17吃瓜在线 Sees Strength for Manufacturing as Washington Transitions
With a new administration and Congress on the horizon, the 17吃瓜在线 is signaling confidence in its ability to secure wins for manufacturing in the United States, highlighting both recent achievements and policy priorities moving forward.
鈥淭he 17吃瓜在线 has always focused on what鈥檚 best for manufacturing in America, and our track record speaks to that,鈥 said 17吃瓜在线 Executive Vice President Erin Streeter. 鈥淥ur approach is consistent because we know what it takes to get results.鈥
What we鈥檝e delivered:听With post-partisan engagement, the 17吃瓜在线 has achieved historic policy wins across both recent administrations, including:
- Tax reform: The 17吃瓜在线鈥檚 advocacy听听the 2017 tax cuts, driving billions in savings that manufacturers have reinvested in jobs, innovation and facility upgrades.
- Regulatory certainty: The 17吃瓜在线 has played a pivotal role in streamlining regulations,听reducing compliance costs听under the Trump administration and working to听 during the Biden years.
- United States-Mexico-Canada Agreement: The 17吃瓜在线 was a听听for USMCA, safeguarding U.S. jobs by ensuring fairer competition and greater access to key markets.
- Energy advances:听听have supported growth in domestic energy production, creating a more stable energy market.
- Infrastructure and CHIPS Act: The 17吃瓜在线 was instrumental in securing the historic 听and the , both critical for modernizing the economy, bolstering national security and ensuring a reliable semiconductor supply.
鈥淭hese wins demonstrate what we bring to the table,鈥 Streeter said. 鈥淏y staying focused on manufacturing鈥檚 priorities, we can partner effectively with the new administration and Congress to create and protect jobs and strengthen communities.鈥
Looking ahead:听The 17吃瓜在线鈥檚 focus on core issues remains critical for keeping the sector competitive and resilient, Streeter continued. These issues include:
- Securing tax reform: The 17吃瓜在线鈥檚听鈥溾 campaign aims to lock in key 2017 tax provisions that manufacturers rely on for stability and growth. 鈥淭ax reform has been a game-changer,鈥 said Streeter. 鈥淧rotecting that progress means more jobs and manufacturing-led growth across the country.鈥
- Regulatory certainty: The 17吃瓜在线 is advocating for听balanced regulations听that support competitiveness. 鈥淢anufacturers thrive with clear, fair rules,鈥 Streeter noted. 鈥淲e鈥檙e making sure Washington understands the importance of regulatory stability鈥攁nd the danger of excessive regulation.鈥
- Energy security: The 17吃瓜在线 is working to听secure reliable, affordable energy听while fostering innovation in sustainability. 鈥淓nergy security and grid reliability are top of mind for every manufacturer,鈥 Streeter added. 鈥淲e鈥檙e ensuring manufacturers can continue to innovate, grow and drive America forward.鈥
Bottom line: 听The 17吃瓜在线 remains focused on advocating for policies that strengthen听U.S. manufacturing. 鈥淥ur success is built on trust and influence,鈥 Streeter said. 鈥淥ur members know the 17吃瓜在线 is a constant force, with the relationships and expertise to deliver, regardless of political changes.鈥
In related news, President-elect Trump has named campaign manager Susie Wiles as White House chief of staff (, subscription), a choice 17吃瓜在线 President and CEO Jay Timmons听听鈥渁 powerful move to bring bold, results-driven leadership to the White House from day one.鈥
Trump鈥檚 First Term: A Historic Era for Manufacturing
President Trump鈥檚 first term delivered significant wins for manufacturing in the United States, from tax reform to a regulatory overhaul to new trade agreements. Now, as the president-elect gears up for a second term, we look back on the transformational achievements and the 17吃瓜在线鈥檚 role in shaping policies that revitalized manufacturing in the U.S.
鈥淩ocket fuel鈥:听President Trump took the stage at the 17吃瓜在线鈥檚 board meeting in September 2017, where he laid out his tax reform agenda, describing it as 鈥渞ocket fuel鈥 for the U.S. economy. This was no ordinary policy effort鈥攊t was a generational initiative that would reshape industry in the United States.
