WASHINGTON (March 26, 2024) — The American Chemistry Council (ACC) issued the following statement after submitting a Statement for the Record in response to the Senate Finance Committee hearing, “American Made: Growing U.S. Manufacturing Through the Tax Code.” “We’re pleased that the Committee held this important hearing on the role of tax policy in driving U.S. manufacturing growth. Immediate R&D expensing, full expensing for capital investments, and ending a strict limitation on interest deductibility are smart policies that enable businesses to expand, innovate, and create jobs. House lawmakers have overwhelmingly approved legislation that restores these vital business tax provisions. We urge the Senate to act now.“Historically, businesses have been able to fully expense R&D costs in the year incurred. Requiring amortization of these costs increases outlays, disrupts cash flow, deters job creation, and discourages domestic R&D activity. The phase-out of full expensing for some machinery and equipment purchases eliminates a vital mechanism for companies to invest in their businesses. Limitations on interest deductibility increase financing costs when companies are already struggling with higher interest rates. “Our comments highlight significant concerns with proposals outlined by the Administration as part of the FY 2025 budget. We also note our significant interest and concerns regarding the implementation of certain tax credits included in the Inflation Reduction Act. We continue to oppose the reinstatement of the Superfund Tax, which imposes an excise tax on the sale or use of taxable chemicals and taxable substances. We urge repeal of this tax.”
