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  • Press Release

ACC Applauds Action on Business Tax Credits, Urges House and Senate Approval

Jennifer Scott

WASHINGTON (January 17, 2024) — The American Chemistry Council (ACC) issued the following statement in response to the announcement of a bipartisan, bicameral tax framework by House Ways and Means Committee Chairman Jason Smith (MO-08) and Senate Finance Committee Chairman Ron Wyden (D-OR).

“We commend Chairman Smith and Chairman Wyden for including critically needed business tax provisions as part of the bipartisan, bicameral tax framework. These sound policies incentivize capital investment, job creation, and the global competitiveness of U.S. businesses. We urge House and Senate lawmakers to act to restore immediate R&D expensing, end a strict limitation on interest deductibility under Section 163(j), and return to full expensing for capital investments.

“Historically, businesses have been able to fully expense R&D costs in the year incurred. Requiring businesses to amortize these costs increases outlays, disrupts cash flow, deters job creation, and discourages domestic R&D activity. Meanwhile, the phase-out of full expensing for the purchase of some machinery and equipment eliminates a vital mechanism for companies to invest in their businesses, stay competitive, and fuel the U.S. economy. Limitations on interest deductibility increase financing costs when companies are already struggling with higher interest rates.

“We applaud the recent progress on these urgent tax policy priorities for U.S. businesses. We urge swift action by the House and Senate to ensure they become law.”

American Chemistry Council

The American Chemistry Council’s mission is to advocate for the people, policy, and products of chemistry that make the United States the global leader in innovation and manufacturing. To achieve this, we: Champion science-based policy solutions across all levels of government; Drive continuous performance improvement to protect employees and communities through Responsible Care®; Foster the development of sustainability practices throughout ACC member companies; and Communicate authentically with communities about challenges and solutions for a safer, healthier and more sustainable way of life. Our vision is a world made better by chemistry, where people live happier, healthier, and more prosperous lives, safely and sustainably—for generations to come.

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