KPMG article: Considerations for proposed factory building expensing as domestic production incentive
Impending tax bill could include provision for full expensing of “factory structures.”
In a recent press briefing, Treasury Secretary Scott Bessent noted that an impending tax bill could include a provision allowing full expensing of “factory structures”—presumably manufacturing facilities—in an effort to encourage domestic manufacturing. This comment comes after President Trump, in an address to Congress this spring, called for both an extension of 100% expensing and a reduction in the federal corporate tax rate from 21% to 15% for companies manufacturing their products in the United States. Trump made similar remarks throughout his presidential campaign.
Policymakers likely have many issues to address if they are considering providing full expensing for manufacturing facilities; most importantly, how will a “factory structure” (that is, manufacturing facility) be defined, and how will this benefit be coordinated with a potential domestic manufacturing rate reduction provision?
Read a May 2025 article* prepared by KPMG LLP tax professionals that discusses considerations for a potential domestic manufacturing incentive provision in the upcoming tax bill that would allow for full expensing of manufacturing facilities.
*This article appears in Tax Notes Federal (May 12, 2025) and is provided with permission.