MEMA, The Vehicle Suppliers Association Highlights Enactment of Critical Tax Policies for the Industry

WASHINGTON, D.C. – MEMA, The Vehicle Suppliers Association, welcomes the enactment of the pro-manufacturing tax policies included in  H.R. 1, the One Big Beautiful Bill Act. After passing the Senate and House last week, the bill was signed into law by President Trump on July 4. 

MEMA strongly supported several key provisions within the bill, which includes items that MEMA has long championed and actively advocated for during the process—most notably, the preservation of the 21% corporate tax rate, the establishment of a permanent, immediate first-year deduction for R&D expenses and the return of 100% full expensing for capital equipment purchases. These are major wins for innovation, investment and long-term economic growth for the vehicle supplier industry. Further, MEMA welcomed the addition of the new production expensing provision which seeks to support the creation or expansion of manufacturing facilities in the United States.  Finally, MEMA wishes to highlight the current 20% deduction for businesses that organize as passthrough entities under Section 199A which was made permanent in the bill. 

"H.R. 1 provides critical certainty for suppliers by making these essential tax provisions permanent and by addressing the long-held MEMA priority of restoring first year deductibility for research and development expenses. Suppliers are innovators and conduct much of the R&D work necessary to bring about new breakthroughs in vehicle technology and to create the next generation of products and systems” said Bill Long, President and CEO of MEMA, The Vehicle Suppliers Association.  
 
Further, MEMA supported the bill’s retention of vital advanced manufacturing programs that were under threat of being eliminated during this process, notably the Advanced Manufacturing Production Credit (Section 45X) and the Clean Hydrogen Production Tax Credit (Section 45V). It was essential to preserve these advanced energy investments, which create jobs, spur domestic investment and enhance our nation’s energy security. 

“This bill includes issues that were deemed essential for the vehicle supplier industry and the hundreds of companies operating in the OE, aftermarket, passenger car and commercial vehicle segments of this sector. MEMA will continue to engage and fight for its member companies’ interests and the law moves forward towards implementation” said Long.

About MEMA. The Vehicle Suppliers Association
MEMA, The Vehicle Suppliers Association, is the leading trade association in North America for vehicle suppliers, parts manufacturers, and remanufacturers. It has been the voice of the vehicle supplier industry since 1904. Its more than 1,000 members are Strong by Association.

Companies join MEMA via two membership groups: MEMA Aftermarket Suppliers and MEMA Original Equipment Suppliers. Automotive and commercial vehicle suppliers are the largest manufacturing sector in the United States and lead the way in new vehicle innovations.

Members conceive, design, and manufacture the OE systems and technologies that make up two-thirds of the value of every vehicle and supply the aftermarket with the parts that keep millions of vehicles on the road, fueling international commerce and meeting society’s transportation needs. MEMA members are committed to safety and sustainability.

MEMA has offices in Southfield, Mich.; Research Triangle Park, N.C.; and Washington, D.C. Learn more at MEMA.org.