NFFS Announces Support for the American Investment in Manufacturing and Small Business Growth Act

The NFFS Government Affairs Committee is pleased to announce its support for the American Investment in Manufacturing and Small Business Growth Act, recognizing its vital importance to capital-intensive industries such as non-ferrous foundries. This legislation would restore a key tax provision—allowing businesses to deduct interest expenses based on 30% of EBITDA rather than EBIT—directly benefiting foundries that invest heavily in equipment, tooling, and facility improvements. Additionally, the bill expands Section 179 expensing limits, enabling small and mid-sized foundries to immediately deduct more of their investments in machinery and equipment. NFFS’s support for this legislation underscores our commitment to reducing tax burdens on our members and industry while ensuring they have the financial flexibility needed to invest in their workforce, modernize operations, and strengthen their global competitiveness.

Legislation Summary:

The American Investment in Manufacturing and Small Business Growth Act contains two related pro-growth tax proposals that would support business owners who are working hard to invest in equipment—including machinery, manufacturing tools, farming equipment, office furniture, commercial vehicles, and more—and allow funds to go toward employee salaries, materials, and other critical business expenditures.

Business Interest Expense Deduction (Section 163(j)):
The first provision of the bill would address the additional limitation on business interest deductibility that went into effect in 2022. The bill would revise the limitation from 30% of a business’s Earnings Before Interest and Taxes (EBIT), back to 30% of Earnings Before Interest, Taxes, Depreciation, Amortization, and depletion (EBITDA)—protecting businesses from being punished for investments in machinery, equipment, research & development, mining, and drilling. This would apply beginning in 2025.

 Small Business Expensing (Section 179):
The second provision of the bill expands Section 179, which allows taxpayers to expense certain business assets in the year they are purchased. Under the 2017 Tax Cuts and Jobs Act, the expensing cap was lifted to $1 million from $500,000, which helped small businesses get the machinery and equipment they needed to expand their operations. The bill would build on this success by lifting the deduction cap to $2.5 million with an increased phaseout threshold of $4 million. This would apply beginning in 2025.