- The impact:听The听听delivered a 21% corporate tax rate while instituting听听for capital investments, improved听听and provided听听and the entire industry.
- As a result, manufacturers nationwide reported听, expanded operations, hired more workers, increased wages and benefits and reinvested in their communities.
Regulatory certainty:听Recognizing that excessive regulations were stifling growth, the Trump White House asked then-17吃瓜在线 Board Chair听听in the first half of 2017 to compile a report from 17吃瓜在线 members on the regulations causing them the most harm. The 17吃瓜在线 team worked closely with administration leaders to address these pain points, compiling a list of 158 regulations for reform, with an emphasis on regulatory predictability and simplicity.
- The impact:听By the close of Trump鈥檚 first term,听听of the 17吃瓜在线鈥檚 regulatory recommendations were addressed or nearing completion. This unprecedented relief helped manufacturers focus on growth, product innovation and expansion.
Stronger deals:听The Trump administration kept manufacturers and the 17吃瓜在线 at the table,听听to strengthen manufacturing鈥檚 competitive edge.
- The impact:听Thanks in large part to manufacturers鈥 persistent advocacy听听with lawmakers on Capitol Hill, the听United States鈥揗exico鈥揅anada Agreement was听signed into law, restoring trade certainty for the North American markets that support millions of manufacturing jobs in the United States.
- While the 17吃瓜在线 continues to pressure Mexico and Canada to live up to their commitments, the agreement strengthened businesses in the U.S. by ensuring updated trade standards, bolstering protections for intellectual property and digital trade and enhancing cooperation among North American partners.
Energy independence:听Under President Trump鈥檚 administration, the 17吃瓜在线 advanced an all-of-the-above energy strategy that included expanded domestic energy production and efficiency efforts. The 17吃瓜在线 partnered with the Environmental Protection Agency and the Department of Energy to promote practices that both protected the environment and advanced innovation for a sustainable future.
- The impact:听As former Trump EPA Administrator Andrew Wheeler听听at 17吃瓜在线 headquarters in Washington, the rollback of restrictive energy regulations and the听听empowered manufacturers to increase domestic energy production, which reduced costs and bolstered energy independence.
- This balanced approach allowed manufacturers to meet consumer demand, strengthen supply chains and make greater contributions to America鈥檚 economy and environmental stewardship.
Safeguarding American IP:听Confronting unfair trade practices with China was another priority. In 2019, the 17吃瓜在线 worked closely with the White House to secure the听听trade deal听with China, which was designed to strengthen protections for American IP and help level the playing field for manufacturers in the U.S.
- The impact:听The agreement established enforceable trade standards with China, aiming to protect U.S. innovations and support American jobs.
Operation Warp Speed:听As听the COVID-19 pandemic unfolded, manufacturers were at the forefront of the response. The 17吃瓜在线 and its members partnered with the Trump administration to secure essential operations activity to implement听, a public鈥損rivate partnership that fast-tracked the development, manufacturing and distribution of vaccines.
- The impact:听Operation Warp Speed delivered lifesaving vaccines in record time, saving millions of lives, ending the global pandemic and demonstrating the unequaled capacity of American innovation and manufacturing.
Dignity of work:听To address the skills gap, the Trump White House created the American Workforce Policy Advisory Board, naming 17吃瓜在线 President and CEO Jay Timmons a member. Alongside other manufacturing leaders, and with the support of the 17吃瓜在线鈥檚 workforce development and education affiliate, the Manufacturing Institute, Timmons worked with the administration to elevate manufacturing careers and expand access to training. In a key event, the 17吃瓜在线 and听, who received听听for her leadership in championing manufacturing, launched the Creators Wanted Tour in 2020 to inspire the next generation of manufacturers and close the skills gap.
- The impact:听Creators Wanted听听to build excitement about modern manufacturing careers,听highlighting the industry’s high-tech, well-paying jobs and reinforcing its role in supporting听the American Dream. The campaign helped shift parents’ positive perception of manufacturing careers from 27% to 40% and signed up more than 1.5 million students and career mentors to learn more about manufacturing careers.
