From Slowdown to Shovel-ready: Recent Tax Bill a Catalyst for U.S. Industrial Growth

By Peter Kroner | August 19, 2025

The recent passage of the One Big Beautiful Bill Act of 2025 (“Big Beautiful Bill”) introduced new provisions allowing 100% rapid depreciation not only of equipment, but also of production and manufacturing facilities. This is a notable expansion beyond the 2017 Tax Cuts and Jobs Act (TCJA), which limited this benefit to equipment alone. By broadening the scope of eligible assets, the legislation aims to catalyze domestic production, reshape supply chain dynamics, and significantly reduce effective corporate tax rates. As a result, it is expected to spark a wave of industrial development across the country.

Key provisions in the bill

100% rapid depreciation
Reinstatement and expansion of 100% bonus depreciation is extended to include not just equipment, but also production and manufacturing facilities. Businesses can immediately write off 100% of the cost of qualifying investments (e.g., real estate, machinery, automation systems) in the year the asset is placed in service.

Eligibility
Applies to both new and used “qualified production property,” including manufacturing, agricultural, chemical and refining.