Tax
For years, manufacturers made a simple promise: a competitive tax code would let them invest, hire and grow here at home. With the One Big Beautiful Bill Act, signed into law on July 4, 2025, Congress made the 2017 tax reforms permanent and added powerful new incentives to build in America — and manufacturers are delivering.
Promises made, promises kept
Manufacturers said a pro-growth tax code would pay off. It is.
For years, manufacturers made a simple promise: a competitive tax code would let them invest, hire and grow here at home. With the One Big Beautiful Bill Act, signed into law on July 4, 2025, Congress made the 2017 tax reforms permanent and added powerful new incentives to build in America — and manufacturers are delivering.
A pro-growth tax code helps power the manufacturing economy:
That's the manufacturing economy a permanent, pro-growth tax code helps sustain — and manufacturers are delivering on the promise.
Figures: NAM / EY economic impact study and the NAM report “Keeping Our Promises: Manufacturers on Eight Years of Tax Reform.”
What manufacturers won
The reforms manufacturers championed — now permanent
These are the pillars of a competitive tax code, now permanent law. Each one gives manufacturers the confidence to invest, hire and grow.
The Tax Trifecta
Immediate R&D expensing, 100% full expensing for equipment, and an EBITDA-based interest deductibility standard — the three policies that most directly drive manufacturing investment.
Now permanentSmall Business Relief
A permanent 20% pass-through deduction, permanent relief from the death tax, and permanent individual rates that family-owned manufacturers rely on to reinvest and pass the business on.
Now permanentBuilding in America
A new 100% deduction for new and expanded factories and an expanded Section 179 — rewarding the manufacturers who build, modernize and produce on U.S. soil.
New in H.R. 1Innovation Incentives
Restored research expensing keeps the U.S. competitive in innovation, while an expanded Advanced Manufacturing Investment Credit powers the next generation of domestic production.
Now permanentGlobal Competitiveness
A permanent 21% corporate rate and a stable international system (FDII, GILTI, BEAT) that keeps America an attractive place to headquarter, invest and create jobs.
Now permanentA Level Global Playing Field
An OECD “side-by-side” agreement keeps discriminatory foreign taxes off U.S. companies — and kept the punitive §899 retaliatory tax out of the law entirely.
SecuredProof it works
Tax reform is already delivering for manufacturers
When manufacturers can expense R&D, write off new equipment and plan around a permanent code, they invest, hire and grow — and the track record proves it.
“This is a manufacturers' bill — through and through.” — Jay Timmons, NAM President & CEO
Sources: Job-creation and wage-growth figures — NAM, Keeping Our Promises: Manufacturers on Eight Years of Tax Reform (2025); BLS data, 2018–2019. Manufacturer-support figure (85.4%) — NAM 2025 Second Quarter Manufacturers’ Outlook Survey (fielded May 8–27, 2025).
Why permanence matters
Certainty is what builds factories
Manufacturing runs on long horizons — a new line or facility is planned years out. Temporary tax provisions force manufacturers to guess; permanent ones let them commit. By making these reforms permanent, H.R. 1 gave manufacturers the predictability they need to invest, hire and grow with confidence.
- Plan multi-year capital projects without a tax cliff
- Invest in R&D and equipment in the year it's incurred
- Hire and raise wages on a stable footing
- Compete globally from a predictable home base
Promises in action
Turning a pro-growth tax code into results
A law only delivers if it's implemented right. The NAM is pressing the Treasury Department and the IRS at every step — filing detailed comments and holding regulators to the intent of the law — so manufacturers get the full benefit of the new tax code.
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August 2025
Treasury issues R&D expensing guidance (Rev. Proc. 2025-28), clarifying how manufacturers claim immediate deductions.
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January 2026
The OECD finalizes the Pillar Two “side-by-side” agreement — a level global playing field for U.S. manufacturers.
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February 2026
Treasury’s factories-deduction guidance adopts every recommendation from the NAM’s comment letter.
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February 2026
A CAMT fix ensures the corporate minimum tax doesn’t penalize manufacturers’ R&D investment.
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Ongoing
The NAM continues to weigh in on every round of guidance — pushing for rules that maximize the law’s benefit for manufacturers.
Hear it from manufacturers
Watch: Faces of Tax Reform
Manufacturers across the country explain what a permanent, pro-growth tax code means for their teams, their investments and their communities.
Manufacturers before Congress
Watch: Congressional Testimony
Manufacturing leaders took the case for a pro-growth tax code straight to Capitol Hill. Watch their testimony before Congress.
Lawmakers on the record
Congressional Champions of Tax Reform
Lawmakers from both parties championed the pro-growth tax policies manufacturers rely on. Click a profile to read the full NAM interview.
Sen. Steve Daines (R-MT)Read the interview
Sen. Maggie Hassan (D-NH)Read the interview
Sen. James Lankford (R-OK)Read the interview
Sen. Todd Young (R-IN)Read the interview
Rep. Adrian Smith (R-NE)Read the interview
Rep. Joe Morelle (D-NY)Read the interview
Rep. Glenn Grothman (R-WI)Read the interview
Rep. Ron Estes (R-KS)Read the interview
Rep. Marc Veasey (D-TX)Read the interview
Rep. Lori Chavez-DeRemer (R-OR)Read the interview
Rep. Randy Feenstra (R-IA)Read the interview
Rep. Dusty Johnson (R-SD)Read the interview
Rep. Carol Miller (R-WV)Read the interview
Rep. Lloyd Smucker (R-PA)Read the interview
Rep. Tim Walberg (R-MI)Read the interview
This is what keeping our promises looks like
Manufacturers vowed that a pro-growth tax code would mean more investment, more jobs and higher wages — and across the country, they are delivering. Tell us how the new tax law is helping your business grow.
