Taxation

The American Foundry Society (AFS) is the leading advocate for public policies conducive to a strong metalcasting economy. AFS advocates for comprehensive tax reform that encourages manufacturing activity in the U.S., lowers tax rates both for corporations and pass-through businesses, and restores simplicity and predictability to the tax code. The majority of U.S. metalcasters are small- or medium-sized businesses, often family-owned, and organized as pass-through entities such as Subchapter S Corporations, so taxes are paid by their owners at individual rates.

Key tax priorities AFS is working to advance the metalcasting industry:

  • Lower tax rates
  • Full expensing for capital equipment
  • Accelerated depreciation
  • Permanent estate tax repeal
  • Preserve LIFO (last in, first out) accounting method
  • Retain a permanent, strong research and development (R&D) incentive

Metalcasting is a capital-intensive industry competing against international companies. U.S. metalcasters struggle with an outdated tax system with high rates that diminish a company’s cash flow. This reduction reduces the amount of money available to expand, purchase new equipment, hire more workers, bid on future projects, and reduce debt.

To join the effort to convince Washington to adopt these key tax policies as a Corporate Member of AFS, contact the Membership Services Department at 800-537-4237. Working together, we will make a difference.