How the 2025 Tax Law Transformed a Small Manufacturer

Thanks to last year’s landmark tax legislation—which secured a more competitive tax code for manufacturers and delivered on every pro-growth tax provision the NAM championed—flexible plastic films maker i2M has seen a year of incredible success, with much more to come.

What’s going on: H.R. 1 has “created an extraordinarily favorable environment for U.S. manufacturers,” Alex Grover, CEO of the Mountaintop, Pennsylvania-based manufacturer told the NAM in a recent interview.

• “Innovation is in the DNA of American industry—it’s who we are. i2M stands for ‘innovation 2 manufacturing,’ and we’re laser-focused on continuing that legacy and investing in the future of U.S. manufacturing.”

Immediate R&D expensing: One of the main ways in which the legislation has helped the 210-employee firm was its restoration of immediate R&D expensing.

• “The R&D side of things is where I really saw the greatest impact,” Grover said.
• It also answered some long-standing questions for the business, she continued, such as “How are we going to compete to win? How are we going to make sure we dominate in the market and are we launching the most innovative, best products that solve problems for our customers?”

Three in one: i2M’s experience demonstrates how the tax law enhances the manufacturing investment pipeline—from initial R&D through the purchase of new equipment for new product lines.

• Thanks largely to the three immediate expensing provisions of the law for research, equipment and manufacturing facilities, the company—which has the rare distinction of being both a manufacturer and a recycler of flexible PVC—was able to launch a new project with a large label and decal maker.
• The new product line will enable them to start offering new, flexible plastic products manufactured with 25% recycled content—which, as Grover says, is just “one example of groundbreaking products that have literally never existed before” in i2M’s lineup.

The Child Care Credit: Another boon to the firm courtesy of the tax law is the 45F employer-provided child care credit, Grover said.

• Tax credits like the Child Care Tax Credit, which provide an incentive to companies offering child-care support to their employees and were expanded in H.R. 1, give employers “flexibility to create … solutions that lower barriers to entry into manufacturing and lower barriers to the workforce getting to work,” she said.
• Grover added that her company has a “wonderful partnership with a third-party child care program,” allowing them to offer reduced rates and reserved slots to i2M workers, along with extended hours to accommodate parents’ early shifts.

An official visit: Acting Secretary of Labor Keith Sonderling toured i2m recently, praising its contributions to the “manufacturing resurgence” in the U.S. (Fox 56).

• Secretary Sonderling also lauded the company’s partnership with a local high school and community college. “What I saw here today was [that … ] Crestwood High School and LCCC [are] really working hand-in-hand with this company to make sure that they not only have the pipeline of workers, but the workers have the skills that are needed to work on this advanced machinery,” he said.
• “So, when they graduate, they’re ready to take these high-skilled, high-paying jobs locally. And that’s what’s so important in the Trump administration: we see manufacturing coming back. We want these jobs to go to local workers. We want people to stay within their community.”

The last word: “We’re bringing innovative products back to the U.S.,” said Grover. “The favorable incentives for U.S. manufacturing in H.R. 1 are the reason we can make those types of investments.”

Manufacturing wins: This story was an example of how several provisions helped a small manufacturer invest and grow, including one provision outside of the NAM’s core priorities. For a full list of all tax reforms the NAM advocated for and secured in the landmark tax law, visit NAM.org/tax.