Among the long list of tax cuts in the One Big Beautiful Bill Act, President Trump is rightly touting one of the most significant: Full, immediate business expensing.
In recent remarks, Trump noted that expensing encourages investment, brings manufacturing back to the United States, and drives job creation by allowing businesses to immediately deduct the full cost of new equipment and capital investments. The policy is already having an impact on workers, families, and businesses.
Speaking to the Detroit Economic Club on January 13, President Trump said:
“Our tax cuts also provided 100 percent bonus depreciation on all new equipment and capital investments, meaning that for any manufacturer looking to bring production back to America, you can write it all off — everything — not in 38 years, not in 44 years, in one year.”
“That’s the biggest thing. I think that’s the biggest thing. That’s the big job producer.”
President Trump reiterated the importance of expensing during remarks to global business leaders in Davos on January 21, 2026, where he highlighted worker-focused tax relief measures, including no taxes on tips and no taxes on overtime, alongside other provisions in the One Big Beautiful Bill Act, also known as the Working Families Tax Cut.
President Trump said:
“We also provided 100 percent expensing. That’s the one they like.”
“They build a plant. We’re able to deduct it immediately, the whole thing, rather than waiting 38 to 41 years in the old days.”
“This is a miracle taking place. Nobody thought it would ever be done by any country, but it’s done by us.”
Americans for Tax Reform has compiled expensing testimonials from businesses large and small from around the USA. For example, HM Manufacturing in Illinois was able to purchase $645,000 of equipment and create five new jobs. 1920 Tavern in Georgia purchased new flooring and new tabletops made by a local woodworker, hired more staff and increased employee pay. A dairy farmer in Pennsylvania was able to purchase new grain bins to increase his food storage capacity. See the list for more examples.
OBBBA Resources:
No Tax on Overtime Testimonials
