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).

Our Message

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 rallied more than 1,300 companies and business associations, calling on Congress to protect businesses’ ability to immediately deduct R&D expenses, finance job-creating investments through a pro-growth interest deductibility standard and fully deduct capital equipment purchases.

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.