House Committees Advance Pro-Manufacturing Provisions in New Bill

This week, significant strides were made in Congress as key House Committees advanced legislation aimed at supporting manufacturing. This development leans into President Trump and House Republicans' agenda to consolidate reforms into one significant legislative package, edging closer to a congressional vote.

Legislative Advancements

The House Ways and Means Committee moved forward with a proposal to cement essential tax measures from the 2017 tax reform, while the House Energy and Commerce Committee gave the nod to a bill featuring pivotal energy and permitting provisions.

NAM's Role and Influence

The National Association of Manufacturers (NAM) has been at the forefront, spearheading efforts to extend manufacturing-friendly tax policies. The Ways and Means Committee’s approval included all of NAM’s prioritized tax strategies, alongside new pro-manufacturing measures. Prior to the legislative markup, NAM asserted that this bill would fortify manufacturers against potential tax hikes, fostering growth and job creation in the U.S.

• Committee Chairman Jason Smith (R-MO) highlighted the testimony of Courtney Silver, president of Ketchie, a family-owned firm in North Carolina, during the session, noting the advantages brought by the 2017 tax reforms.

Key Provisions in Ways and Means Bill

Included in the Ways and Means bill were NAM's priorities such as:

• Ensuring tax stability for small and family-owned manufacturers, encompassing a permanent increase in the pass-through deduction and preservation of individual tax rates and estate tax protections;
• Revitalized incentives for R&D, capital equipment purchases, and debt financing, with added support for small to medium-sized manufacturers, plus incentives for factory expansion and modernization;
• Maintaining the corporate tax rate and the current international tax framework.

Prior to the markup, NAM cautioned that not upholding these measures could result in a loss of nearly 6 million jobs across the U.S.

Energy and Commerce Committee Priorities

The Energy and Commerce Committee, responsible for health, energy, and technology issues in the reconciliation package, also saw NAM's priorities taking center stage. NAM supported various pivotal manufacturing measures, including:

• Reforming pharmacy benefit manager practices to boost transparency and curb escalating healthcare costs for manufacturing employees;
• Simplified permitting procedures to facilitate pipeline and energy infrastructure projects;
• Provisions to mitigate challenging environmental regulations hindering manufacturing growth.

The committee's recognition of the need for consistent regulation to foster the development and application of artificial intelligence in manufacturing was also well received by NAM.

Suggestions for Further Enhancements

NAM proposed additional enhancements to the bills, pointing out potential detrimental modifications to manufacturing incentives in tax codes, such as terminating the hydrogen production tax credit and imposing stringent restrictions on foreign sourcing for manufacturing and energy. These limitations could prevent the return of supply chains to the U.S., impacting energy and manufacturing investments.

• NAM emphasized the significance of these targeted incentives, which have led to billions of dollars in investments and job creation nationwide.

Future Steps

The House Budget Committee will now amalgamate the proposed bills in preparation for a forthcoming House floor vote. NAM President Jay Timmons highlighted the urgency and importance of swift congressional action to ensure economic growth and decision-making stability for businesses planning investments and job creation.

• He urged for a focus on building manufacturing facilities, increasing job opportunities, and lifting wages to contribute to a thriving society.
• “There are some things that the House didn’t do that we hope the Senate does to ensure that we have the ongoing investments for energy infrastructure and other energy projects here in the United States,” added Timmons.
• Ultimately, encouraging businesses to invest domestically remains the key priority for policymakers, he concluded.