The U.S. House of Representatives overwhelmingly passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024), which would reinstate the research and development (R&D) tax deduction – a top priority for the industry. The bipartisan bill passed by a vote of 357 to 70.
Since January 2022, businesses, including marine manufacturers, are required to spread R&D expenses over several years – also known as amortization – which has increased the cost of investing in innovation and technological advancements. The bill would reinstate the full deduction for domestic R&D expenses in the year in which those expenses occurred, thus allowing marine manufacturers to immediately deduct those expenses and remain competitive.
The bill would improve deductions for businesses purchasing machinery and equipment, in addition to other tax credits for housing and children. While the bill has strong bipartisan support, outlook remains uncertain in the U.S. Senate as concerns remain with a potential amendment process.
In the past week, NMMA sent a letter to House leadership, highlighting the industry’s support for the bill and urging for its swift passage. NMMA also joined NAM and 260 other associations and organizations on a letter urging Congress to pass the measure.
NMMA will continue monitoring the progress of negotiations in the Senate and advocating for priorities that assist marine manufacturers. For more information, please contact NMMA director of federal government relations, Clay Crabtree at email@example.com.