Tennessee’s manufacturing sector is the backbone of our state’s economy, fueling billions in economic impact and strengthening America’s supply chain. With nearly 3,000 advanced manufacturers operating statewide and employing over 153,000 Tennesseans, this industry is a powerhouse of innovation and job creation.
In fact, Tennessee manufacturers contribute more than $34 billion in annual exports, reinforcing our state’s position as a national leader in production and trade.
Maintaining this momentum requires smart government policies – at both the state and federal levels – that promote growth, encourage investment, and enhance supply chain resilience. Competitive tax policies, strategic initiatives and balanced regulations are essential for ensuring Tennessee manufacturers can expand, hire more workers and continue driving economic success.
As Congress weighs critical policy decisions, lawmakers must act to protect the policies that sustain our manufacturing growth.
A top priority is extending and making permanent key provisions of the 2017 Tax Cuts and Jobs Act (TCJA). If Congress fails to act, manufacturers – especially small businesses and those dependent on research and development (R&D) and capital investments – will face higher tax burdens that stifle growth and innovation. To prevent this setback, Congress must restore R&D expensing under Section 174, reinstate 100% bonus depreciation, eliminate the five-year amortization requirement, and maintain the pro-growth calculation for interest deductions under Section 163(j). These provisions have driven American innovation, improved productivity and kept U.S. manufacturers competitive on a global scale.
Making them permanent will provide businesses with the long-term stability needed to plan investments, create jobs and expand operations.
Congress must also preserve critical pro-business tax credits that directly impact Tennessee’s growing manufacturing sector. Battery production is a rapidly expanding industry in the state, and Section 45X of the Internal Revenue Code plays a vital role in strengthening domestic battery manufacturing, advancing technology and securing the U.S. supply chain.
Additionally, maintaining the Section 45Y clean electricity production tax credit and the Section 48E clean electricity investment tax credit is essential to unlocking billions in potential investment for next-generation energy development, including small modular nuclear reactions.
These policies will not only fuel Tennessee’s energy future but also create new opportunities for manufacturers across the state.
The stakes are high.
Tennessee’s manufacturing industry is a cornerstone of our economy, and the right policies will ensure its continued success. Lawmakers must recognize that supporting manufacturing means supporting Tennessee workers, families and communities.
By enacting policies that encourage investment, innovation and job creation, Congress can help Tennessee manufacturers remain a driving force for economic prosperity – today and for generations to come.
Josh Brown is the president and CEO of the Tennessee Chamber of Commerce and Industry and Tennessee Manufacturers Association.