Biden’s Manufacturing Focus Offers Hope for Expiring Tax Perk

President-Elect Joe Biden’s interest in boosting domestic manufacturing is a good sign for companies that want to see a temporary tax policy known as full expensing extended or made permanent.

Businesses have long been allowed to deduct investment costs, but the 2017 tax law temporarily allows the immediate write-off of costs associated with the purchase of capital goods, including manufacturing equipment. The provision is set to start phasing out after 2022 and expire at the end of 2026.

That kind of capital investment is at the heart of the manufacturing industry, where companies regularly purchase various new equipment ...