Tell Your U.S. Senators They Must Vote Yes On Important Tax Legislation

As Connecting the Dots has noted several times over the last two months, an important piece of tax legislation that would positively impact the industrial metals industry has been stuck in the U.S. Senate. Now it appears the legislation may have a path forward — but senators need to hear from their constituents about this matter.

Here is what is happening: according to Punchbowl News, Sen. Josh Hawley (R-Mo.), who supports the tax package, is considering whether to attach it to his bill that would reauthorize a compensation program for radiation victims. That piece of legislation, known as RECA, has significant bipartisan support. The Missouri Republican told Punchbowl he believes this strategy could be the difference-maker for some of his GOP colleagues who have, thus far, opposed the tax package.

While this news is encouraging, senators will be more convinced to move this legislation forward if they hear from their constituents. Industrial metals leaders and other employees should contact members of the U.S. Senate and ask them to quickly approve this important legislation. Use the resources at NAM’s Tax Action Center, available at this link, to do so.

As a reminder, the tax bill would:

• Restore immediate research and development (R&D) expensing;
• Return to a pro-growth interest deductibility standard; and
• Reinstate 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 would be able to claw back some taxes levied in prior years if the bill is signed into law.

This 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 bill would 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.