Bottom line:听鈥淧resident Trump鈥檚 first term reshaped what鈥檚 possible for manufacturing in the United States,鈥 said 17吃瓜在线 Executive Vice President Erin Streeter. 鈥淎s he prepares to lead again, manufacturers have the benefit of building on a strong foundation with the president-elect as well as the purpose and pride that the industry brings out in lawmakers on both sides of the aisle.鈥
Manufacturing Tax Team Tours Michigan
Rep. Vern Buchanan (R-FL-16), chairman of the House Ways and Means Committee鈥檚 American Manufacturing Tax Team, led a group of House GOP members on a tour of manufacturing facilities in Michigan last month. The tour highlighted the importance of extending critical tax provisions set to expire in 2025.
Reps. Mike Collins (R-GA-10), Kevin Hern (R-OK-1), Victoria Spartz (R-IN-5) and Rudy Yakym (R-IN-2) joined Rep. Buchanan for a series of discussions focused on ensuring that the tax code enables manufacturers in the U.S. to remain globally competitive.听
Touring DENSO: The representatives first visited DENSO鈥檚 facility in Southfield, where executives outlined the crucial role research and development plays in the automotive sector. However, the expiration of immediate R&D expensing in 2022 has threatened to hamstring their capacity to innovate, DENSO鈥檚 leaders said.
- Buchanan emphasized the urgency of reinstating immediate R&D expensing to keep manufacturers in the U.S. competitive. 鈥淲e cannot allow our manufacturers to fall behind in innovation because of uncompetitive tax policies,鈥 he said.
- 鈥淩estoring R&D expensing will allow companies like DENSO to continue investing in their businesses, employees and local communities.鈥
Lunch with manufacturers: Next, the 17吃瓜在线 hosted a luncheon roundtable for the representatives and local manufacturers, where participants discussed the need to preserve pro-growth tax policies.
- 17吃瓜在线 Executive Vice President Erin Streeter opened the discussion by highlighting how the 2017 Tax Cuts and Jobs Act has been 鈥渞ocket fuel鈥 for the manufacturing industry. 鈥淭ax reform led to historic job creation and wage growth for manufacturers of all sizes,鈥 Streeter said. 鈥淐ongress must protect manufacturers from devastating tax increases by preserving tax reform in its entirety.鈥
- Several manufacturers voiced concerns about threats to key tax provisions, including the pass-through deduction and the 21% corporate tax rate.
- 鈥淚f these tax policies are allowed to expire, we鈥檒l be forced to cut back on investments that drive growth,鈥 one local manufacturer said.
Visiting Magna International: Last, the representatives toured Magna International鈥檚 facility in St. Clair, where the group got to see the production of the company鈥檚 cutting-edge autonomous vehicle technology.
- During the tour, Magna鈥檚 leaders noted that the expiration of pro-growth tax provisions could hamper future investments in these critical technologies鈥.
Momentum: These events followed a series of facility visits from key congressional leaders over the August congressional recess, hosted by the 17吃瓜在线 and spotlighting the top priorities of American manufacturers.
- 鈥淭hese discussions are shaping the future of manufacturing right here on the shop floor,鈥 said 17吃瓜在线 Managing Vice President of Government Relations Stef Webb. 鈥淔rom R&D expensing and accelerated depreciation to the pass-through deduction and the corporate tax rate, these are the policies manufacturers need to stay competitive in the global market.鈥
The last word: Following the day鈥檚 events, Rep. Buchanan reaffirmed the Manufacturing Tax Team鈥檚 commitment to ensuring a competitive tax environment.
