U.S. House Approves Key Tax Bill, But Senators Need To Hear From You!

Bipartisanship is alive in the U.S. House of Representatives. On January 30, through an overwhelming 357-70 vote, lawmakers in the lower chamber of Congress approved the Tax Relief for American Families and Workers Act, which includes three priorities for which the Metals Service Center Institute has fought:

• Restoring immediate research and development (R&D) expensing;
• Returning to a pro-growth interest deductibility standard; and
• Reinstating full expensing, also known as 100 percent accelerated depreciation, for businesses’ capital investments.

This tax relief is retroactive and stretches back to tax years starting in 2022, meaning many businesses will be able to claw back some taxes levied in prior years if this legislation is signed into law. That relief is needed. An overwhelming majority, 89 percent, of respondents to the National Association of Manufacturers (NAM) fourth quarter of 2023 Manufacturers’ Outlook Survey said higher tax burdens on manufacturing make it more difficult for them to hire, buy new equipment, and expand their facilities. This piece of legislation will enable manufacturers to invest in their businesses, create jobs, and compete in the global marketplace.

The tax bill is particularly important for small and medium-sized manufacturers and metals firms, many of which experienced significant tax increases as a result of the expiration of the three provisions outlined above. The Tax Relief for American Families and Workers Act now moves to the U.S. Senate for a vote where it may face some opposition. Getting this legislation to President Joe Biden’s desk would be a huge victory for the industrial metals industry, and we need to make our voices heard.

MSCI member companies and its allies were critical in bringing lawmakers from both sides of the aisle together to make House passage of this bill possible. Industrial metals leaders and workers should call on members of the U.S. Senate to quickly approve this important legislation. You can use resources at NAM’s Tax Action Center, available at this link, to tell your senators to support this legislation.