Alabama U.S. Sens. Tommy Tuberville and Katie Britt recently joined U.S. Sen. John Barrasso, R-Wyoming, in introducing the Growing America’s Small Businesses and Manufacturing Act — a piece of legislation focused on expanding tax deductions for manufacturing, energy production and agriculture.
“This bill will reduce the tax burden for business owners purchasing equipment—including machinery, farming equipment, energy infrastructure, building upgrades, commercial vehicles, mining equipment, and more. This allows business owners to invest more into employee salaries, materials, and other critical business expenditures,” reads Tuberville’s official press release concerning the bill.
Specifically, the bill removes limitations on business interest deductions while also allowing businesses “to deduct the cost of certain business assets in the year they are purchased rather than depreciating them over time.” Machinery, mining tools, farming implements, energy production equipment, commercial vehicles and building upgrades are just some of the expenses that would be eligible for deduction. Additionally, the bill would raise the maximum cap for such deductions from $1 million to $2.5 million.
“I’ve said it many times—small businesses are the heart and soul of the American economy,” Tuberville said of the legislation. “Enabling Alabama’s over 420,000 small businesses to thrive is one of my top priorities here in Washington. Small businesses face an uphill challenge with heightened regulation and insane prices. Reducing taxes for these business owners will go a long way in lifting the burden they often face when purchasing crucial equipment needed to keep their doors open.”
The bill currently has 11 Republican co-sponsors, including Britt and Tuberville. Several organizations including the National Association of Manufacturers, the National Federation of Independent Business, and the Restore American Investment Now Coalition have also endorsed the Growing America’s Small Businesses and Manufacturing Act.
Additionally, both Sens. Britt and Tuberville are attached to the recently-introduced American Innovation and Jobs Act which looks to similarly expand research and development tax deductions for small businesses and startups in the U.S.
“China is on the move and would love nothing more than to make American innovation a thing of the past,” Tuberville said of that legislation. “Thankfully, President Trump is 100 percent committed to doing whatever it takes to put American businesses first on the world stage. This bill gives us the upper hand over China by investing in research and development projects based in the United States.”
“My support of the American Innovation and Jobs Act emphasizes my continued commitment to putting hardworking Americans first,” said Britt. “I’m grateful to join my colleagues in introducing this legislation to help small businesses invest in research and development with fewer barriers. It is absolutely imperative we remain global leaders in innovation, not only to outcompete the likes of China, but also to protect our national interests and support great American entrepreneurs.”