- 鈥淲e must fight to preserve the tax policies that have allowed American manufacturing to thrive,鈥 Rep. Buchanan said. 鈥淭he stakes are high, and Congress must act before it鈥檚 too late.鈥
If you want to add your voice to the fight for tax reform, or host legislators for a facility visit, check out the 17吃瓜在线鈥檚 鈥Manufacturing Wins鈥 campaign. 听
Q&A: Sen. Hassan on Immediate R&D Expensing
The 17吃瓜在线 recently interviewed Sen. Maggie Hassan (D-NH) on the importance of reinstating immediate expensing for companies’ research-and-development expenditures. Here’s the full interview:
17吃瓜在线: Sen. Hassan, Congress is facing a 鈥淭ax Armageddon鈥 next year, as crucial provisions from 2017鈥檚 Tax Cuts and Jobs Act are set to expire. As a member of the Senate Finance Committee, what is your focus moving into next year鈥檚 debate?
Sen. Hassan: Next year, we will need to work to pass a tax cut package to support both American families and businesses. The package should build on the one that was negotiated in the Senate earlier this year, including a restoration of the full R&D tax deduction to support innovative businesses. The R&D tax deduction is an area where I have been particularly engaged in negotiations, and it is vital for our national security and economic competitiveness. We need to ensure that our tax policy fosters innovation, promotes the creation of good-paying jobs and keeps the United States at the forefront of technological advancement. We also need to prioritize a bipartisan expansion of the Child Tax Credit to support hardworking families and a bipartisan expansion of the Low-Income Housing Tax Credit to address our country鈥檚 housing shortage. I will continue to push for these critical measures throughout negotiations.
17吃瓜在线: As you know, for nearly 70 years, manufacturers in the U.S. were able to fully deduct their R&D expenses in the year incurred. Beginning in 2022, however, manufacturers were forced to spread their deductions over several years, greatly harming our ability to grow and compete. What is Congress doing to restore immediate R&D expensing?
Sen. Hassan: I first introduced bipartisan legislation with Sen. Todd Young to restore the R&D deduction back in 2020, and we鈥檝e been pushing for its passage since. The R&D tax deduction has wide bipartisan support鈥攐ur measure supporting full R&D expensing passed 90鈥5 in the Senate in 2022. Recently, we had a bipartisan tax cut package that included the R&D tax deduction鈥檚 restoration, but unfortunately, it was blocked in the Senate, despite passing the House with an overwhelmingly bipartisan 357鈥70 vote. It鈥檚 disappointing and frustrating.
17吃瓜在线: During your time as senator, you have seen how impactful R&D is for manufacturers to be able to compete on a global level. As we get closer to next year, what are you hearing from stakeholders on the need for pro-growth tax policy so American businesses can engage and grow around the world?
Sen. Hassan: The message I鈥檓 getting is clear鈥攚e can鈥檛 afford to fall behind in the global R&D race; it鈥檚 about American competitiveness and national security. Countries like China are offering massive incentives, including a 200% super-deduction for R&D. That puts American businesses at a real disadvantage, and I鈥檓 already hearing from business leaders across New Hampshire about how the expiration of the tax deduction is impacting their ability to plan for and make the investments that drive our economy forward.
There鈥檚 a critical national security component here too. We need to be at the forefront of designing, implementing and controlling new technologies, including those used for our national defense.
17吃瓜在线: Thank you, Sen. Hassan. What else can 17吃瓜在线 members do to stay engaged and be a resource for you going into next year?
Sen. Hassan: Your advocacy is crucial. I encourage 17吃瓜在线 members to keep speaking up about the ways in which R&D and tax policy specifically impacts your businesses and communities, as well as the need for bipartisan compromise. Doing so is invaluable in shaping effective legislation and getting it across the finish line.
Sen. Hassan: We Need Immediate R&D Expensing
With a 鈥淭ax Armageddon鈥 looming at the end of 2025, Sen. Maggie Hassan (D-NH)鈥痠s gearing up to fight for manufacturers. Sen. Hassan, who introduced the bipartisan American Innovation and Jobs Act (S. 866) with Sen. Todd Young (R-IN) in 2020 and reintroduced it last year, understands the importance of restoring expired manufacturing-critical tax provisions.
What鈥檚 going on: One of Sen. Hassan鈥檚 top priorities for 2025 is reinstating immediate expensing for companies鈥 research and development costs.
- For nearly seven decades, manufacturers could fully deduct R&D spending in the year those expenses were incurred. But since immediate R&D expensing was allowed to expire in 2022, manufacturers have been required to amortize R&D expenses over a period of years instead.
