives innovation, competitiveness, economic growth and the creation of high-paying jobs. But that is all at risk unless Congress quickly acts to repeal the harmful change in the tax treatment of R&D expenses.”

Finer point: “If Congress and the administration do nothing, small manufacturers will face a huge tax increase at the end of the year,” 51�Թ��� Executive Vice President Erin Streeter warned. “This will have a crippling effect—and we’re mobilizing support at the 51�Թ��� across the industry to get another hard-fought priority done.”

Last week was a milestone for the Tour—it marked the first time the nationwide initiative returned to a community and got to see how perceptions of manufacturing had changed since its first visit.

Welcome back: The Tour, a joint venture of the 51�Թ��� and its workforce development and education partner, The Manufacturing Institute, returned to host and champion sponsor Nephron Pharmaceuticals Corporation in West Columbia, South Carolina, in the 11th stop of the roadshow, which took place Oct. 4–7.

Happy MFG Day! On MFG Day, Oct. 7, Creators Wanted campaign co-chair Lou Kennedy, president, CEO and owner of Nephron Pharmaceuticals Corporation, and her team hosted the tour stop’s at its new Nephron Nitrile Glove Factory. The 426,000-square-foot facility is scheduled to open next month and will produce nitrile gloves used in hospitals and sterile rooms globally.

• The protective-glove shortage in the U.S. during the pandemic inspired Kennedy to build the factory, which is set to produce 2 million gloves a year at full capacity.
• South Carolina legislators from both sides of the political aisle were on hand for a tour of the site. House Democratic Majority Whip James Clyburn and Republican Reps. Joe Wilson and Jeff Duncan joined hundreds of local students, educators, community leaders and manufacturers to view and learn more about the campaign and its resources.

Ready for the “boom”: “There is a manufacturing boom taking place all over the country,” Majority Whip Clyburn said. “We’ve got to focus on getting these young people prepared” for manufacturing careers.

• As Rep. Wilson said, “The opportunities for manufacturing just can’t be better.”
• “401(k), great salary—average wage of 75 to 80K—clean and beautiful working conditions and hard work with a lot of fun,” Kennedy said of jobs at Nephron, while extolling opportunities at modern manufacturers across the state and in nearby communities.
• Major Creators Wanted supporters Honda and Trane Technologies also have operations in the Palmetto State, and , including Chroma Color Corporation, are within a short distance of West Columbia.

More career guidance: Students seeking tailored advice about their professional futures got it from representatives of FactoryFix, official recruiting partner of Creators Wanted, who were on hand to meet and coach job seekers.

• South Carolina Chamber of Commerce President and CEO Bob Morgan, whose organization is a tour partner, was on site with his team to give students information on manufacturing opportunities in South Carolina.
• On Friday, Creators Wanted sponsor Autos Drive America had an exhibit showing attendees the types of vehicles being manufactured in South Carolina.

Women in manufacturing: During a “” panel on the tour stop, Kennedy was joined by Autos Drive America President and CEO Jennifer Safavian and MI President Carolyn Lee to discuss the importance of advancing more women in manufacturing.

• “Growing up here in the deep south 20, 30 years ago, we were supposed to be teachers or … nurses; we weren’t supposed to be pharma CEOs,” Kennedy said. “And so, my goal is to help every young lady be what she wants to be, even if it’s the nontraditional career path. … If you want to be a super-genius chemist, you can do that. If you want to be a super-genius engineer, you can do that.”
• Echoed Safavian, “I think the message [of Creators Wanted] is, ‘Don’t be afraid to ask questions. Don’t be afraid to try something. For women especially, this is a terrific opportunity. … A lot of people think manufacturing is dark, dirty, dangerous. It is not. … it is the complete opposite.”

Calling all veterans: Modern manufacturing is also a natural fit for those who have been in the military, speakers told the audience during another .

• “I started at Nephron as a senior system analyst, and throughout my career everything that I was faced with at Nephron I’d already seen in the military,” said Air Force veteran Eric Jackson, now a senior IT security analyst at Nephron. “So, I think the [military] training … is what prepared me for this job.”

The reach: The South Columbia 2022 tour stop, made possible by additional support from Dow, Honda and Nephron Pharmaceuticals, was a record breaker.

