# Plain Language Summary: Repeal of Production and Investment Tax Credits

This bill would eliminate two major tax breaks that businesses currently use to reduce their tax bills. The production tax credit allows companies to deduct a portion of their costs when they manufacture certain products domestically, while the investment tax credit lets businesses deduct a percentage of money they spend on equipment and machinery. Together, these credits have been used by companies across many industries—from renewable energy manufacturers to semiconductor producers to traditional manufacturers—to lower their federal tax obligations.

If this bill passes, companies would lose these deductions, meaning they'd owe more in federal taxes on the same level of business activity. This could affect how much businesses are willing to invest in new equipment, factories, or production facilities, since the tax incentive to do so would disappear. Some industries that have relied heavily on these credits—particularly renewable energy companies, manufacturers, and tech firms—would likely see their tax bills increase significantly.

The practical effect would be felt by workers and consumers too. Companies facing higher tax bills might respond by raising prices, reducing hiring, or scaling back expansion plans. On the flip side, the federal government would collect more tax revenue from businesses, which could theoretically be used to reduce the national deficit or fund other programs. The bill essentially represents a choice about whether the government should use tax policy to encourage business investment and domestic manufacturing, or whether it should collect more revenue from companies regardless of their investment decisions.

To amend the Internal Revenue Code of 1986 to repeal the production tax credit and the investment tax credit.

Perry, Scott

 <p>This bill repeals the tax credit for the production of electricity from renewable resources and the energy tax credit.</p>