Mineral Depletion, Net Interest Payment Expense Deductions Key to Jobs, Manufacturing

Washington, D.C., Nov. 14, 2017 – The Portland Cement Association (PCA) today urged Congress to consider changes to the tax code that support the production of cement needed for a national infrastructure revival and continued economic recovery.  As members of both the U.S. House and Senate contemplate changes to the tax code, PCA outlined areas of importance for companies that produce cement used in everything from highways to hospitals, supporting 500,000 jobs and contributing $100 billion annually to the U.S. economy.

Specifically, PCA is urging Congress to do the following with any tax reform legislation:

• Maintain the Mineral Depletion Deduction – manufacturers are allowed to deduct a percentage of the depreciation of equipment used in extracting minerals, such as limestone used in the production of cement.
• Create a Robust Capital Cost-Recovery System – producing cement is a capital intensive business. By lowering the cost-of-capital, cement plants can sustain private investments in maintaining and improving equipment and implementing new technology needed to boost energy efficiency and reduce environmental impacts.
• Preserve Deductions on Business Loan Payments – doing so provides capital-intensive cement producers more flexibility in how to finance their own growth, so taxpayers don’t have to. 

“America’s cement manufacturers play a critical role in our economy, as the producers of the core ingredient used to make infrastructure and buildings strong, durable and resistant to natural disasters,” said PCA Executive Vice President Todd Johnston. “We urge Congress to consider the impacts certain changes in the tax code can have – good and bad – to cement and concrete related companies that support hundreds of thousands of jobs and provide the literal foundation for American homes and highways.”

In addition to cement-industry specific provisions of the tax code, PCA also supports the following general corporate tax policies under consideration:

• Bring U.S. corporate income taxes into alignment with globally competitive rates.
• Ensure that any revenue from repatriation goes towards infrastructure investment.
• Preserve municipal bonds and private activity bonds.
• Address the shortfall in the Highway Trust Fund.

#   #  #

For more information: Holly Arthur, harthur@cement.org or 202-719-1979.