According to the National Association of Manufacturers, 2018 was the best year for manufacturing job creation in 21 years and the best year for wage growth in 15 years, in part because manufacturers could use a 100% depreciation bonus at that time. It has phased down incrementally ever since, and will be phased out completely at the end of 2026 unless Congress acts.

"The best defense against a looming tax hike is a good offense," Daines said. "Senate Finance Republicans have begun organizing to examine the [Tax Cuts and Jobs Act of 2017] policies expiring next year, and the pass-through deduction is at the top of that list. We can’t allow these provisions to expire and let America’s working families, manufacturers and small businesses face a $6 trillion tax hike. That will make manufacturers less competitive against foreign competition by stifling investment and crushing their bottom line at a time when they should be looking for ways to increase wages and invest in innovation."

The 2017 law stimulated machinery sales, but many still missed the ideal window to buy.

"I'm standing on our shop floor, and I know exactly where the next capital investment should be installed. And I've been delaying this decision, I've been delaying this investment because of the change in the tax policy. Bonus depreciation dropped to 60%, and the fact that I can't expense the full value of this investment in the year in which I purchase it completely changes the return on investment calculation," said Courtney Silver, president and owner of Ketchie, Inc. "And this affects our ability to thrive, to grow, and to be competitive, and to most importantly attract and retain the next generation of workers who want to work on the latest and greatest machining technology."

Silver lobbied in favor of the Tax Relief for American Families and Workers Act, passed by the House of Representatives in January. The $78 billion bill has stalled in the Senate amidst the runup to the 2024 elections. Per senate.gov, if passed, the law would extend the 100-percent bonus depreciation for qualified property placed in service after December 31, 2022, and before January 1, 2026 (January 1, 2027, for longer production period property and certain aircraft).

"We need our representatives in Congress to do their part by stopping these tax hikes so we can continue to invest in our community and the future of our business," said Lee Daugherty, head of engineering at Madsen Steel.

According to the Tax Foundation, making the 100% depreciation bonus permanent wouldn’t change the tax liabilities as a portion of income from 2023 to 2032 for the manufacturing sector as a whole that much, averaging a 2% improvement; utilities and agriculture on the other hand are huge beneficiaries. 

Chairman of Sukup Manufacturing Company, Charles Sukup, noted his company makes grain drying, storage, and handling equipment. 

"For years, the United States was one of the highest tax rates for manufacturers in the world. And they really went to work in the previous administration, cooperating to get a more competitive tax rate," Sukup concluded, lamenting: "We have lots of lawyers in Congress and, unfortunately, very few manufacturers. But all Congress people want to hear how they can help manufacturing, and everyone generally speaks good things. But walking the talk is a bigger challenge."