Electronics Industry Welcomes House Committee Passage of Tax Reform Legislation

IPC applauds Chairman Jason Smith (R-MO) and the House Ways and Means Committee for advancing legislation that includes several top priorities for U.S. electronics manufacturers. 

The bill preserves the 21% corporate tax rate, restores 100% bonus depreciation, reinstates immediate expensing of domestic R&D costs, and expands and makes permanent the Section 199A deduction for pass-through businesses – all called for by IPC.

“Today’s vote marks meaningful progress toward restoring American electronics manufacturing strength,” said Dr. John W. Mitchell, IPC president and CEO. “These provisions are proven tools that help manufacturers reinvest, innovate, and grow. In IPC’s recent member survey, manufacturers reported that these provisions of the 2017 tax reform bill directly influenced their ability to upgrade equipment, expand production, and invest in workforce and innovation. Their restoration will provide immediate and lasting benefits.”

Electronics are essential to virtually every sector of the economy, from defense and aerospace to vehicles, healthcare, commerce, high performance computing, and AI. Yet the United States still faces serious gaps in its electronics manufacturing base. Many IPC members have shared that without predictable, pro-growth tax policies, long-term investments in critical manufacturing capabilities, including R&D and capital infrastructure, become far more difficult.

“The bill advanced by the Ways and Means Committee today is a great example of the type of pro-growth policy needed as part of a proactive strategy to build a stronger domestic electronics ecosystem in the United States.” said Mitchell.

“We’re encouraged by this strong step forward and urge Congress to continue building on this momentum,” said Mitchell.