Susan Nordwick: Investing in manufacturing benefits Montana.

The House of Representatives overwhelmingly passed this bipartisan tax deal. But it is gathering dust in the Senate.

Senator Daines and Senator Tester will serve Montana well by working to pass TRAFWA. This legislation strengthens the Tax Cuts and Jobs Act of 2017 (TCJA) and continues the full expense provision for research and development investments. Montana manufacturers need this catalyst now to increase confidence in domestic investment.

We found that allowing companies to deduct the total cost of research and development expenses provides a strong incentive for Montana manufacturers to pursue new product development and process improvements. It didn’t just reduce taxable income. We fostered an environment where innovation thrives, cutting-edge products are produced, and new, high-quality jobs are created in Montana.

When companies pursue research and development projects, the wages of top talent can become a significant cost. That means startups and small businesses in Montana that operate on borrowed funds before their products hit the market will have to worry about paying Montana’s skilled workers. However, R&D costs can be fully expended, allowing companies to leverage top talent and avoid significant charges from the IRS.

Equally transformative was the TCJA’s allowance to fully expense investments in new equipment, machinery, and technology. In a sector driven by efficiency gains and technological advancements, fully amortizing these capital expenditures means you can modernize your operations more quickly, increasing your return on investment and eliminating costs that are too high. , a project that seems too risky may become financially viable.

Some provisions of the TCJA, including research and development incentives, were not permanent. It had expired in January. This has put many Montana business owners at a tax disadvantage at the same time that the Biden administration’s inflationary policies have created a difficult economic climate.

TRAFWA solves this situation. This bipartisan tax agreement, built on the framework of the TCJA, extends Trump-era tax provisions that prioritize high-wage jobs in Montana, including immediate research and development tax investments and reinstatement of the Child Tax Credit (CTC). All of them have proven capabilities. Supporting Montana businesses and families.

Through targeted tax reform, such as that seen within the TRAFWA framework, Montana will become more financially friendly to important growth-promoting activities such as research and development and infrastructure, making it once again a magnet for investment in manufacturing. It will become an increasingly attractive place.

Montana, which experienced record business growth last year, cannot afford to watch the Senate continue to move unceremoniously over the passage of TRAFWA. These tax provisions are critical to the growth of Montana’s manufacturing industry. Call the Senators (Tester: 202-224-2644 and Daines: 202-224-2651). Push to pass the American Families and Workers Tax Relief Act of 2024.

Meanwhile, people in Montana are living with uncertainty and counting the days until President Trump once again unleashes American energy development and launches a booming manufacturing industry. He found a 90% correlation between electricity usage and economic growth in the United States. Affordable electricity fosters economic growth far more than any tax cuts. More energy means lower inflation and more jobs. Cheaper electricity means that products cost less to produce, resulting in cost savings for producers and more affordable products for consumers.

Higher electricity prices in Montana would drive companies out of state or overseas to cheaper countries like China, taking away high-wage jobs and hundreds of billions of dollars from Montana. It is time for the Senate to take action on TRAFWA in the interests of Montanans. If we don’t, then Montanans need to realize that it’s finally time to make a big fuss by voting to “Make America Great Again” on November 5th.

On his first day, President Trump will rescind all of the Biden administration’s orders that have brutalized American industry. That is the true meaning of “The best is yet to come!”