WASHINGTON (January 31, 2024) — The American Chemistry Council (ACC) issued the following statement in response to House passage of legislation containing critically needed business tax provisions by a vote of 357-70.
“We commend House lawmakers for overwhelmingly approving bipartisan legislation that restores vital business tax provisions. These sound policies help spur capital investment that creates jobs and strengthens the global competitiveness of U.S. businesses. We urge the Senate to act promptly to restore immediate R&D expensing, end a strict limitation on interest deductibility, 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 House passage of these urgent tax policy priorities for U.S. businesses. We encourage swift action by the Senate to ensure they become law.”