Tax Benefits for Manufacturing

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The Week Ahead
Capitol Hill October 22, 2012 

When 113th Congress convenes in January, debate resumes on several proposals to create and maintain tax incentives for the manufacturing sector. Current federal law contains nine provisions or tax incentives for corporations engaged in manufacturing. Current benefits include the deferral of active income from controlled foreign subsidiaries, the R&D tax credit, expensing of outlays for R&D experimentation, and the accelerated depreciation of capital assets. Tax preferences create a revenue loss for the U.S. Treasury as a consequence they can be viewed as federal spending. A total of 10 federal programs target assistance for both large and small manufacturing firms. The below CRS Report provides details of manufacturing tax incentives with the following provided:

1. A brief description of the tax provision.
2. It’s section in the federal tax code.
3. It’s current status: temporary or permanent.
4. It’s estimated cost in federal revenue FY 2012.
5. A summary of the tax benefit to manufacturing firms.

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 Committee Hearing Schedule Highlights  

**Congress is in recess until Tuesday November 13th**

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