• More than 700 students from 13 schools—most located in traditionally underrepresented communities—participated in the tour stop’s events. Last year, those numbers were 500 and seven, respectively.
• This year’s West Columbia email signups—people wishing to learn more about manufacturing careers—brought Creators Wanted’s total signups to more than 520,000.

The last word: The tour stop may have been best summarized by one young student who attended the events. “Creators Wanted,” she said, “is a .”

If you’re a student or job seeker looking for tailored career guidance combined with some hands-on, immersive fun, White House, Tennessee, was the place for you to be last week.

National impact: The Creators Wanted Tour, a joint project by the 51�Թ��� and MI, made its 10th national tour stop at White House Heritage High School on Sept. 27–29.

• There, more than 700 students from four schools in Tennessee’s Robertson County went through the Creators Wanted mobile immersive experience, the award-winning, manufacturing-themed escape room–like activity in which participants work together to solve challenges in a “race to the future.”
• They also got the opportunity to chat with on-site sponsor representatives from Electrolux, Schneider Electric and FactoryFix about the many rewarding, well-paying career paths available in the industry.
• Local partners, including the Robertson County Economic Development Board, the Tennessee Chamber of Commerce & Industry and the Tennessee Manufacturers Association, were also on hand to answer jobs- and manufacturing-related questions.

Calling all creators: During the Tennessee stop’s premier event, speakers underscored the need for more skilled workers to fill the millions of open manufacturing jobs in the U.S.

• “Here in Tennessee, our industry has more jobs to fill than there are people looking for them,” Tennessee Chamber of Commerce & Industry and Tennessee Manufacturers Association President and CEO Bradley Jackson said.
• Speaking from firsthand experience about the many benefits of choosing one of those jobs was Tony Fraley, a plant manager for Electrolux. “I’m living proof of the great career opportunities in the field of advanced manufacturing,” said Fraley, who started at the company “running a process that coats dishwasher racks.”
• “I grew up about two hours from here in a small town very similar to White House,” he continued. “I always liked math and science. … I hope that stories like [mine] inspire the next generation of workers to consider a career that’s not only been good to me, but also offers a strong opportunity to earn a family-sustaining wage in a high-demand field.”

The numbers: The Tennessee stop resulted in more than 52,000 email signups from people interested in learning more about manufacturing careers.

An eye-opener: Students had a great time at last week’s events—and were pleasantly surprised to learn just how many interesting options manufacturing could offer them.

• “Creators Wanted made me excited about my future,” said one student.
• Added another, “Creators Wanted made me think more about my future in manufacturing.”

The last word: It’s past time for manufacturing careers to get their due as the gratifying professions they are, according to the Creators Wanted Spotlight panelists (and manufacturing company employees).

• Manufacturing “is definitely very rewarding [from a salary standpoint] but also the lifestyle that you get to have,” said Schneider Electric Manufacturing Engineer Zoie McFarland. “I get to go boating every weekend. I get to go hiking. I travel a lot. … Also, I was able to buy a house at 25. So, I think that is one major benefit—the lifestyle [manufacturing] gives you and the benefits that come from it.”

The 51�Թ��� is constantly working to support and strengthen the men and women who make things in America. That mission is upheld by outstanding members of the 51�Թ��� Board of Directors and their commitment to promoting the industry’s competitiveness on the global stage—a goal laid out in the 51�Թ���’s “” agenda.

Welcoming new faces: A number of new members have been elected to the board and will begin their two-year terms in January. They come from many sectors of the industry and companies both large and small, holding an array of leadership roles and boasting a wide range of experience. All of them are dedicated to ensuring that manufacturers in the U.S. have the tools they need to prosper.

The new members include the following:

