Manufacturers urge restoration of immediate R&D and expensing to retain U.S. competitiveness
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Summary
Manufacturing owners said at the Ways and Means hearing that immediate expensing for R&D and full expensing of equipment purchases encouraged investment and hiring after 2017. Witnesses said those incentives boosted productivity and apprenticeships; several warned that the lapse of R&D expensing has slowed investment and could cede advantage to
Manufacturing witnesses told the House Ways and Means Committee that immediate expensing and other TCJA incentives were important drivers of investment and hiring in U.S. factories, and asked Congress to restore or make permanent those provisions to retain competitiveness against foreign jurisdictions.
Courtney Silver, owner of a third‑generation precision machine shop in Concord, N.C., said the firm’s best years followed the 2017 reforms. “Over 2018 and 2019, we were able to invest more than $1,000,000 in capital equipment and create new jobs,” she said. Silver testified immediate expensing and bonus depreciation altered the return‑on‑investment calculation and prompted purchases that otherwise were put on hold after expirations.
Brandon Duke and several members warned that rivals such as China offer competing R&D incentives that can attract investment if U.S. policy becomes less generous. Members asked how restored expensing would affect domestic manufacturing and inquired about metrics to track job and investment impacts.
Witnesses also described workforce benefits tied to investment cycles: Silver explained her company’s internship and apprenticeship pipeline, and said investments funded training and new hires. No legislation was adopted at the hearing; members requested further cost‑benefit analysis to compare U.S. expensing rules with international peers.