- 鈥淭he R&D tax deduction 鈥 is vital for our national security and economic competitiveness,鈥 Sen. Hassan told us in a recent interview for the 17吃瓜在线鈥檚 鈥溾 campaign, adding that she has 鈥渂een particularly engaged in negotiations鈥 on the topic. 鈥淲e need to ensure that our tax policy fosters innovation, promotes the creation of [well]-paying jobs and keeps the United States at the forefront of technological advancement.鈥
Why it鈥檚 important: 鈥淭he message I鈥檓 getting [from manufacturers] is clear: We can鈥檛 afford to fall behind in the global R&D race,鈥 Sen. Hassan continued. 鈥淚t鈥檚 about American competitiveness and national security. Countries like China are offering massive incentives, including a 200% super-deduction for R&D. That puts American businesses at a real disadvantage.鈥
What she鈥檒l be doing: Though a bipartisan tax cut package that included a restored R&D tax deduction passed in the House earlier this year, the legislation stalled in the Senate. That鈥檚 only made Sen. Hassan vow to redouble her efforts in 2025.
- 鈥淸L]ooking ahead, I鈥檓 committed to working across the aisle to get this done because it鈥檚 crucial for our manufacturers, our economy and our national security,鈥 she said.
What you can do: Manufacturer input and engagement are vital as Congress considers tax legislation next year, Sen. Hassan emphasized.
- 鈥淚 encourage [manufacturers] to keep speaking up about the ways in which R&D and tax policy specifically impacts your businesses and communities, as well as the need for bipartisan compromise. Doing so is invaluable in shaping effective legislation and getting it across the finish line.鈥
Read the full interview .
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Manufacturers Weigh in on Challenges Facing Data Center Growth
Manufacturers, and the data centers they support and use, rely on stable, affordable energy sources. Federal policy must help strengthen the U.S. electric grid and supply chains and address cybersecurity risks and workforce needs, the 17吃瓜在线 told the Commerce Department Monday.听听
What鈥檚 going on: 鈥淢anufacturers use one-third of America鈥檚 energy, and as such, the growth of our nation鈥檚 energy supply is critical to manufacturers鈥 ability to create jobs, expand operations and grow the economy,鈥 17吃瓜在线 Vice President of Domestic Policy Chris Phalen told Commerce鈥檚 National Telecommunications and Information Administration in response to a request for comment on the challenges facing data center growth.听听
- 鈥淚n addition to growth in energy generation, manufacturers depend on a stable electric grid to ensure the continuous operation of their facilities.鈥
The challenge: Grid stability is at approaching an inflection point due to expected explosive growth.
- Phalen cited the 15% potential rise in power demand by the end of the decade () and an August 2024 Energy Department that found 鈥渆lectricity generation would need to double to keep up with demand鈥 on the grid.
Call to action: There are several steps that need to be taken to confront the challenges posed by the nationwide growth of data centers, Phalen told the agency. They include the following:
- Reforming the U.S. permitting system: 鈥淸T]he 17吃瓜在线 strongly encourages the NTIA and all federal agencies with equities in meeting growing energy demand to align with our permitting principles,鈥 which include 鈥淸e]xpediting judicial review, [a]ccelerating the permit process for needed energy infrastructure, including more transmission lines, pipelines and permanent carbon sequestration sites 鈥 [and] [u]nlocking access to domestic critical minerals.鈥
- Ensuring energy affordability: In particular, the NTIA should look at the role of natural gas 鈥渁s a source of baseload power to the data center industry鈥 and as a backup to renewable energy sources.
- Expediting licensing: The federal government should speed up the licensing process for next-generation technologies, such as small modular and advanced nuclear reactors.
