On March 30, the National Association of Manufacturers sent a letter urging the U.S. Secretary of the Treasury to reassess compliance and regulations impacting the R&D Tax Credit. The National Glass Association signed onto this letter, along with other manufacturing and construction industry associations.
In the letter, NAM urges the Department of the Treasury to reform the compliance processes, audit procedures and regulations that undermine the value and impact of the Sec. 41 Research Tax Credit. NAM states that although the R&D credit is a vital tool for encouraging additional research investment and driving innovation, various aspects of the credit, including compliance burdens and the disqualification of certain research expenditures that are vital for manufacturing, undermine its value as a research incentive.
To improve these processes, manufacturers recommend reassessing compliance and audit procedures to better balance taxpayer compliance burden and IRS risk assessment capabilities, and evaluating regulations that prevent the qualification of manufacturing shop floor research and innovation.