The National Retail Federation (NRF) has voiced strong support for a new tax proposal introduced by House Ways and Means Committee Chairman Jason Smith (R-Mo.), calling it a significant step for the retail sector and broader U.S. economy.
The proposed legislation, which is scheduled for a committee vote, includes provisions aimed at maintaining a stable business tax framework, with a particular focus on extending key elements of the Tax Cuts and Jobs Act.
Retailers welcome tax provisions to boost investment and job growth
Central to the bill are measures that would extend full expensing for capital investments, allow immediate expensing for research and development, and maintain enhanced interest deductibility.
These provisions have been identified by the NRF as critical tools for stimulating business investment and driving job creation in the retail industry.
The NRF argues that these tax incentives offer businesses greater certainty when making long-term financial decisions, which can lead to increased hiring, operational upgrades and innovation.
By reducing the cost of capital, the package is seen as a means to support continued growth across retail supply chains and consumer services.
Business salt deduction unchanged in revised proposal
One notable feature of the legislation is the absence of changes to the state and local tax (SALT) deduction for businesses.
The NRF highlighted this as a key victory, emphasising that limiting the SALT deduction could have undermined the competitiveness of U.S. retailers, particularly those operating in high-tax states.
By maintaining the current deduction structure, the bill avoids imposing additional tax burdens on companies and preserves what the NRF describes as a necessary tool for supporting economic resilience.
The retail sector has long advocated for a consistent and transparent tax code that allows firms to plan and expand with confidence.
NRF continues advocacy on retail tax priorities in Washington
The announcement follows a recent NRF initiative that brought over a dozen retail tax executives to Washington, D.C., to engage directly with lawmakers and administration officials.
The industry group has been lobbying for the continuation of business-friendly provisions first introduced in 2017 under the Tax Cuts and Jobs Act.
The NRF’s support for the current proposal reflects its broader agenda of encouraging policies that foster economic growth and innovation.
As discussions progress in the House, the retail sector is expected to remain an active participant in shaping tax policy that aligns with its long-term goals.