NAM (CONT’D FROM PAGE 16)
and spotlight the numerous companies that will be hard hit if pro-growth policies are not reinstated. Why it matters: All three of these tax provisions are crucial to manufacturers’ ability to innovate, invest in their employees and make the American economy more com- petitive. R&D: The U.S. is one of only two countries (the other being Belgium) that doesn’t permit immediate expensing of R&D costs, a vital incentive for innovation. China, on the other hand, gives companies a “super deduction” for R&D expenses. Interest deductibility: A recent tax policy change made it more expensive for manufacturers to make critical pur- chases for their facilities, by imposing a stricter standard for deducting interest. This is a particularly heavy burden for a capital-intensive industry like manufacturing, amount- ing to a tax on companies’ investments in their operations and workers. Full expensing: This provision allows companies to expense their equipment purchases in the year they are made, supporting manufacturers’ investments in their busi- nesses. But the policy is set to be phased out soon and must be saved, as it is crucial for small and medium-sized manufacturers looking to expand their operations. “Manufacturing is the backbone of America, and the NAM is going all-out to make sure Congress acts on these critical priorities,” said NAM Managing Vice President of CONTINUED ON PAGE 20
turers to benefit from these provisions for the 2022 and 2023 tax years. Here’s what the NAM is doing to reach the finish line and why it matters so much to the industry and to the economy as a whole. What we’re doing: The Executive Committee of the NAM Board of Directors recently sat down with House Speaker Mike Johnson (R-LA) to emphasize the importance and ur- gency of these measures. The Executive Committee has also raised the issue directly with the White House, and the NAM’s members — 90 percent of which are small and medium-sized firms —have been contacting legislators to urge immediate action since early this year. In addition, while pressing the case relentlessly with the White House and congressional leaders himself, NAM President and CEO Jay Timmons has met personally with House and Senate tax negotiators to make manufacturers’ case for these reforms. NAM experts have also hosted multiple briefings for key legislators and congressional staffers, featuring manu- facturers who explained how the withdrawal of these poli- cies has harmed their businesses. Ratcheting up the ante on air and online, the NAM has applied pressure publicly in key districts, running a new ad campaign urging congressional action that has garnered about 80 million impressions so far. It also launched an ac- tion center to help manufacturers contact their legislators
18 January 8, 2024
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