Lubbock Times

House Budget Chairman Jodey Arrington has introduced the Accelerate Long-Term Investment Growth Now (ALIGN) Act, aiming to make permanent a key element of the Tax Cuts and Jobs Act: full and immediate expensing. This policy allows businesses to deduct the cost of new investments, equipment, and machinery fully and immediately.

Chairman Arrington emphasized the importance of this measure, stating, "There’s no bigger incentive in the tax code for job creation and economic expansion than allowing businesses, both large and small, to fully and immediately deduct the cost of new investments, equipment, and machinery." He noted that full expensing was crucial to the economic growth experienced before the pandemic. The ALIGN Act seeks to lower capital costs and simplify tax codes as businesses invest in production enhancements.

Chris Netram from the National Association of Manufacturers expressed strong support for the ALIGN Act. He stated that it would permanently reinstate full expensing, which is essential for manufacturing growth. "Manufacturers strongly support the ALIGN Act," he said, urging Congress to act quickly to preserve these provisions.

Whit Askew from the Economic Investment Alliance also praised the introduction of this legislation. "Full expensing is a commonsense, pro-growth tax policy that encourages businesses of all sizes to grow and re-invest in their communities," he said. The bill is seen as a step towards ensuring American competitiveness by promoting job growth and improving supply chains.

The ALIGN Act has garnered support from several Members of Congress who have joined as cosponsors. These include Ron Estes (KS-04), Darin LaHood (IL-16), Claudia Tenney (NY-24), Kevin Hern (OK-01), Vern Buchanan (FL-16), Beth Van Duyne (TX-24), Randy Feenstra (IA-04), Carol Miller (WV-01), Max Miller (OH-07), Russ Fulcher (ID-01), Mike Collins (GA-10), Nancy Mace (SC-01), Mike Carey (OH-15), David Kustoff (TN-08), Lloyd Smucker (PA-11).

The background information highlights that full expensing allows businesses to deduct investment costs in the year they are made. However, this provision began phasing down from 100% in 2023 and will be completely phased out by 2027 unless action is taken.