Congress makes permanent tax break for manufacturers, costing billions in lost revenue
H.R. 2652 — Bring Entrepreneurial Advancements To Consumers Here In North America Act · Filed by Chip Roy (R-TX) · 1 cosponsor · Introduced Apr 3, 2025 · Referred to committee
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What it does
This bill creates two major tax breaks for manufacturers: (1) accelerated depreciation (20-year write-off) for real property used when relocating manufacturing from abroad to the U.S., plus tax-free gains on selling old foreign equipment, and (2) permanent 100% immediate expensing (full write-off in year one) for all qualified business property. The first targets companies moving production onshore; the second is a broad capital-investment subsidy available to any business.
Why we flagged it
The bill's operative mechanism is a permanent tax deduction and capital-gains exclusion for manufacturers. While framed as an incentive for onshoring, the permanent full expensing applies to all qualified property regardless of relocation, making it a broad corporate tax cut. The relocation provisions are the stated purpose, but the permanent expensing is the larger fiscal impact.
What the text implies
- Permanent 100% expensing applies to ALL qualified property, not just relocation-related assets—this is a broad capital-investment subsidy far exceeding the stated onshoring goal.
- The bill eliminates the scheduled phase-down of bonus depreciation (which was set to decline to 80% in 2023 under prior law), making the tax break permanent rather than temporary—a significant long-term revenue loss not highlighted in the title.
The full analysis lists 5 implications of this text.
Who stands to gain
manufacturers (all sectors); capital-intensive businesses; companies with foreign manufacturing operations