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As we have been advocating for years, ACC urges Congress to take action now to restore immediate R&D expensing, revert to pre-2022 Section 163(j) interest deduction limitation based on EBIDTA and extend the full expensing provision. Taking such action through passage of the Tax Relief for American Families and Workers Act has bipartisan support and has the support of U.S. manufacturers including ACC members.
ACC members welcomed the enactment of the Advanced Manufacturing Production Tax Credit under Section 45X - the credit was viewed as transformative in the onshoring of manufacturing and was the topic of discussions at many companies as decisions were being made on the location of future investments in manufacturing. The credit’s value and the ability to monetize such value tilt the scales in such discussions to investment in the United States, even with strong countercurrents that would favor other countries.
ACC and its members are surprised and disappointed in the Section 45X notice of proposed rulemaking (NPRM) insofar as it announced a significant curtailment in the value of the Section 45X tax credit for those taxpayers producing electrode active materials (EAMs) and critical minerals. The statute states that the value of such credit shall be “10 percent of the costs incurred by the taxpayer with respect to production.”
ACC’s 190 members apply the science of chemistry to make innovative products, technologies, and services that make people’s lives better, healthier and safer. Our industry supports a vast supply chain. With $639 billion worth of shipments in 2022, we account for 11% of the world’s chemical production and provide more than a half a million high paying jobs. The US chemical industry is one of the world’s largest exporters at $179 billion, accounting for 10% of all US goods exports.
ACC welcomes the opportunity to comment on the interim guidance provided in the Notice and respectfully request that our comments be considered in the forthcoming proposed regulations.
ACC appreciates the opportunity to provide comments on Notice 2023-2 (the Notice) regarding section 4501, a one percent excise tax on repurchases of corporate stock (the Excise Tax), which was enacted as part of the Inflation Reduction Act. The Excise Tax applies to the fair market value of any stock repurchased by a U.S. corporation that is traded on a securities exchange. In the case of foreign-headquartered corporation, the Excise Tax applies to a purchase from third parties of foreign-parent stock by a U.S. corporation or partnership that is more than 50% owned, directly or indirectly, by such foreign parent.