• Edward Blair, president, Lutron Electronics Co., Inc.
• Sara Beth Burton, senior vice president, global supply chain, Hallmark Cards, Inc.
• Richard Cammarano, president and chief executive officer, Tech-Etch, Incorporated
• Karl Ehemann, vice president, global manufacturing and quality, Corning Incorporated
• Ed Elkins, executive vice president and chief marketing officer, Norfolk Southern Corporation
• Cynthia Farrer, senior vice president, global operations and integrated supply chain, Allegion plc
• Aimee Gregg, vice president and general manager, containerboard and recycling, International Paper
• John Hartner, founder, Digital Industrialist LLC
• Christopher Kastner, president and chief executive officer, Huntington Ingalls Industries
• Ram Krishnan, executive vice president and chief operating officer, Emerson
• Reece Kurtenbach, chief executive officer and president, Daktronics, Inc.
• Rose Lee, president and chief executive officer, Cornerstone Building Brands
• Thomas Long, co-chief executive officer, Energy Transfer LP
• Michael McGarry, chairman and chief executive officer, PPG
• Lori Miles-Olund, president, Miles Fiberglass & Composites, Inc.
• Christopher Perkins, president North America and senior vice president Taste & Beyond North America, Firmenich, Inc.
• Kimberly Ryan, president and chief executive officer, Hillenbrand, Inc.
• Karin Shanahan, executive vice president, global product development and supply, Bristol-Myers Squibb Company
• Matt Shields, senior vice president, global animal health manufacturing, Merck & Co., Inc.
• Sachin Shivaram, chief executive officer, Wisconsin Aluminum Foundry
• Shruti Singhal, chief executive officer, Chroma Color Corporation
• Mark Smucker, president and chief executive officer, The J.M. Smucker Company
• Matt Wood, national industry leader, commercial products practice, FORVIS
• Brent Yeagy, president and chief executive officer, Wabash
• Renée Zemljak, executive vice president, midstream, marketing & fundamentals, Ovintiv USA Inc.

What we’re saying:��“The diverse backgrounds of our new board members, and their varied experience across many manufacturing sectors, make their counsel invaluable to the 51�Թ��� in its efforts to bolster the industry’s competitiveness,” said 51�Թ��� Chief of Staff Alyssa Shooshan. “We are counting on their insights and dedication to help steer manufacturers through this turbulent time and into a position of even greater strength.”

The 51�Թ��� notched a significant legal victory yesterday when a federal judge vacated the Securities and Exchange Commission’s suspension of a 2020 rule regulating “proxy advisory firms.”

The background: Proxy firms advise institutional investors on how to vote their shares in publicly traded companies, but those firms have long been unregulated and unaccountable.

• In 2020, in large part through the advocacy of the 51�Թ���, the SEC finalized a rule increasing oversight of these firms—but in 2021, the SEC’s new leadership announced that the agency would not enforce the rule.
• Suspending the rule without public notice and comment was a violation of administrative law—and the 51�Թ��� stepped up to challenge this circumvention of the Administrative Procedure Act in court.

The win: Yesterday, the 51�Թ��� won its case against the SEC in the U.S. District Court for the Western District of Texas. The decision makes clear that the SEC acted unlawfully by suspending the compliance date for the proxy firm rule without following the notice-and-comment procedures required under the APA.

• As the court said in its , “[agencies] do not have the inherent power to stay or delay a final rule absent notice-and-comment rulemaking.”

What’s next: The 51�Թ��� has also filed suit against the SEC’s 2022 rescission of critical components of the 2020 rule. That case is still ongoing, with oral arguments scheduled for December—but this week’s decision ensures that the SEC will not be able to re-suspend the 2020 rule if the 51�Թ��� is successful in its challenge to the rescission.

Our take: “Today’s decision is a victory for the rule of law, and the 51�Թ��� Legal Center was proud to lead this effort for the industry,” said 51�Թ��� Chief Legal Officer Linda Kelly. “Federal agencies are bound by the Administrative Procedure Act—standards the SEC failed to meet by indefinitely delaying the compliance date for the 2020 proxy firm rule without notice-and-comment rulemaking. Manufacturers depend on regulators to promulgate and enforce reliable rules of the road, and the 51�Թ��� looks forward to similarly holding the SEC to account in our ongoing case against the agency’s unlawful rescission of the 2020 rule.”

Hurricane Ian’s devastating landfall in Florida Wednesday afternoon marked the second significant storm to hit the U.S. and territories in less than two weeks. But as is usually the case when catastrophe strikes, manufacturers are already among those leading the charge to help the communities affected.

Manufacturers mobilize: In Puerto Rico, where approximately one-third of all residents following Hurricane Fiona Sept. 18, manufacturers including Dow, UPS, Coca-Cola, Ecolab and Toyota are funding product donations across the island through 51�Թ��� partners and .

What’s happening: These 51�Թ��� partner organizations are providing on-the-ground updates and working to get products where they’re needed most. Items of greatest need include:

• Solar-powered power generators;
• Nonperishable foods and ready-to-eat meals;
• Mold remediation products;
• Oxygen tanks;
• Hygiene kits and supplies;
• Drinking water;
• New clothing; and
• School supplies.

