Working Families Tax Cuts Fuel American Manufacturing

Working Families Tax Cuts Fuel American Manufacturing

The Working Families Tax Cuts, driven in the U.S. Senate by Finance Committee Chairman Mike Crapo (R-Idaho), power American reindustrialization through key provisions like immediate research and development expensing, full expensing for new capital investments and full expensing for the construction of new factories. According to a report by the Tax Foundation, these changes are "increasing long-run investment and economic growth" and are giving the manufacturing industry more tax relief than any other industry.

"American companies can feel confident making major investments in new production facilities and other infrastructure now that we have instituted the permanent, pro-growth provisions of the Working Families Tax Cuts," said Crapo. "Manufacturers are already responding accordingly, fueling America's economic boom and creating good-paying jobs in their communities."

Key wins:

• Full expensing for new capital investments like machinery and equipment.
• More than doubles the Section 179 expensing threshold used by small businesses to make capital investments.
• Full expensing for new factories and factory improvements.
• Full expensing for domestic R&D.
• Makes permanent the expanded Opportunity Zone program and incentivizes investment in rural areas.

Since the bill became law, companies all over the country have expanded or announced construction of new factories:

• New pipe manufacturing facility in Idaho.
• New steel plant in Pennsylvania and expansion of existing one in Indiana.
• $2 billion manufacturing plant in North Carolina.
• $1.2 billion biologic medicines factory in Pennsylvania.
• $500 million investment in a California innovation center.
• $223 million rare earth magnet plant in Georgia.
• $457 million transformer production factory in Virginia.
• New Louisiana steel plant for U.S. auto production.
• $3 billion investment in home appliance plants in Kentucky, Alabama, Georgia, Tennessee, and South Carolina.
• $400 million chicken processing plant in Georgia.
• Doubled capacity at a California air taxi manufacturing plant.
• $75 million investment in a South Carolina engine plant.
• $4 billion new battery production factory in Kansas.

Click HERE to see how the Working Families Tax Cuts make investments in American industry.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.