Arrington Introduces ALIGN Act

Washington, D.C. - Today, House Budget Chairman Jodey Arrington (TX-19) led several lawmakers in introducing the Accelerate Long-Term Investment Growth Now (ALIGN) Act, legislation to make permanent one of the most pro-growth policies in the Tax Cuts and Jobs Act: full and immediate expensing.

"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 Chairman 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."

"Manufacturing is a capital-intensive industry, and reducing the cost of capital investments empowers our industry to create jobs and drive innovation. Manufacturers strongly support the ALIGN Act, which would permanently reinstate full expensing and help sustain the equipment and machinery purchases necessary for manufacturing growth," said Chris Netram, Managing Vice President of Policy, National Association of Manufacturers. "Congress must protect manufacturers from devastating tax increases by acting urgently to preserve the Tax Cuts and Jobs Act-including full expensing-as soon as possible."

"We applaud Congressman Arrington and Senator Lankford for introducing the ALIGN Act to permanently extend the full expensing tax provision. Full expensing is a commonsense, pro-growth tax policy that encourages businesses of all sizes to grow and re-invest in their communities. It is one of the most effective ways to spark economic growth as it incentivizes investment in new equipment, infrastructure and technology made here in the United States," said Whit Askew, Spokesman, Economic Investment Alliance. "The introduction of this important bill is a timely next step to ensure businesses can operate with the certainty needed to invest and compete in the global marketplace. We are excited to work with Congressman Arrington, Senator Lankford and other leaders to swiftly enact this critical legislation that will drive American competitiveness, promote job growth, improve supply chains, and bolster the U.S. economy."

The following Members of Congress joined Chairman Arrington's legislation as cosponsors: Ron Estes (KS-04), Darin LaHood (IL-16), Claudia Tenney (NY-24), Kevin Hern (OK-01), Vern Buchanan (FL-16), Beth Van Duyne (TX-24), Randy Feenstra (IA-04), Carol Miller (WV-01), Max Miller (OH-07), Russ Fulcher (ID-01), Mike Collins (GA-10), Nancy Mace (SC-01), Mike Carey (OH-15), David Kustoff (TN-08), Lloyd Smucker (PA-11).

Background:

• Full expensing, a key provision of the Tax Cuts and Jobs Act, allows businesses to deduct the full cost of new investments in the year they were made.
• In 2023, the provision phased down from a 100% deduction to 80%. This will drop annually by 20% until it is fully phased out in 2027.
• According to the National Association of Manufacturers, 88% of manufacturers cited higher tax burdens on manufacturing activities as a barrier to growing their workforce; investing in new equipment; or expanding facilities.
• There has been some form of full expensing in the tax code in 21 of the past 23 years-under both Democrat and Republican presidential administrations.
• The Tax Foundation has found that making full expensing permanent would increase long run economic output and add tens of thousands of jobs.

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