House Republicans are taking the first steps toward restoring tax provisions important to manufacturers, according to The Wall Street Journal (subscription).

What’s happening: Legislators are working to get a bill through the House Ways and Means Committee, potentially as soon as this month, though it’s unlikely to ever reach President Biden’s desk. Instead, this effort might ultimately lead to bipartisan negotiations later this year.

What’s in it: The bill hasn’t been released yet, but we do know something about tax writers’ intentions.

  • The package would “reverse three business-tax increases that took effect over the past few years, aides said. Those changes limited the deductions companies could claim for interest, research costs and capital expenses.”

Democrats may be willing to negotiate, especially about reinstating immediate expensing for R&D, undoing a 2022 tax change that has forced companies to deduct R&D costs over a period of years and made innovation more costly