Last week, U.S. Sen. Tim Scott (R-SC) signed on as an original cosponsor of legislation that would allow businesses to fully expense new investments, such as machinery, equipment, and technology, in the year of purchase.
The Accelerate Long-term Investment Growth Now (ALIGN) Act, S. 1117, was sponsored on March 30 by U.S. Sen. James Lankford (R-OK) to make permanent a provision in the 2017 Tax Cuts and Jobs Act. Under current law, the provision began to phase out in the federal tax code starting at the end of 2022 and expires at the end of 2026.
Senator Scott highlighted the importance of making that provision permanent. “This bill incentivizes business owners to create good-paying jobs, invest in local communities, and energize the American economy,” said Sen. 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.”
Sen. Lankford noted that business expenses are not business profits and, therefore, should not be taxed as profits. “Let’s get this passed and signed into law to help our vital U.S. manufacturing sector and other U.S. industries continue to create high-paying jobs.”
Sens. Scott and Lankford were joined in introducing the bill by nine other original cosponsors, including U.S. Sens. Marsha Blackburn (R-TN), Todd Young (R-IN), Steve Daines (R-MT), and John Thune (R-SD).
The bill, which is under consideration in the Senate Finance Committee, is supported by the National Association of Manufacturers, USTelecom, Americans for Prosperity, and Americans for Tax Reform, among others.