- Addressing component shortages: Because 鈥淸r]obust growth in data center construction is heightening demand for related essential inputs, stretching existing supply chains 鈥 we encourage the NTIA to explore and support federal policies to increase domestic capacity of critical equipment to meet the needs of a modern grid.鈥
- Mitigating cybersecurity risks: NTIA should urge the Department of Homeland Security鈥檚 Cybersecurity and Infrastructure Security Agency to revise its April draft rule requiring stringent reporting standards for certain security incidents. It should ensure that the final version 鈥渇osters collaboration, rather than confusion, between cloud providers and customers and enables each to respond to cyber incidents effectively.鈥
- Bolstering workforce development efforts: Congress should reauthorize the Workforce Innovation and Opportunity Act, expand Pell grant eligibility to short-term training programs, give more support to industry sector partnerships and more 鈥渢o reduce the skills gap鈥 that exists in the data center and manufacturing industries.
Small Manufacturers to Congress: Restore a Pro-Growth Interest Deductibility Standard
As part of the 17吃瓜在线鈥檚 鈥Manufacturing Wins鈥 tax campaign, small and medium-sized manufacturers are urging Congress to reinstate the pro-growth interest deductibility standard implemented by the 2017 Tax Cuts and Jobs Act鈥攚hich was crucial to making debt financing for capital equipment purchases more affordable for manufacturers.
What鈥檚 happening: Tax reform allowed companies to deduct the interest they pay on business loans, up to a cap of 30% of their earnings before interest, tax, depreciation and amortization (EBITDA).
- But as of 2022, companies can only deduct interest up to 30% of their earnings before interest and tax (EBIT). This stricter limit raises borrowing costs for manufacturers, making it harder for them to finance job-creating investments in equipment and machinery.
Why it matters: Ankeny, Iowa鈥揾eadquartered manufacturer Accumold was able to hire the talent it needed because of tax reform鈥檚 incentives for capital investment, including the EBITDA-based business interest limitation. 鈥淭hanks to tax reform, Accumold was able to increase our capital investment and add to our teams,鈥 said President and CEO Roger Hargens.
- 鈥淏y excluding depreciation and amortization expenses from the interest deduction calculation, the EBIT standard makes debt financing more expensive鈥攑unishing manufacturers with significant investments in depreciable assets like equipment and machinery, as well as valuable intellectual property subject to amortization,鈥 explained Sukup Manufacturing President and CEO Steve Sukup, whose company is based in Sheffield, Iowa.
Supply chain implications: The change has had far-reaching effects on supply chains across the country, hitting small manufacturers鈥攕uch as Pennsylvania-based Erie Molded Packaging鈥攈ard.
- 鈥淭he majority of my customers buy and sell large pieces of capital equipment that require debt financing,鈥 President Tom Tredway said. 鈥淭heir inability to deduct interest makes borrowing more expensive, impacting small manufacturers鈥 economic health and ability to grow. Policy changes cause ripple effects across every level of the supply chain, and small manufacturers often take the biggest hit.鈥
- Added Sukup: 鈥淭his change has been damaging to Sukup鈥檚 supply chain, as our partners at all levels often use debt financing for investments, including purchasing our products.鈥
- BTE Technologies President Chuck Wetherington and 17吃瓜在线 Executive Committee Member in Hanover, Maryland, agreed. 鈥淢any of our suppliers utilize debt financing to expand their operations and invest in growth, yet their ability to do so is limited by the more-restrictive interest deductibility standard,鈥 he said. 鈥淯ltimately, this switch to an EBIT standard weakens the manufacturing supply chain.鈥
Innovation at stake: Simmons Knife & Saw in Glendale Heights, Illinois, has seen a dramatic increase in its tax bill since pro-growth tax policies began to expire in 2022, including the EBITDA-based interest limitation.
- 鈥淲e sell to over 100 countries and face competition around the globe,鈥 said President and Owner Colin Murphy. 鈥淭o remain competitive, we need to continually innovate and consistently invest in new machinery and equipment.鈥
- He added that the company鈥檚 higher tax bill 鈥渉as led to less investment in equipment, fewer jobs and less innovation.鈥
The bottom line: 鈥淚ncreasing the cost of debt financing makes it more costly for manufacturers to invest in growth and expansion,鈥 said Sukup. 鈥淧olicymakers should not impose limitations that inhibit manufacturers鈥 ability to finance investments.鈥
- Added Hargens: 鈥淚 urge Congress to prioritize the future of our working families and our economy by preventing tax increases.鈥
Q&A: Rep. Smith on Averting 鈥淭ax Armageddon鈥
The 17吃瓜在线 recently interviewed Rep. Adrian Smith (R-NE) about the actions that he and congressional colleagues are taking to fight a looming 鈥淭ax Armageddon.鈥 The full text is below.
