U.S. Tax Legislation Is In Trouble, So Show Your Support Now!

The Washington, D.C.-based news outlet Punchbowl has reported that Senate Finance Committee Ranking Member Michael Crapo (R-Idaho) privately has told his Republicans colleagues last week that he does not want to act on a House-approved tax bill this year. As Connecting the Dots readers are well aware, the Metals Service Center Institute, the National Association of Manufacturers (NAM), the U.S. Chamber of Commerce, and dozens of other business groups strongly support this legislation, which 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 this legislation is signed into law.

That relief is needed. An overwhelming majority, 89 percent, of respondents to NAM’s 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.

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 parties together to make House passage of this bill possible. Industrial metals leaders and other employees should call on members of the U.S. Senate to quickly approve this important legislation. Please use resources at NAM’s Tax Action Center, available at this link, to tell your senators to support this legislation.