(Washington, D.C.) – Congressman Glenn Grothman (R-WI) joins Senator Ted Cruz (R-TX) in introducing the CREATE JOBS Act, a bicameral bill which will restore key pro-manufacturing provisions of the Tax Cuts and Jobs Act (TCJA), incentivizing domestic production and creating over one million full-time jobs for hardworking Americans.
The CREATE JOBS Act would reinstate and make permanent two expired TCJA provisions that were vital in driving manufacturing growth and attracting investment back to the U.S. In addition, the bill applies neutral cost recovery for structures, such as factories. Taken together, these provisions will bolster manufacturing, raise wages, and create good-paying jobs.
“The Tax Cuts and Jobs Act (TCJA) delivered major wins for American families and workers, but some of its most powerful tools for growth have already expired, hurting the competitiveness of the manufacturing industry,” said Grothman. “Wisconsin’s Sixth District is the most manufacturing intensive district in the country, so I’ve seen directly how this affects the hardworking men and women at home.
“The bottom line is we must make these provisions permanent to support our manufacturers, restore what we know works, and expand policies that strengthen our economy and create jobs across the nation. After our workforce has suffered through inflation and economic turmoil over the past four years, I’m proud to join Senator Ted Cruz in introducing the CREATE JOBS Act to invest in American workers and grow our industrial base.”
“As Congress considers extending immediate deductions for research and equipment, it’s long past time to give structures similar treatment. The 2017 tax cuts were a leap forward for investment, but they left buildings behind. By fixing that omission, the CREATE JOBS Act levels the playing field for all types of investment and unlocks capital for American manufacturing. Updating cost recovery for all investments is the single most pro-manufacturing, pro-growth reform Congress could include in reconciliation,” said Adam Michel, Director of Tax Policy Studies at the Cato Institute.
“WMC thanks Rep. Grothman for his leadership making the Wisconsin and American economies pro-business. One-hundred percent bonus deprecation and full-expensing of R&D costs were boons for economic growth across Wisconsin and the country following the passage of the 2017 Tax Cuts and Jobs Act. Making these provisions permanent will provide predictability for business investments, make America more attractive for growth, and ultimately strengthen our economy. The CREATE JOBS Act is common-sense policy that is positively pro-business and promotes job creation right here in Wisconsin and across America,” said Kurt Bauer, President & CEO at Wisconsin Manufacturers & Commerce (WMC).
Background Information
The CREATE JOBS Act would make permanent two key pro-manufacturing provisions of the TCJA and create further incentives to produce domestically.
Specifically, the bill would make the bonus-depreciation and full-expensing for research and development (R&D) provisions of the TCJA permanent and apply neutral cost recovery to rental units and commercial structures, like factories.
According to the Tax Foundation, these provisions would increase long-run GDP by 5.1 percent, increase wages by 4.3 percent, and create over one million full-time jobs for American workers.
Senator Ted Cruz previously introduced this bill in 2020, 2021, and 2023.
