Here’s how the newly signed “One Big Beautiful Bill” is accelerating domestic production—and how McKinley is helping clients capitalize.
The Manufacturing Advantage Just Got Bigger
With the signing of the “One Big Beautiful Bill” (OBBBA) on July 4, 2025, manufacturers now have more reason than ever to expand or build new production facilities in the U.S. The sweeping legislation (retroactive to December 31, 2024) introduces a powerful lineup of tax incentives designed to stimulate domestic manufacturing and reinvestment.
From immediate deductions to stronger cash flow and enhanced planning certainty, these incentives aren’t just tax breaks—they’re strategic advantages. And McKinley is already helping clients turn them into real-world gains.
Why the New Incentives Matter
Whether you’re planning a greenfield build or scaling up an existing site, the new law offers multiple ways to improve project feasibility, reduce tax burden, and accelerate ROI. Here’s a closer look:
✓ 100% Bonus Depreciation
One of the most impactful changes in the new law is the return of full bonus depreciation. Manufacturers can now deduct 100% of the cost of qualifying new facilities and equipment in the year they are placed in service. This provision, now permanent for eligible assets, effectively lowers the after-tax cost of building, freeing up capital for reinvestment or debt reduction.
✓ Expanded Section 179 Expensing
Section 179 expensing has been expanded significantly, raising the deduction cap to $2.5 million (with a $4 million phase-out). That means manufacturers can now write off even more qualifying property (like equipment and certain improvements) immediately, improving first-year cash flow and budgeting flexibility.
✓ Better Interest Deductions
The bill also improves the treatment of interest on construction loans and capital expenditures. These changes help manufacturers secure better financing and reduce long-term debt service costs—an important consideration in capital-intensive industries.
✓ Permanent Pass-Through Benefits (199A)
For businesses structured as LLCs or S-Corps, the bill permanently extends the Section 199A deduction and increases its impact for many. This adds another layer of predictability and profitability for private manufacturers planning long-term growth.
Turning Legislation Into Opportunity
McKinley is actively supporting clients with new and ongoing manufacturing projects that qualify under these updated incentives, ensuring they’re aware of what’s available and positioned to capitalize. Strategic timing and proactive planning are already helping several of our partners strengthen ROI and move forward with greater confidence.
Why Timing Matters
The window to take full advantage of these incentives is already open and early adopters stand to gain the most. From improved liquidity to significant tax offsets, manufacturers who act now are positioned to build smarter, grow faster, and compete more effectively.
Let’s Build What’s Next, Together
We help clients maximize value at every stage. If you’re planning a facility upgrade or new build, now’s the time to start a conversation. Contact us to learn how today’s incentives can drive tomorrow’s growth.
