The One Big Beautiful Bill Powers Investment in the U.S.
The U.S. Department of the Treasury reports that it has already seen a surge in capital spending in the U.S. since the enactment of the One Big Beautiful Bill Act (OBBBA):
“Through the first two quarters of the year, production of business equipment has risen almost 17% at an annualized rate, which is the fastest non-pandemic pace since1997 as shown in the chart below.”
Background:
The OBBBA powered economic investment with provisions allowing businesses to permanently expense research and development costs, capital expensing and interest deductibility.
The legislation strengthened incentives for companies to build, invest and manufacture in America. Increasing capital investment will also boost jobs and wages.
What they are saying:
“Thanks to the policies in this legislation, we intend to invest more rapidly in next generation networks … In addition to investing a portion of these cash tax savings into our network, we intend to contribute $1.5 billion to our pension plan by the end of next year.” -- AT&T
“We saw a meaningful increase in our cash flow outlook. The change in R&D capitalization in The One Big Beautiful Bill will result in roughly $200 million federal cash tax benefit this fiscal year.” – Booz Allen Hamilton
“We are pleased that the One Big Beautiful Bill Act provides certainty for our previously announced $55 billion commitment to invest here in the United States. This includes provisions such as permanent expensing for domestic R&D spend, permanent bonus depreciation, and 100% expensing of qualified production property, including our newly planned facility in North Carolina.” – Johnson & Johnson
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