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One year following the enactment of federal tax legislation known as H.R. 1, also referred to as the Working Families Tax Cuts Act, manufacturing companies across the United States are reporting increased capital investments, facility expansions, and workforce growth attributed to the law’s key provisions.
According to data compiled by the National Association of Manufacturers (NAM), the legislation preserved and finalized ten major tax provisions advocated by the sector.
The policy shifts include the permanent implementation of full equipment expensing, immediate research and development (R&D) expensing, expanded interest deductibility based on EBITDA, a permanent 20% pass-through deduction (Section 199A), and the retention of the 21% corporate tax rate.
The bill also introduced a federal tax exemption on overtime premium pay.
Businesses across multiple states have detailed specific operational changes resulting from the updated tax framework:
Alabama: Aluminum producer Novelis, Inc. utilized full equipment expensing and interest deductibility provisions to support construction of a $5 billion, fully integrated aluminum mill in Bay Minette. The facility, the first of its kind built in the U.S. in 40 years, is projected to employ approximately 1,000 workers when fully operational.
California: Robinson Helicopter in Torrance reports that immediate R&D expensing accelerated the development of its new R88 helicopters, designed to function as control centers for fire surveillance drones.
Connecticut: Plastic injection mold manufacturer Westminster Tool in Plainfield resumed novel product development and machinery purchases after the restoration of immediate R&D expensing, reversing previous scaling back forced by five-year amortization rules.
Delaware: 3D printer manufacturer Printed Solid, a Prusa Company, expanded its Wilmington facility from 10,000 to 100,000 square feet, leveraging capital equipment expensing to increase domestic assembly capacity.
Florida: Healthcare company Johnson & Johnson committed more than $1 billion to expand its Vision manufacturing, packaging, and distribution operations in Jacksonville, including a new distribution facility scheduled to open in 2028.
Georgia: Winton Machine Company in Suwanee reported increased demand for its tube and coaxial cable fabrication machinery, attributing the surge to restored equipment write-offs and interest deductibility for its buyers, alongside its own internal factory expansions.
Illinois: Industrial saw blade maker Simmons Knife & Saw in Glendale Heights used full equipment expensing to double the capacity of its butcher blade production line.
Indiana: Madsen Steel Wire Products in Orland acquired a top-of-the-line 3D CNC wire-forming machine to manufacture components, including cable access trays for artificial intelligence data centers.
Kansas & Nevada: The exemption of federal taxes on overtime pay impacted workplace labor dynamics. Kansas-based precision manufacturer Full Vision, Inc. and Nevada-based aerospace hardware maker Click Bond both reported increased employee willingness to work voluntary overtime shifts, aiding production schedules during labor shortages.
Maine: Liquid filtration product manufacturer The Strainrite Companies invested over $500,000 in equipment and facility upgrades at its Auburn plant in 2026.
Maryland: Medical device maker BTE Technologies in Hanover projected over 50% growth over five years following the restoration of immediate R&D write-offs for its core product lines.
North Carolina: Precision machining firm Ketchie Inc. in Concord added a dual 5-axis machining center, an EDM machine, and a cylindrical grinder, leading to a 25% expansion of its workforce and entry into aerospace supply chains.
New York: Defense supplier GSE Dynamics in Hauppauge executed a $1.5 million purchase of a 5-axis horizontal machining center to expand component production for the Pentagon and prime contractors.
Ohio: Tooling and workholding manufacturer Jergens, Inc. expanded a newly opened facility in Chicago, utilizing immediate expensing rules for factory structures that allow full write-offs in one year rather than amortizing over 39 years.
Pennsylvania: Polymer film manufacturer i2M in Mountain Top utilized restored R&D expensing to develop a decal film made with certified recycled content and brought previously offshore polymer production back to domestic facilities.
Virginia: Public safety technology provider Wrap Technologies opened a $4.1 million manufacturing headquarters in Norton designed to produce up to 23,000 restraint devices monthly, adding 126 local jobs.
Washington: Aluminum boat builder Munson Boats restarted a previously stalled factory expansion in Burlington, adding 6,000 square feet of production space and increasing its workforce by 23%.
West Virginia: Form Energy leveraged the preserved Advanced Manufacturing Production Tax Credit (45X) to scale operations at its Form Factory 1 facility in Weirton, producing 100-hour iron-air battery systems for the electrical grid.
Industry trade groups and regional state chambers, including the Associated Industries of Arkansas, the New Mexico Business Coalition, and Associated Industries of Vermont, noted that permanent tax certainty, pass-through relief, and estate tax exemptions have allowed family-owned and regional manufacturers to maintain long-term capital plans without midstream policy changes.
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H.R. 1 Tax Reforms Drive Capital Investments, Workplace Expansions For U.S. Manufacturers
