Navigating Trump 2.0

The One Big Beautiful Bill Act (H.R. 1) delivers the most significant federal push in decades to bring manufacturing and logistics production back to U.S. soil. It offers powerful tax incentives designed to accelerate facility upgrades, modernization, and domestic supply-chain expansion.

What’s New:

‍Permanent R&D Expensing
‍Beginning in tax year 2025, domestic R&D expenditures may be fully deducted in the year incurred—eliminating the five-year amortization requirement. Small businesses can even apply this deduction retroactively to R&D expenses incurred after 2021.

‍100% Bonus Depreciation + QPP Expensing
-->Section 168(k): Restores 100% bonus depreciation for tangible property (machinery, equipment, and tools) acquired after January 19, 2025
-->Section 168(n): Creates full expensing for Qualified Production Property (QPP)—covering new factories or qualified improvements to production-related real property.


‍EBITDA-Based Interest Deductibility
‍The bill permanently restores the pre‑2022 standard for the business interest deduction—allowing interest on loans and leases to be deducted based on EBITDA rather than EBIT, increasing borrowing capacity for capital-intensive projects

Why This Matters for Domestic Manufacturers
These provisions create a clear financial advantage for U.S. operations:
-->Immediate cost recovery on factory upgrades, automation, and facility investments—accelerating ROI and preserving capital.
-->Enhanced support for innovation by allowing immediate write-off of R&D investments.
-->Greater financing flexibility for capital-intensive expansion through improved interest deduction rules.

Whether you're modernizing a plant, expanding warehousing, or rebuilding supply chains—this legislation aligns the tax code with on-the-ground manufacturing growth.

How Veryable Helps You Respond Faster
While these incentives unlock powerful tax advantages, success still depends on your ability to scale operations quickly and efficiently.

That’s where Veryable comes in. Our on-demand labor model gives manufacturers and distributors the flexibility to:
-->Stand up new lines or facilities rapidly without long hiring cycles,
-->Handle demand surges tied to contracts, seasonal peaks, or reshoring wins,
-->Expand into new marketswith a lean, variable labor cost structure.

The bottom line: Veryable helps you turn federal incentives into real-world output—without adding long-term headcount or fixed cost.

On July 4, 2025, President Trump signed the H.R.1 – One Big Beautiful Bill Act into law, representing the most sweeping business tax reform since the Tax Cuts and Jobs Act (TCJA) of 2017. The bill makes several TCJA provisions permanent and introduces targeted incentives aimed at accelerating investment in the U.S. manufacturing, warehousing, and logistics sectors.

This legislation signals a strong federal commitment to reshoring industrial capacity, modernizing facilities, and incentivizing innovation through the tax code.

Key Provisions of the H.R.1 – One Big Beautiful Bill Act:

Permanent Full Expensing for Capital Investment
100% bonus depreciation is restored and made permanent for short-lived capital assets (under 20 years), including machinery, tools, and equipment.
‍
The bill adds a new provision under §168(n) allowing full expensing of Qualified Production Property (QPP) such as:
-->New manufacturing or logistics facilities
-->Upgrades to existing warehouses or production lines
-->Major capital improvements
Construction must begin before December 31, 2028, and assets must be placed in service before January 1, 2031.

Immediate R&D Expensing
The bill permanently restores the immediate deduction of R&D expenses, reversing the TCJA’s five-year amortization rule that took effect in 2022.📉

EBITDA-Based Interest Deductibility
-Reverts interest deduction limits back to an EBITDA basis (instead of EBIT), increasing financing flexibility—especially important for capital-intensive industries like manufacturing and logistics.

Corporate and Pass-Through Tax Clarity
The 21% corporate tax rate is retained permanently. While the bill does not raise the pass-through deduction, it extends the TCJA §199A deduction for pass-through businesses (like LLCs and S Corps) beyond its original sunset date of 2025.

International Tax Reform
The bill preserves and modifies key international tax rules including:
-FDII (Foreign-Derived Intangible Income)
-GILTI (Global Intangible Low-Taxed Income)
-BEAT (Base Erosion and Anti-Abuse Tax)These are adjusted to encourage onshoring of intellectual property and discourage profit shifting.

Estate Tax Exemption
The doubled estate tax exemption from the TCJA (approx. $13M per individual) is made permanent, protecting many family-owned manufacturers from estate tax exposure.

Implications for U.S. Manufacturing, Warehousing, and Logistics
-Major incentive to reshore operations and modernize domestic production
-Supports facility expansion, automation, and advanced manufacturing adoption
-Encourages contract manufacturing, especially for reshoring or nearshoring initiatives
-Improves financing options for asset-heavy operations via EBITDA treatmentMakes tax planning more predictable, encouraging longer-term investments

‍Bottom Line: This bill rewards U.S.-based investment. Companies that can scale efficiently, move quickly, and stay agile will be in the strongest position to win contracts, grow margins, and future-proof operations.

Following the signing of the One Big Beautiful Bill Act (H.R.1) and President Trump’s return to office, the administration has taken a more business-friendly regulatory stance—particularly in the areas of labor classificationand energy policy. While many deregulatory efforts are still unfolding, a few early moves are already impacting U.S. manufacturers and distributors.

