KPMG article: Limited benefit from potential new domestic manufacturing incentives
Many domestic manufacturers would be excluded from the proposed benefits.
The House Ways and Means Committee Chairman’s mark of the tax provisions for the budget reconciliation legislation included a proposal allowing full expensing of “qualified production property” and a proposed increase in the gross receipts threshold under section 448(c) for small manufacturing businesses.
Congress should consider that many domestic manufacturers would be excluded from these proposed benefits and should consider reviving in some form the more inclusive prior domestic manufacturing incentives to implement the promised rate reduction for U.S. manufacturers.
Read a KPMG article* prepared by KPMG LLP tax professionals that examines the domestic manufacturing incentives included in the proposed budget reconciliation legislation and explains what’s missing.
*This article appears in Tax Notes Federal (May 19, 2025) and is provided with permission.