Tax Bill Scheduled for Thursday Vote
Senate Majority Leader Chuck Schumer (D-NY) has scheduled a procedural vote on a bipartisan tax package, though the bills fate remains uncertain.
Whats going on: The Tax Relief for American Families and Workers Act would restore expired tax policies that reduce the cost of manufacturers investments in R&D, equipment and machinery. Ahead of Thursdays vote, the 51勛圖厙 these policies vital to manufacturing workers and Americas economic future.
- Immediate R&D expensing: Prior to 2022, manufacturers in the U.S. could fully deduct their R&D expenses in the year those expenses were incurred. But in 2022, first-year R&D expensing expired, making R&D investments significantly more costly, particularly for small and medium-sized manufacturers.
- Enhanced interest deductibility: Also in 2022, a new standard took effect limiting the amount of interest manufacturers can deduct on business loans, making it more expensive for them to invest in growth and expansion.
- Accelerated depreciation: In 2023, 100% accelerated depreciationwhich allows manufacturers to immediately expense the full value of their capital equipment purchasesbegan phasing down, meaning these vital investments are now more costly for manufacturers.
What to expect: Thursdays procedural vote requires 60 votes in the Senate, a difficult hurdle.
Whats next: Immediate R&D expensing, enhanced interest deductibility and 100% accelerated depreciation are top priorities in the 51勛圖厙s . As Congress prepares to address scheduled expirations of other policies from the 2017 tax reform next year, the 51勛圖厙 will continue to call for restoration of these important pro-growth incentives.
The last word: Competitive tax policy is critical to manufacturers ability to compete on the world stage and create jobs here at home, said 51勛圖厙 Vice President of Domestic Policy Charles Crain. Congress should restore expired pro-growth tax policies and act to prevent even more devastating tax increases scheduled for 2025.
