Aerospace Industries Association (AIA) President and CEO Eric Fanning has reached out to congressional leaders, urging them to address several key legislative priorities before the end of the year. In a letter sent last week, Fanning highlighted the importance of passing the National Defense Authorization Act (NDAA), reversing a research and development (R&D) tax law, and approving 12 appropriations bills necessary for government functions critical to national defense and aerospace.
Fanning stated, "As Congress begins its end-of-year legislative push, we look forward to working with you to advance priority legislation important to our industry, our workers and their families, and the U.S. economy." He emphasized that this includes fiscal year 2025 government funding, the FY25 NDAA, and legislation to restore immediate deductibility of R&D expenses for federal tax purposes.
The NDAA is particularly significant as it provides guidance essential for American servicemembers, the Department of Defense, and the defense industrial base. "This critical bill has been passed by Congress for each of the past 63 years," Fanning noted. He urged Congress to pass a conference agreement by year's end.
Fanning also addressed concerns about recent changes in tax laws affecting R&D expenses. These changes have discouraged same-year deductions since 2022. "We feel strongly that restoring the same-year deductibility of R&D expenses is a commonsense policy to support American innovation," he said. This issue is crucial for small businesses which may face financial challenges when choosing between salaries or investing in R&D.
He further stressed that delays in finalizing appropriations bills could negatively impact industries like aerospace and defense that rely on consistent government funding. "Our warfighters and aerospace innovators are hindered by stop-and-start government funding their vital activities for a few weeks at a time," he explained.
Fanning concluded by reaffirming AIA's commitment as a partner in these efforts with Congress: "Please let me know how we can support you with this agenda as you finalize legislation for the 118th Congress and prepare for the 119th."
