H.R.1347 - American Investment in Manufacturing and Main Street Act; AIMM Act (119th Congress)
Summary
H.R.1347, the American Investment in Manufacturing and Main Street Act (AIMM Act), proposes to amend the Internal Revenue Code of 1986. The amendment would permanently extend the allowance for depreciation, amortization, or depletion when calculating the income limitation on the deduction for business interest. This bill was introduced in the House of Representatives on February 13, 2025, and referred to the Committee on Ways and Means.
Expected Effects
The primary effect of this bill would be to allow businesses to continue deducting depreciation, amortization, and depletion when calculating their business interest expense limitation. This could potentially reduce their tax burden. The permanent extension aims to provide long-term certainty for businesses in their tax planning.
Potential Benefits
- Encourages business investment by reducing the cost of capital.
- Simplifies tax calculations for businesses, reducing compliance costs.
- Potentially increases business profitability, leading to job creation.
- Provides long-term certainty for businesses, aiding in financial planning.
- May stimulate economic growth by incentivizing investment in manufacturing and other sectors.
Most Benefited Areas:
Potential Disadvantages
- Could increase the national debt by reducing government tax revenue.
- May disproportionately benefit larger businesses with more significant depreciation, amortization, or depletion expenses.
- Could lead to increased complexity in the tax code if not implemented carefully.
- Potential for unintended loopholes or tax avoidance strategies.
- The benefits may not be evenly distributed across all sectors of the economy.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill aims to promote the general welfare by stimulating economic activity through tax policy. The specific details of the tax code are generally left to the discretion of Congress, provided they do not violate other constitutional provisions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).