U.S. Rep. Rudy Yakym (IN-02) has strengthened TRSA’s standing by sending a letter to the U.S. Department of the Treasury and the Internal Revenue Service urging federal officials to clarify that industrial laundry facilities qualify as engaged in a “qualified production activity” under Internal Revenue Code Section 168(n).
In the June 22 letter to Assistant Secretary for Tax Policy Kenneth Kies, Yakym argued that industrial laundries meet the substantial-transformation standard outlined in federal guidance because they convert contaminated and unusable textiles into hygienically clean, safe and marketable products through highly engineered industrial processes. He emphasized that these operations use specialized equipment, engineered wash chemistry, validated temperature controls, drying, finishing and quality assurance systems that fundamentally change the condition, function and marketability of reusable textiles.
Yakym requested that Treasury and the IRS formally recognize industrial laundering and hygienic processing of reusable textiles as an example of substantial transformation. He also asked regulators to confirm that reusable textile products placed back into service through rental and leasing arrangements should remain eligible under the law.
The request aligns closely with TRSA’s advocacy efforts regarding Qualified Production Activities. TRSA has emphasized that the industry is a critical component of the U.S. supply chain, processing millions of pounds of textiles each day for healthcare, hospitality, manufacturing, food processing and public safety customers. The association has argued that commercial laundries perform a production-like function by transforming soiled textiles into hygienically clean products ready for reuse.
Yakym has been a strong supporter of the industry and its workforce. In recognition of his leadership and engagement on issues important to linen, uniform and facility services operators, TRSA named Yakym its Legislator of the Year. The award reflects his efforts to understand and advocate for policies that strengthen domestic manufacturing, supply-chain resilience and job creation.
Earlier in 2026, Yakym further demonstrated his commitment to the industry by visiting Wildman Business Group in Indiana. During the facility tour, he met with industry leaders and employees to gain firsthand insight into the sophisticated operations that make reusable textile programs possible. The visit highlighted the advanced technology, workforce expertise and sustainability benefits that define modern industrial laundry facilities.
TRSA has consistently maintained that recognizing industrial laundries as qualified production activities would encourage additional investment in domestic facilities, equipment and workforce development. Such recognition would help support an industry that provides essential products and services to healthcare facilities, first responders, food processors, manufacturers and countless other businesses across the country.
Yakym’s letter represents an important step in advancing that objective. By urging Treasury and the IRS to provide clear guidance, he is helping ensure policymakers fully understand the vital role industrial laundries play in transforming reusable textiles into safe, functional products that support critical sectors of the U.S. economy.
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