Tax Reform

Why We Engage in Public Policy

Public policy and regulations can impact our ability to compete, so we work closely with lawmakers and regulators and support pro-growth policies that help ensure our company remains competitive both at home and abroad. Our continued success and ability to increase shareholder value requires advocacy for a favorable legislative and policy environment. 

U.S. Tax Policy

Congress is advancing tax legislation to preserve, extend, or expand pro-growth tax provisions. Without Congressional action this year, many of these provisions will no longer apply, leaving U.S. manufacturers like Caterpillar, our customers, dealers, and suppliers – facing significant tax increases.

Current Tax Proposal that Supports Caterpillar, Our Dealers and Customers

Congress is currently debating several pro-growth tax provisions and whether they should be preserved, extended, or expanded.

• Preserving the corporate tax rate. The current bill maintains the 2017 TCJA tax rate at 21% providing a greater incentive for domestic investments and keeping U.S. companies globally competitive.
• Restoring research and development expensing. This provision would restore a decades-long rule to allow research costs to be deducted when they are incurred. This preserves cash for investment in our business.
• Restoring capital expenditure expensing. This provision would allow companies to deduct the cost of capital investments when they are incurred. Doing so is the most efficient policy to incentivize capital investments for Caterpillar, our dealers and customers. 

Additional Resources

We maintain memberships with U.S. trade and industry associations as their work helps create an environment where companies from all industries — not just our own — can be successful. Being a member of these organizations provides Caterpillar with many benefits, including engagement opportunities with customers and other key stakeholders, convening conferences and tradeshows and providing industry information. These associations can also provide analysis of proposed regulations and legislative action, as well as advocacy for their membership to promote sound public policy. Please click below to access additional resources on important policy issues.