Key Regulatory Developments

Labor Classification: DOL Halts Enforcement of Independent Contractor Rule
In May 2025, the U.S. Department of Labor formally announced it will not enforce the 2024 rule that tightened standards for classifying independent contractors under the Fair Labor Standards Act (FLSA).
-->This means employers face less risk of federal enforcement when using 1099 workers.
-->However, the 2024 rule remains in effect and can still be enforced through private litigation or state action.

Corporate Reporting: ESG and Transparency Rules Paused or Withdrawn
The administration has paused or withdrawn several proposed federal disclosure rules, including:
-->A climate-related financial disclosure mandate for federal contractors. These delays lower anticipated administrative burden but do not repeal existing laws, such as those under the Corporate Transparency Act (CTA).

Energy Policy: Signals of Deregulation
While H.R.1 does not contain direct environmental or permitting reforms, the administration has publicly signaled intentions to:
-->Repeal the EPA’s 2009 greenhouse gas endangerment finding—a foundational regulation underpinning many climate rules.
-->Review emissions standards for vehicles and industrial sources.
No final rulings have been published, but energy-intensive sectors (e.g., refining, mining, heavy manufacturing) are anticipating possible regulatory relief.

Implications for Manufacturers and Distributors
-->Increased labor flexibility from the DOL enforcement pause allows companies to use independent contractors more confidently to scale operations or meet temporary demand.
-->Reduced compliance risk around ESG reporting enables small and mid-sized manufacturers to allocate more resources to growth rather than administrative tracking.
-->Pending energy policy changes may lower operating costs over time, but businesses should continue monitoring regulatory developments closely.

How Veryable Helps You Stay Ahead
Even as the regulatory picture evolves, operational agility remains the advantage. With Veryable’s on-demand labor model manufacturers and distributors can:
-->Tap into a growing pool of skilled workers—while aligning with the DOL’s latest enforcement posture.
-->Adjust headcount quickly for production surges, facility expansions, or seasonal peaks—without the friction of long hiring cycles.
-->Stay lean, scalable, and focused on growth, even amid uncertain regulatory or market conditions.

Whether you’re navigating changing labor rules or positioning for tax-advantaged expansion, Veryable helps you execute with speed and confidence.

The second Trump administration continues to prioritize reshoring U.S. manufacturing, protecting domestic supply chains, and countering foreign dependencies. Recent trade actions—though not encapsulated in new legislation—reflect this strategic reorientation.

Confirmed Developments (As of July 2025)

‍U.S.– U.K. Bilateral Trade Agreement
-->On May 8, 2025, the U.S. and U.K. formally signed a bilateral agreement to reduce tariffs on UK-origin autos and steel, while expanding market access for U.S. agricultural and aerospace exports.
-->U.S. tariffs on UK steel and aluminum were eliminated, and auto tariffs were lowered from 27.5% to 10% for the first 100,000 vehicles annually.
-->In return, the UK granted U.S. exporters preferential access to sectors such as ethanol, beef, and industrial goods.

‍New Reciprocal Trade Frameworks with Japan, Indonesia & the Philippines
In July, the White House announced new trade agreements with Japan, Indonesia, and the Philippines.
-->Japan agreed to reduce proposed tariffs to 15% on autos and U.S. imports in exchange for opening its markets further to U.S. goods and committing $550 billion in investment.
-->Indonesia will eliminate nearly all tariffs on U.S. exports, particularly in agriculture and industrial goods.
-->The Philippines agreed to a tariff-free regime on certain U.S. goods while accepting a reciprocal 19% tariff on its exports to the U.S. 

U.S. - EU Framework Agreement
-->Finalized July 27–28, the deal sets a 15% tariff on most EU goods entering the U.S., averting a threatened 30%.
-->Steel and aluminum tariffs remain at 50%, unchanged.
-->The EU will invest $600B in the U.S. and increase U.S. energy purchases to $750B by 2027.
-->Update (August 1): Germany announced plans to negotiate steel export quota exemptions to ease tariff impacts.

U.S. South Korea Framework Agreement
-->Announced July 30, South Korean exports to the U.S. now face a 15% tariff (down from 25%), while U.S. exports to South Korea face zero tariffs.
-->Seoul also committed to $350B in U.S. investments and $100B in U.S. energy purchases, mainly LNG
-->U.S. auto and agricultural exports gain tariff-free access; South Korea retained protections on rice and beef.

Ongoing USMCA Monitoring — No Broad Renegotiation Yet
-->The required joint USMCA review is scheduled for mid‑2026. As of now, no official broad renegotiation has been declared.
-->Negotiations primarily focus on enforcement—not wholesale changes to rules of origin or labor provisions.

What It Means for U.S. Manufacturers & Distributors
-->Tariff reductions and new reciprocal frameworks open expanded export channels while maintaining pressure on trading partners to accept U.S. tariff terms.
-->If finalized agreements hold, these deals could encourage reshoring by favoring domestic and regional manufacturing.
-->Amid ongoing uncertainty—especially around potential tariff escalation in August—companies should:
--->Diversify suppliers
--->Review logistics dependencies
--->Prepare for sudden trade-policy shifts
--->Build flexibility into sourcing and labor models

How Veryable Helps You Stay Ahead
Trade dynamics are shifting. Whether you're reshoring, expanding into new markets, or adapting to tariff changes, speed and flexibility are everything.Veryable gives you the labor agility to move with the market—not behind it:
-->Ramp Quickly for New Demand
-->Stay Lean Through Uncertainty
-->Enter New Markets Without Overhead
-->Bridge the Gaps During Transitions