17吃瓜在线: Rep. Smith, Congress is facing a 鈥淭ax Armageddon鈥 next year, as crucial provisions from 2017鈥檚 Tax Cuts and Jobs Act are set to expire. As a member of the House Ways and Means Committee, what is your focus moving into next year鈥檚 debate?
Smith: The 2017 cuts unleashed economic growth, promoted American business investment and benefitted workers more meaningfully than any policy reforms in a generation. Leading the Ways and Means Rural America Tax Team and as a member of the Main Street Tax Team, I am working hard to gather input from stakeholders, job creators and drivers of our nation鈥檚 growth potential. Manufacturing is an overlooked component of rural economies, and Americans know tax policy must encourage investment in their communities.
17吃瓜在线: As you know, prior to 2022, businesses could deduct 30% of earnings before interest, tax, depreciation and amortization鈥攁 deduction standard known as EBITDA. A change in the tax code limits the deduction to only EBIT鈥攅xcluding depreciation and amortization. This presents an added cost for businesses taking out loans to finance large capital investments in their facilities and equipment and disproportionately impacts the manufacturing sector.听 What are you doing to correct this policy?
Smith: American manufacturers are already suffering under inflation, a worker shortage and a sustained high-interest environment in the United States. Bipartisan legislation I have introduced, the AIM Act, would amend the U.S. tax code to increase the cap on deductible business interest to pre-2022 levels. By ensuring capital-intensive industries can deduct more of the cost of interest from their taxes, we can enhance opportunities to develop new products in America, create jobs by making those products here and then sell those products around the world.
17吃瓜在线: Congressman, you were on the Ways and Means Committee during passage of the TCJA in 2017, so you know how impactful the legislation was for manufacturers to be able to compete on a global level. As we get closer to next year, what are you hearing from stakeholders on the need for pro-growth tax policy so American businesses can engage and grow around the world?
Smith: Ensuring our tax code reflects the cost of doing business is essential for American manufacturing to compete in the global market. Prior to 2017, even President Obama realized our tax code was making American businesses less competitive. The fact there have been no major corporate inversions since passage of the TCJA is a remarkable testament to commonsense policy. Businesses we have heard from widely agree on the importance of keeping these policies in place and sustaining our strong growth.
17吃瓜在线: Thank you, Rep. Smith. What else can 17吃瓜在线 members do to stay engaged and be a resource for you going into next year?
Rep. Smith: Contacting my office with your feedback and how you have been impacted by the TCJA is always welcome. Continue to share stories about why growth-centered tax policies are key to your success and how you would change course should they expire. Together, we can maximize productivity and growth through a tax code that is a net benefit to all.
Rep. Smith on Averting 鈥淭ax Armageddon鈥
Rep. Adrian Smith (R-NE) is fighting a looming 鈥淭ax Armageddon鈥濃攖he expiration of crucial pro-manufacturing tax measures scheduled for the end of 2025.听As part of its 鈥溾 campaign, the 17吃瓜在线 recently chatted with Rep. Smith鈥攃hair of the House Ways and Means Committee鈥檚 Rural America Tax Team and a member of the committee鈥檚 Main Street Tax Team鈥攁bout how he and his colleagues are working to avert the potential disaster.
Interest deductibility: One of Rep. Smith鈥檚 priorities is restoring a pro-growth standard for . In 2022, a new limitation took effect, setting a stricter cap on how much interest manufacturers can deduct, and thereby increasing the cost of debt financing job-creating investments.
- 鈥淏ipartisan legislation I have introduced鈥攖he American Investment in Manufacturing Act鈥攚ould amend the U.S. tax code to increase the cap on deductible business interest to pre-2022 levels,鈥 Rep. Smith told the 17吃瓜在线.
