Federal Tax

Tax Incentives for Domestic Manufacturers

A new report, presented at a U.S. Senate Committee on Financing hearing, describes present-law and prior-law tax incentives for domestic manufacturers. The report (JCX-15-21) details current rules relating to depreciation, including certain first-year expensing provisions, together with associated recapture provisions. The report also covers domestic research incentives and the credit for certain advanced energy projects. And it provides an economic analysis of the tax incentives for domestic manufacturing, with an emphasis on the concepts of user cost of capital and effective marginal tax rates. Click here to read the report. Contact the Cg Team with questions. © 2021