Scott, Lankford Invest in US Job Creators in Uncertain Economy
WASHINGTON – Senator Tim Scott (R-S.C.) joined Senator James Lankford (R-Okla.) in introducing the Accelerate Long-term Investment Growth Now (ALIGN) Act, which would make permanent a provision in the 2017 Tax Cuts and Jobs Act (TCJA) that allowed businesses to fully expense new investments, such as machinery and equipment, in the year of purchase. The provision began to phase out in the federal tax code starting at the end of 2022 and expires at the end of 2026.
Representative Jodey Arrington (R-Texas) is leading the bill’s introduction in the House of Representatives.
“This bill incentivizes business owners to create good-paying jobs, invest in local communities, and energize the American economy,” said Senator Scott. “In the midst of high inflation and expanded regulatory schemes, Congress should be laser-focused on encouraging businesses and job creators to drive investment and innovation. It will be a misstep if Congress fails to make this provision permanent.”
“Business expenses are not business profits, so they should not be taxed as profits,” said Senator Lankford. “The 2017 tax law encouraged more economic activity from our US manufacturers by allowing them to depreciate their capital and equipment during the year it was purchased instead of over years and years of tax returns. But that provision started phasing out at the end of 2022. High inflation and high costs for everything from gasoline to construction materials will continue to plague our economy unless we immediately pass my bill to allow businesses to invest in their employees and business future. Let’s get this passed and signed into law to help our vital US manufacturing sector and other US industries continue to create high-paying jobs.”
“There’s no bigger incentive in the tax code for job creation and economic expansion than allowing businesses, both large and small, to fully and immediately deduct the cost of new investments, equipment, and machinery,” said Representative Arrington. “Full expensing was a critical component to the Tax Cuts and Jobs Act, and the economic boom that ensued prior to the pandemic. The ALIGN Act will lower the cost of capital and simplify the tax code as businesses look to make vital investments, bring workers back, onshore manufacturing capabilities, and ramp up production. This legislation will lead to stronger growth, more jobs, increased productivity, and higher wages for working families.”
Senators Scott and Lankford are joined in introducing the bill by Senators Jim Risch (R-Idaho), Marco Rubio (R-FL), John Barrasso (R-Wyo.), Mike Braun (R-Ind.), Marsha Blackburn (R-Tenn.), Todd Young (R-Ind.), Steve Daines (R-Mont.), John Thune (R-S.D.), and John Boozman (R-Ark.).
The ALIGN Act:
- Makes permanent full and immediate expensing for the same property as allowed in TCJA; and
- Encourages businesses to grow and compete by fully aligning their expensing during the same year of investing in new equipment, technology, and their qualified property.
As Ranking Member of the Senate Committee on Banking, and member of the Senate Committees on Finance and Small Business and Entrepreneurship, Senator Scott’s efforts to protect and champion American workers include:
- Passing a resolution commemorating National Entrepreneurship Week while serving as cochair of the bipartisan Senate Entrepreneurship Caucus.
- Highlighting the need to increase opportunity for entrepreneurs and investors through capital markets during Senate Banking Committee hearing focused on entrepreneurs.
- Introducing legislation strengthening Opportunity Zones, the tax incentive for individuals who reinvest unrealized capital gains into high-impact projects in underserved communities.
- Backing a bill to help increase support to female entrepreneurs and women-owned businesses so they can start and expand their businesses and keep contributing to our economy.
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