October ’24 at a glance … taxes, tariffs & trade

Aluminum extrusion antidumping and countervailing duties finalized 

Late last month, the U.S. Department of Commerce (DOC) announced its final determinations in the antidumping investigations of aluminum extrusions from the People’s Republic of China (China), Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, the Republic of Korea (Korea), Taiwan, Thailand, the Republic of Türkiye (Türkiye), the United Arab Emirates (UAE), and the Socialist Republic of Vietnam (Vietnam). The agency also announced its final determinations in the countervailing duty investigations of aluminum extrusions from China, Indonesia, Mexico and Türkiye. Duties recommended range from less than 1% to more than 50% for antidumping and up to more than 300% for countervailing subsidiary rates. It is now up to the Internal Trade Commission (ITC) within DOC to make a final determination and issue orders that are expected by Nov. 19. 

USTR opens portal for temporary exemptions for manufacturing machinery 

The USTR portal is open for submitting temporary exclusion requests from Section 301 China import tariffs for certain machinery used in domestic manufacturing. A list of eligible subheadings is included in the Federal Register Notice. The deadline for submitting requests is March 15, 2025.  

Corporate Transparency act compliance deadline approaching 

The Corporate Transparency Act requires businesses with revenue under $5 million and 20 or fewer employees to report beneficial ownership by Jan. 1, 2025. Learn more in this webinar recorded by the NAFEM legal team at Barnes &Thornburg.  

Multiple tax reform provisions due to sunset 

NAFEM is closely watching and working with allied associations to address pending tax changes that would potentially impact manufacturers as elements of the 2017 Tax Cuts and Jobs Act sunset. Specifically: 

• Tax reform created a 20% deduction allowing small businesses whose incomes pass-through to owners to compete on a level playing field with their peers organized as corporations. The pass-through deduction will expire at the end of 2025. 

• The 21% corporate rate is not scheduled to expire; however, President Biden’s FY 2025 budget proposed a 28% corporate rate. According to the National Association of Manufacturers (NAM), this would subject manufacturers in the U.S. to one of the highest tax rates in the developed world. 

• Tax reform allowed manufacturers to immediately expense 100% of the cost of capital equipment purchases. Full expensing enabled manufacturers to purchase new equipment and expand their shop floors, leading to increased productivity and job creation. The accelerated depreciation schedule began phasing out in 2023 and will expire completely in 2027.  

• Tax reform allowed manufacturers to deduct interest on business loans, up to 30% of a business’s earnings before interest, tax, depreciation and amortization (EBITDA). This standard expired in 2022, and the cap is now 30% of a business’s earnings before interest and tax (EBIT). 

• Tax reform international provisions were designed to make it easier and more cost-effective for manufacturers to locate their headquarters, assets and intellectual property in the United States. Tax increases on globally engaged manufacturers are scheduled to take effect at the end of 2025 that will make the U.S. a less competitive place to invest. 

These topics and others are addressed on NAM’s website, along with a link to share your recorded testimonial on tax-related topics with elected officials.