Support bonus depreciation extension to boost investments in new machinery, plant upgrades, robotics and other critical equipment needed for increased production:
– Under TCJA, manufacturers were able to immediately expense 100% of the cost of capital equipment purchases. However, this provision began to phase out in 2023 to 80% and will continue to fall 20% annually until it expires in 2027. International automakers make significant investments in new machinery, plant upgrades, robotics and other critical equipment needed for increased production.
– In 2023, international automakers produced 4.9 million vehicles across nine states accounting for 48% of all U.S. vehicle production. International automakers are expanding their production in 2025 and beyond, opening six new manufacturing and assembly plants in the U.S. from 2025-2030.