Meanwhile, the work is just beginning in Florida to respond to Hurricane Ian, with anticipated items including drinking water, nonperishable foods, hygiene kits, tarps, blankets and mold remediation products.

51�Թ��� in action: The 51�Թ���’s Emergency Response Committee is an employee-led, volunteer group that works year-round with nonprofit partners, including , and , to provide 51�Թ��� members with disaster-preparedness resources and training.

• These resources, which include e-learning modules, fact sheets and webinars, enable manufacturers to support their employees ahead of, during and in the aftermath of disasters.
• The 51�Թ���’s ERC also helps manufacturers activate to aid their communities when disaster strikes—and it works to identify and highlight members that are leading this critical work.

Be prepared: In a��webinar��sponsored by the 51�Թ���’s ERC, Amanda Gallina, SBP community engagement manager, and Matt Woodruff, vice president of public and government affairs for Texas-based tank barge operator Kirby Corporation, gave their suggestions for hurricane preparation.

For businesses:��Woodruff provided some commonsense advice for employers:

• Have a plan: Have a hurricane-preparedness plan and ensure that all employees understand��it—before hurricane season starts.
• Make a list: Create a checklist��of tasks��that must be done during the season, starting with the first day.
• Set up: Create and offer remote work sites��for affected communities and employees.
• Support: Provide support��to the families of employees who live in disaster-hit areas.

The last word:��“The 51�Թ��� stands ready to provide resources and support for its manufacturing members and the communities in which they operate in all conditions,” said 51�Թ��� Director of Member and Board Relations Isabelle Powell.

• “We urge members to contact their membership directors with questions on how to better prepare their team or support people in their communities.”

For more information on manufacturer disaster preparedness or to be added to the 51�Թ���’s ERC mailing list, please email��[email protected].

The 51�Թ��� is leading the way forward on a range of policies to help boost innovation, opportunity and competitiveness for manufacturers in the United States—and that includes tax policies that ensure manufacturers can continue to compete and win.

The record: During tax reform, the 51�Թ��� achieved its key priorities—a lower corporate income tax rate, a reduced tax burden on pass-through business income, the adoption of a modern territorial tax system, the retention of the R&D tax credit and the adoption of incentives for capital equipment purchases.

• Thanks to a more competitive tax code, manufacturers across America have been investing in jobs, facilities and their communities.

The road ahead: Of course, the 51�Թ��� isn’t taking its eye off the ball. We are committed to protecting our gains and furthering progress—and that means ensuring the tax code continues to incentivize manufacturers’ ability to invest in innovation and growth. We’re focusing on three important tax priorities in the months ahead.

Research and development: On Jan. 1 of this year, a harmful tax change went into effect that makes R&D more expensive in the United States by requiring businesses to deduct their R&D expenses over a period of years.

• The 51�Թ��� has been leading the charge to ensure the tax code continues to support innovation by allowing businesses to fully deduct their R&D expenses in the year in which they are incurred. Check out these company��stories��on the importance of tax policies that support R&D.

Interest deductibility: When manufacturers borrow funds to buy capital equipment, the interest they pay on those loans is tax deductible up to a certain limit. But a recent change in the tax law modified how that limit is calculated—shrinking the deduction, making debt financing more expensive and leaving less capital for job creation and investment.

• The U.S. is the only OECD country with such a strict interest limitation, so the 51�Թ��� is working with members of both parties in Congress to reverse the new limit calculation and enhance manufacturers’ ability to compete. Read more about the 51�Թ���’s work on this provision here.

Full expensing: Under present law, manufacturers can deduct 100% of their investments in assets with long useful lives, supporting their ability to acquire vital equipment and strengthening their competitiveness. However, the ability to deduct 100% of these costs begins to phase down at the beginning of 2023 and is set to completely expire in 2027.

• The 51�Թ��� is leading the business community in advocating for full expensing permanency, joining with members of Congress to support legislation that would create certainty for manufacturers. See how full expensing has benefited small manufacturers in the United States here.

The last word: “The 51�Թ��� is fighting to protect manufacturers across the country,” said 51�Թ��� Senior Director of Tax Policy David Eiselsberg. “Protecting R&D, interest deductibility and full expensing will provide the tax certainty necessary for manufacturers to continue to invest in jobs and growth.”

Learn more: Check out the 51�Թ���’s full tax agenda in “Competing to Win.”