Manufacturers Applaud Bipartisan Agreement on tax provisions.
Press Release Summary:
NAM welcomed bipartisan agreement by Congress on tax provisions considered crucial to manufacturing growth/competition. Said agreement would make several key tax provisions for manufacturers permanent, including R&D tax credit, Section 179 expensing, and deferral for active financing income. Also, package would provide seamless multiyear extensions of 50+ other expired tax provisions. NAM's Dorothy Coleman called this announcement "a historic and very promising breakthrough."
Original Press Release:
Manufacturers Applaud Historic Agreement on Tax Provisions
Call for Quick Congressional Action to Help Generate Economic Growth
Washington, D.C. – The National Association of Manufacturers (NAM) welcomed a bipartisan agreement by Congress on a package of tax provisions critical to manufacturing growth and competition. The agreement would make permanent several key tax provisions for manufacturers, including the research and development (R&D) tax credit, Section 179 expensing and deferral for active financing income. The bipartisan package also would provide seamless multiyear extensions of more than 50 other expired tax provisions, including bonus depreciation and the “look-through” rule for controlled foreign corporations and suspend the medical device tax.
“This announcement is a historic and very promising breakthrough. Congress has signaled that it’s serious about helping manufacturers grow in the United States. Short of comprehensive tax reform, this is one of the most significant steps Congress has taken in decades to improve our out-of-date tax code for businesses,” said NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman. “Indeed, every manufacturer in the United States will benefit from at least one provision in the package. The R&D tax credit, investment incentives for manufacturers of all sizes and provisions that affect U.S. global companies are all key to helping manufacturers innovate, compete in a global marketplace and contribute to U.S. economic growth and job creation. That’s why for years, manufacturers have led the business community in aggressively advocating for these critically important tax provisions."
“Furthermore, suspension of the tax on medical devices will both reduce health care costs for employees and make medical device manufacturers in the United States more competitive. Manufacturers now call on Congress to move forward on this legislation as soon as possible and in doing so end the on-again, off-again nature of too many critical provisions in our tax code,” said Coleman.
“Permanent and multiyear extensions of the expired investment incentives will help manufacturers of all sizes, producing a positive ripple effect throughout the economy,” said Neenah Enterprises President and CEO and NAM Small and Medium Manufacturers Group Chair Tom Riordan. “The agreement will encourage businesses to invest in the capital equipment and machinery that will increase efficiency, productivity and growth—thanks to the permanent extension of enhanced Section 179 expensing and the multiyear extension of 50 percent first-year expensing.”
“The tax extenders deal, if acted upon, will make a positive difference for my company,” said Vermeer Corporation Chair of the Board Mary Andringa. “It offers manufacturers a much-needed bridge of certainty in the tax code by providing a long-term, and in some cases permanent, extension of the R&D credit, investment incentives for businesses of all sizes and provisions to increase international competitiveness.”
“U.S. manufacturers have the opportunity to grow, innovate and compete when they have certainty on these important provisions. By making permanent the R&D credit and investment incentives for businesses of all sizes, Congress is helping to provide that clarity,” said Marlin Steel Wire Products President and Owner and NAM Small and Medium Manufacturers Group Vice Chair Drew Greenblatt. "This will give us the confidence to invest in technology and in our companies despite a hazy outlook. It will make our employees more valuable and more productive. It will help us export and grow U.S. jobs."
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The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 14 million men and women, contributes $2.09 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
