Manufacturers Report on Tax Law’s Impact
A report was released Tuesday by groups representing U.S. manufacturing companies, marking the first anniversary of the 2025 tax law. This document outlines the law’s effects on manufacturing across all 50 states.
The One Big Beautiful Building Act (OBBBA), passed by Republicans in Congress last July and signed into law by President Donald Trump, includes provisions designed to revitalize the manufacturing sector. Noteworthy measures include 100% cost-sharing for new factories and immediate depreciation on new machinery.
The National Association of Manufacturers (NAM) conducted an analysis that estimates job protection and economic growth attributed to the OBBBA. Additionally, the report examines how manufacturers have utilized tax laws in different states.
“Tax policy is more than just figures on a spreadsheet. These stories from every state illustrate the tangible effects of pro-growth policies,” observed Jay Timmons, CEO of the National Association of Manufacturers, emphasizing how these policies encourage manufacturers to invest, hire, and expand.
Timmons also characterized the Tax Cuts and Jobs Act as “one of the most significant pieces of legislation in a generation.” He noted, “These permanent, pro-growth tax policies provide manufacturers the assurance they need to invest in talent and equipment.”
According to NAM’s findings, California has saved 708,000 jobs and garnered $134 billion in GDP and $67 billion in wages, leading the nation in these categories. In an innovative move, Robinson Helicopters plans to use immediate R&D funding for its new R88 helicopter, which will serve as a control center for fire surveillance drones.
Will Fulton, the company’s vice president of business development, remarked that such innovations involve considerable research and development expenses. He stressed that the immediate R&D deduction “accelerates our ability to innovate.”
As midterm elections loom, President Trump visited a Mack Truck factory in Pennsylvania to promote his economic agenda.
NAM’s report also highlights Texas, which employs 547,000 individuals and has a GDP of $107 billion. The state has saved approximately $51 billion in wages through the OBBBA. Companies like WilliamsRDM are considering further investment in engineering and design, thanks to the tax law’s R&D funding.
Florida has seen a savings of around 399,000 jobs and $36 billion in wages. Notably, Johnson & Johnson is planning to invest over $1 billion to expand its Jacksonville operations. “This decision underscores our commitment to innovation in the U.S.,” stated J&J’s chief technology officer, Kathy Wenger.
In terms of workforce development, Nick Pinchuk, CEO of Snap-on, expressed firsthand experience of the correlation between long-term tax stability and workforce confidence. He described the legislation as a commitment to America’s workers and emphasized the importance of manufacturing for the nation’s future.
According to House Ways and Means Committee Chairman Jason Smith, the essence of OBBBA was establishing a permanently pro-growth tax system. He argued that by preventing major tax increases, the legislation provides the stability necessary for manufacturers to invest in the future.
“The results after one year are evident: tax cuts for working families and manufacturers fortify our economy, boost industrial output, and open new opportunities for workers,” said Senate Finance Committee Chairman Mike Crapo, summarizing the law’s impact.
