May 15, 2023

Tell Your Lawmakers To Reverse Harmful Tax Changes

As Connecting the Dots explained late last year, a provision that went into effect at the beginning of 2022 means businesses now can only amortize or deduct research and development (R&D) expenses over a period of years instead of deducting 100 percent of their expenses in the same year. (Same year deductions had been in place for nearly 70 years.)

If not reversed, this policy will continue to increase taxes on industrial metals companies.

According to a National Association of Manufacturers (NAM) analysis, the broad manufacturing sector could lose nearly 60,000 jobs and face an output decline of more than $31 billion if the change is not reversed. U.S. Sens. Maggie Hassan (D-N.H.) and Todd Young (R-Ind.) have introduced The American Innovation and Jobs Act, which would restore the immediate deductibility of R&D expenses and would expand eligibility for the refundable R&D tax credit so more startups and new businesses can use it.

Read more about the bill here.

The Metals Service Center Institute (MSCI) was part of a group of more than 400 organizations that sent a letter to U.S. House and Senate leaders asking them to restore the 100 percent deduction.

Want to make your voice heard on this issue? Please use NAM’s Action Center to send a letter to your senators and representatives in Congress asking them to vote to reverse this harmful tax change.

The NAM also has created a website to organize companies and advocates who want to ensure companies can continue to take advantage of a 100 percent deduction for the purchase of equipment and machinery in the tax year purchased.

The ability to deduct 100 percent of these costs began to phase down at the beginning of 2023 and is set to completely expire in 2027. The NAM’s new tool helps companies join the fight to reverse this harmful change. Why should you add your voice to this cause? By reducing the cost of machinery, full expensing ensures small and medium-sized companies can scale up their operations, strengthen their teams’ productivity, and create more products that improve the quality of life for everyone.

NAM’s website features a “Contact Congress” tool that lets individuals send customized letters to their member of Congress urging them to allow businesses to take 100 percent deductions for equipment and machinery purchases in the tax year of purchase. Log on now.

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