Manufacturers urge Congress to pass important tax extenders legislation

The National Tooling and Machining Association (NTMA), Cleveland, and the Precision Metalforming Association (PMA), Independence, Ohio, have urged Congress to pass a tax extenders bill this month that makes key tax provisions used by U.S. manufacturers permanent, including the R&D Tax Credit, Section 179 Expensing and extending Bonus Depreciation for all of 2014 and 2015. These tax provisions, which Congress allowed to expire last year, help NTMA and PMA members and thousands of other manufacturers across the country make investments in technology and hire more workers.

“It’s time for Congress to end the uncertainty and pass a tax extenders bill that makes permanent tax provisions that are boosting manufacturing and creating jobs,” said NTMA President Dave Tilstone. “Manufacturers need to plan ahead, and unfortunately Congress is not helping. Uncertainty from Washington about the future of key tax provisions used to grow our businesses causes manufacturers to slow or stop investing.”

“Last month, in Atlanta, at the FABTECH Exhibition – North America’s largest tradeshow for the metal forming, fabricating, welding, and metal finishing industries – tens of thousands of owners and executives of manufacturing companies were in the position of having to make decisions on investing hundreds of millions of dollars in new machines, technologies, software, and services, without knowing the status of Section 179 Expensing and Bonus Depreciation for either 2014 or for 2015,” said PMA President Bill Gaskin. “It was an absolute travesty that these manufacturers were forced to make these decisions without knowing how these expenditures would be treated for tax purposes. If Congress cannot make these provisions permanent, at the very least, they must extend them for all of 2014 and 2015. Congress needs to pass a tax extenders bill during the lame duck session.”