Manufacturers Hope R&D Tax Break Is Revived in Next Relief Bill

U.S. manufacturers are pushing lawmakers to reverse a provision in the 2017 tax law that will force companies to write down research and development expenditures starting in 2022.

Businesses and experts are concerned that if the policy isn’t reversed soon, U.S. competitiveness in manufacturing will be further diminished, as tax incentives to keep factories stateside weaken. The fears are heightened now, as the coronavirus pandemic continues to pummel the U.S. economy.

As Congress prepares to begin negotiating another industry-focused aid package, lobbying groups and companies see now as their chance to get the tax law changed reversed.

“There’s a host ...