Congress quietly expands corporate tax breaks, shifting burden to wage earners
H.R. 3967 — CREATE JOBS Act · Filed by Glenn Grothman (R-WI) · 3 cosponsors · Introduced Jun 12, 2025 · Referred to committee
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What it does
This bill makes three major changes to business tax law: (1) it allows companies to immediately deduct 100% of the cost of equipment and property purchases instead of depreciating them over years; (2) it adjusts depreciation deductions for real estate based on inflation using a complex GDP deflator formula; and (3) it eliminates the requirement that research and development costs be amortized over time, allowing immediate expensing instead. The primary beneficiaries are corporations and businesses with significant capital investments and R&D spending.
Why we flagged it
The bill's core function is to accelerate and expand business tax deductions—allowing immediate expensing of capital and R&D costs rather than spreading them over time. This reduces taxable income for corporations and capital-intensive businesses, functioning as a targeted tax expenditure benefiting private enterprise.
What the text implies
- The 'neutral cost recovery ratio' formula tied to GDP deflators creates a mechanism that automatically increases real estate depreciation deductions as inflation rises, effectively indexing tax benefits to inflation in a way that benefits property owners disproportionately.
- Elimination of R&D amortization requirements means companies can claim full deductions immediately rather than over time, front-loading tax savings and reducing present-value tax liability compared to prior law.
The full analysis lists 4 implications of this text.
Who stands to gain
capital-intensive manufacturers; real estate investment trusts (REITs); technology and pharmaceutical companies with high R&D spending