The bill is H.R. 6049. Sens. Baucus and Grassley are speaking to set up the debate.
The NAM sent a “Key Vote” letter to the Senate yesterday emphasizing the association’s position on the bill and planned amendments, specifically the Baucus/Grassley individual/business extenders amendment. Excerpt, citing the provisions NAM supports:
- A seamless extension of a strengthened R&D credit. Manufacturers claim more than 70 percent of the R&D credit, and R&D fuels innovation that translates into new products and increased productivity. Only R&D performed in the United States qualifies for the credit, and 70 percent of credit dollars are used for salaries of employees engaged in R&D. A seamless extension of the credit will help ensure that innovation and quality R&D jobs will stay — and grow — in the United States. To be sure, this is not a perfect solution, and the NAM continues to believe a strengthened R&D credit must be permanent.
- An extension of deferral of U.S. tax on active business global financing income. While this provision — also known as an exemption from subpart F for active financing income — typically is associated with financial service firms, it also is important to U.S. manufacturers with finance and credit affiliates that provide financing for overseas buyers. The ability to provide competitive financing for customers has a direct and positive impact on U.S. exports and manufacturing jobs.
- An extension of the look-through rules for payments between related foreign corporations. Without an extension of “look-through” treatment for payments of dividends, interest, rents and royalties, American companies would be subject to immediate U.S. taxation when they redeploy foreign earnings from active business operations in foreign markets. Foreign businesses competing in the same markets pay no such tax to their home countries. If these rules expire, U.S. companies would be at a competitive disadvantage, putting American jobs at risk.
Key vote are used by the NAM to determine a member of Congress’ record on manufacturing issues.
UPDATE (12:25 p.m.): Another key vote letter this morning urging Senators to oppose the fully offset Alternative Minimum Tax (AMT) amendment to H.R. 6049 due to its burdensome taxes on American companies and harmful effect on the economy.
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