March 19 2021

Joint Committee on Taxation Describes Tax Incentives for Domestic Manufacturing

Source: Tax Research Platform News

The Joint Committee on Taxation (JCT) of the US Congress has released a report describing present-law and prior-law tax incentives for domestic manufacturing.

The JCT report is titled "Tax Incentives for Domestic Manufacturing." The report, designated JCX-15-21, is dated 12 March 2021.

The JCT report provides descriptions of:

  • present-law income tax rates;
  • rules relating to depreciation, including certain first-year expensing provisions, along with associated recapture provisions;
  • domestic research incentives and the tax credit for certain advanced energy projects that re-equip, expand or establish a manufacturing facility for certain energy-related property;
  • the prior-law deduction for income attributable to domestic production activities under the former section 199 of the US Internal Revenue Code (IRC), which was repealed as part of the Tax Cuts and Jobs Act (TCJA) for taxable years after 31 December 2017; and
  • economic analysis relating to tax incentives for domestic manufacturing.

Note: The JCT is a non-partisan committee of the US Congress that assists members of the majority and minority parties in both chambers on tax legislation. The Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee chair the JCT on a rotating basis.