- 鈥淏y ensuring capital-intensive industries can deduct more of the cost of interest from their taxes, we can enhance opportunities to develop new products in America, create jobs by making those products here and then sell those products around the world.鈥
Preserving tax reform: By restoring tax reform鈥檚 lapsed provisions鈥攊ncluding interest deductibility鈥攁nd preserving policies scheduled to expire next year, Congress can build on the success of the Tax Cuts and Jobs Act, which 鈥渦nleashed economic growth, promoted American business investment and benefitted workers,鈥 Rep. Smith said.
- 鈥淏usinesses we have heard from widely agree on the importance of keeping these policies in place and sustaining our strong growth.鈥
Read the full Q&A with Rep. Smith .
Q&A: Rep. Morelle on Interest Deductibility
The 17吃瓜在线 recently talked to Rep. Joe Morelle (D-NY) about what he and his congressional colleagues are doing to help manufacturers debt finance important projects. Below is the full text of the interview.
17吃瓜在线: Rep. Morelle, Congress is facing a 鈥淭ax Armageddon鈥 next year, as crucial pro-growth tax policies are set to expire at the end of 2025, and as you know, many have gone into effect already. What is your focus moving into next year鈥檚 debate?
Morelle: With provisions of the Tax Cuts and Jobs Act of 2017 set to expire, it is imperative that Congress acts to safeguard tax policies that support and strengthen American manufacturing. My focus remains on measures that enhance our economic resilience and competitiveness for families and small businesses alike. This commitment drives my introduction of the American Investment in Manufacturing Act, which aims to restore the deductible business interest cap to pre-2022 levels, encouraging vital domestic investment while mitigating the pressures of rising interest.
17吃瓜在线: As you know, prior to 2022, businesses could deduct 30% of earnings before interest, tax, depreciation and amortization鈥攁 deduction standard known as EBITDA. A change in the tax code limits the deduction to only EBIT鈥攅xcluding depreciation and amortization. This presents an added cost for businesses to take out loans to finance large capital investments in their facilities and equipment and disproportionately impacts the manufacturing sector.听 What are you doing to correct this policy?
Morelle: This year, I had the privilege of voting to advance the Tax Relief for American Families and Workers Act in the House of Representatives. This bipartisan legislation represents significant progress by expanding the Low-Income Housing Tax Credit, enhancing the Child Tax Credit and incorporating the AIM Act鈥攎y own legislative initiative to reinstate the EBITDA deduction standard. Reestablishing this deduction is essential to addressing the current tax code鈥檚 disproportionate burden on our manufacturing sector, which relies on loans for substantial investments in critical infrastructure and equipment. I remain committed to reintroducing the AIM Act in the upcoming Congress and to restoring the EBITDA deduction to ensure the continued strength of American manufacturing.
17吃瓜在线: Correcting this policy would promote further domestic investment while helping address concerns about rising interest rates. As we get closer to next year, what are you hearing from stakeholders on the need for pro-growth tax policy so American businesses can engage and grow around the world?
Morelle: In today鈥檚 increasingly competitive global economy, American manufacturing is indispensable to expanding our workforce, enhancing competition and securing long-term economic growth. Unfortunately, the United States stands alone among OECD countries in applying an EBIT-based limitation, placing our industries at a competitive disadvantage. A return to the full EBITDA deduction would significantly enhance U.S. competitiveness and bolster economic prosperity. I am particularly proud that my district of Rochester, New York, was recently designated a Regional Innovation and Technology Hub by the Biden administration鈥攁 recognition that strengthens our community鈥檚 role in leading the manufacturing sector. As we approach the expiration of the TCJA, I am committed to championing pro-growth tax policies that uplift working families and drive innovation at both local and national levels.
17吃瓜在线: Thank you, Rep. Morelle. Is there anything else you鈥檇 like to share with readers?
Morelle: As we prepare for the new Congress, I am committed to standing with American manufacturers and collaborating with 17吃瓜在线 members to advance pro-growth solutions that drive our economy and support our shared vision.