Federal funds. Regulatory changes. Tax laws. Manufacturers need to know what’s happening in Washington. But of course, you barely have enough hours in your day to run your business, let alone watch the news and call your representatives.
That’s why NTMA exists: not only to help you run a successful manufacturing business but also to be your voice in Washington. From Congress to the White House, we keep you informed of legislative changes that could impact your manufacturing business and the industry as a whole.
Here are a few of the most critical issues in machining news that we’re tracking right now, along with insight on how you can help us advocate on your behalf.
1. R&D Tax Deductions and Credits
Effective January 1, 2022, the Trump Administration’s 2017 Tax Cuts and Jobs Act (TCJA) eliminated manufacturers’ immediate deductions for their research and development (R&D) activities, instead requiring amortizations over five to 15 years.
How manufacturers are affected
The TCJA stipulates that R&D-related expenses must be capitalized and amortized over five years (for domestic activities) or 15 years (for non-US activities). Instead of claiming 100% of your deductible R&D expenses for 2021, you will recover your deduction over the relevant five to 15-year period.
This amortization requirement will negatively impact many small businesses, as it will be more challenging for them to make R&D-related purchases or participate in R&D projects. Along with being bad for business, a decrease in R&D stands to negatively impact our country and its citizens.
The TCJA does provide businesses with a tax credit for R&D expenses. To calculate and claim the credit, you must file IRS Form 6765. Companies can expect a credit ranging from 6% to 20% of their qualified research expenses (QRE).
How NTMA is advocating for you
With impressive bipartisan support against the TCJA’s Section 174 amortization requirement, NTMA is lobbying for Congress to restore the full deductibility of R&D expenditures.
In a recent draft of the Build Back Better Act (BBBA), one effort seeks to defer the amortization requirement’s effective date from 2022 to 2026, which would merely push the problem down the road. BBBA is currently stalled in the Senate.
NTMA continues to fight the TCJA amortization requirement on your behalf!
2. Apprenticeships and Training Programs
On September 1, 2022, the Biden Administration launched the Apprenticeship Ambassador Initiative, a program that aims to expand Registered Apprenticeships and help develop a skilled workforce for high-demand industries, including manufacturing.
How manufacturers are affected
Apprenticeship Ambassadors have been tasked with growing Registered Apprenticeship programs in more than 40 industries via several initiatives, including program expansion, program training, and increased program accessibility.
As manufacturers already know, Registered Apprenticeships provide high-quality, debt-free, nationally accredited learning through on-the-job training and mentorships.
We expect the intelligent expansion of Registered Apprenticeship programs to help alleviate supply chain challenges, enable manufacturers to finally fill employment gaps, and employ manufacturing and technology workers in jobs created by the CHIPS and Science Act.
How NTMA is advocating for you
NTMA representatives were invited to attend talks at the White House, where they engaged in discussions surrounding the Apprenticeship Ambassador Initiative and Registered Apprenticeship programs as a whole.
We hope to see continued investment in Registered Apprenticeship programs for the manufacturing industry. Approximately 93% of completed Registered Apprenticeships result in employment, with an average starting salary of $77,000.
Research shows that employers who invest in Registered Apprenticeships enjoy a return of $1.47 on every dollar spent.
3. OSHA Temperature Standards
Effective as of April 8, 2022, the Department of Labor’s (DOL) Occupational Safety and Health Administration (OSHA) issued directive CPL 03-00-024, a National Emphasis Program (NEP) addressing outdoor and indoor heat-related hazards in the workplace.
How manufacturers are affected
This NEP adds an enforcement program focused on high-heat working conditions, both inside and outside. Enforcement is coordinated by OSHA with the DOL’s Wage and Hour Division (WHD) and impacts any work environment that exposes workers to high-heat-related hazards that could result in serious illness, injury, or death.
Is your business impacted?
Because OSHA’s guidelines are not laws, manufacturers in certain states may be exempt from cooperating with NEP inspections. Find information about your state’s adoption of this OSHA instruction here.
How hot is too hot?
OSHA advises employers to download the free Heat Safety Tool, a resource for finding your location’s potential and current heat index (HI). In the app, you’ll find hazard levels defined as:
- Caution: less than 80°F HI
- Warning: 80°F to 94°F HI
- Danger: 95°F HI or higher
How can you protect your team?
The solutions are simple, but you may be surprised by how many companies fail to ensure access to cold water, frequent rest breaks, cooled areas or shade, and prompt medical attention throughout the work day.
How NTMA is advocating for you
We take workplace safety seriously—and we know our machine shop management members do, too. No one wants to see an employee harmed on the job.
However, between 2015 and 2019, the DOL’s Bureau of Labor Statistics (BLS) documented an annual average of 35 fatalities and 2,700 injuries with days away from work—all due to heat. And they believe the actual numbers to be much higher. For example, a cause of death may be listed as a heart attack, even though the underlying cause was heat exposure.
For these reasons, NTMA encourages manufacturers to stay hyper-vigilant about potentially harmful heat conditions, to apply OSHA’s preventative measures at their own job sites, and to encourage team members to seek assistance if they feel ill at work.
Meanwhile, NTMA will continue to monitor safety-related guidelines and legislation on your behalf.
NTMA Is Your Voice in Washington
No matter who you voted for or who gets elected, you need someone in Washington who represents the interests of your business and the manufacturing industry at large. NTMA’s job is to help lawmakers understand how their proposed legislation impacts real business owners, real workers, and the economy.
Manufacturers are not bargaining chips to be traded for favors or funds.
We are committed to our role as your voice in Washington. To continue advocating for US manufacturers, we need your engagement, your feedback, and your membership.
When you join NTMA, you claim your seat on Capitol Hill.
At NTMA, our strength lies in our numbers. The bigger our community, the louder (and harder to ignore) our collective voice becomes.
Who can you encourage to join the NTMA community? Invite them today!
