MEMA, The Vehicle Suppliers Association Supports Senate Passage of the H.R. 1

WASHINGTON, D.C. – On July 1, 2025, the U.S. Senate passed its version of H.R. 1, the One Big Beautiful Bill Act. MEMA strongly supports this measure, which includes several key provisions that MEMA fought for such as the continuation of the 21% corporate tax rate, the addition of a permanent and immediate first year deduction of R&D expenses, and the reinstatement of 100% full expensing for capital equipment purchases. 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.  

"These measures in the tax bill are of great importance, especially to vehicle suppliers who represent the largest sector of manufacturing jobs in the country with more than 932,000 associates," Bill Long, president and CEO of MEMA, The Vehicle Suppliers Association, said in support of this action. "The 'One Big Beautiful Bill' renews central items from the 2017 Tax Cut and Jobs Act (TCJA) and provides critical certainty for suppliers on several business provisions by making them permanent. This measure enhances national tax policy, a cornerstone of U.S. manufacturing competitiveness. MEMA also wishes to highlight the treatment for businesses that organize as passthrough entities under Section 199A, where the Senate bill makes the current 20% deduction permanent. As the House of Representatives turns its attention to the bill, we will continue to advocate for the interests and priorities of the U.S. vehicle supplier industry." 

MEMA members are grateful for the removal of Section 899, an international tax provision designed to retaliate against OECD Pillar Two obligations. Together with a number of business groups and coalitions, MEMA had raised concerns over this section of the bill and had cautioned that it could have a negative impact on companies investing in and operating in the U.S. MEMA thanks the Department of the Treasury and Congressional leadership for their successful efforts to resolve this issue.    

Finally, MEMA supports the retention of critical advanced manufacturing programs which will enable companies to invest in and expand their domestic operations. It is vital that the final version of the reconciliation package maintains the Advanced Manufacturing Production Credit (Section 45X) so that it is workable for manufacturers utilizing these credits. MEMA also supports the Senate's continuation of the Clean Hydrogen Production Tax Credit (Section 45V).   

Based on the items highlighted above, MEMA believes that the Senate version of H.R. 1 will encourage even more new investment and job growth in U.S. manufacturing. We encourage the House to pass this legislation and send it to the President’s desk as soon as possible.

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.