What’s Going On

The challenge: U.S. manufacturers, who drive more innovation than any other sector, face a harmful tax change that will drastically hinder R&D across the industry, threatening thousands of jobs and critical innovation that upholds America’s economy and national security.

What we’re doing about it: The NAM is rallying manufacturers to urge Congress to to support two bipartisan R&D bills that have been introduced in the House and Senate: the American Innovation and R&D Competitiveness Act (H.R. 2673), introduced by Reps. Ron Estes (R-KS) and John Larson (D-CT), and the American Innovation and Jobs Act (S. 866), introduced by Sens. Maggie Hassan (D-NH) and Todd Young (R-IN).

Take action below. Together, we can help to reverse this tax change, encourage R&D investment, support job growth and reinforce the industry’s competitiveness on the world stage.

Our Message

“Protecting R&D” Series: As part of our advocacy, the NAM is highlighting member stories that reinforce the importance of reversing the harmful R&D tax change. Can we share your story? Please contact NAM Senior Director of Tax Policy David Eiselsberg.

• Westminster Tool: Tax Change Throws a Wrench in Westminster Tool’s Operations
• The Hill: How Congress can reverse three limits on manufacturing’s growth
• Press Release: NAM Applauds Congressional Focus on Key Manufacturing Tax Provisions
• NAM Press Release: Sens. Hassan and Young Reintroduce Crucial R&D Legislation
• Tolmar, Inc: How a Tax Change Could Set Back Cancer Treatment
• Marlin Steel Wire Products: How a Tax Change Will Strangle a Small Manufacturer’s R&D
• Ultragenyx: Ultragenyx Fights for Cures Amid Rising R&D Costs
• International Paper: Why R&D Matters to International Paper
• Parts Life, Inc: How a Manufacturer Uses R&D to Keep Old Jets Flying
• O-I Glass, Inc.: Why Manufacturers Need R&D Tax Certainty
• Corning Incorporated: Corning Confronts R&D Hurdles
• Miltec UV: “We’re Gonna Get Hit Hard”: How an R&D Tax Policy Change Hurts Manufacturers
• Vermeer Corporation (IA): “Vermeer Corporation Speaks Out on R&D Tax Policy“
• Brewer Science (MO): “Why Policymakers Should Support—Not Hinder—R&D“
• The NAM: “Manufacturers Call for Repeal of Anti-Competitive R&D Tax Policy“

In Washington: The NAM is rallying America’s business community in our direct engagement with congressional leadership on the need to repeal the harmful R&D tax change. Read the NAM’s most recent letters to Congress:

The NAM’s most recent letter to congressional leadership, with support from more than 400 companies and business organizations, urges for the repeal of the harmful R&D amortization provision in order to ensure that the tax code continues to support innovation. The NAM letter warns that failing to reverse the amortization requirement “will cost well-paying jobs and reduce future innovation-directed R&D.”

The NAM’s September letter to members of the Senate Finance Committee and the House Ways and Means Committee reinforces that Congress can provide much-needed certainty by the end of 2022 by reversing the change to the tax treatment of R&D, helping to bolster job creation in U.S. manufacturing and secure the industry’s competitiveness on the world stage.