House Passes Budget Reconciliation Bill with Key Tax Provisions for Manufacturers
On Thursday, May 22, 2025, the House of Representatives narrowly passed the Republican-only One Big Beautiful Bill Act (H.R. 1) by a vote of 215–214. The comprehensive reconciliation package includes tax, spending, and debt limit measures, featuring significant provisions for manufacturers. It addresses expired and expiring elements of the 2017 Tax Cuts and Jobs Act (TCJA), on which One Voice is lobbying and introduces new tax policies backed by the Trump administration, while allocating additional funding for defense and border security.
Key provisions in the House-Passed Bill:
- 100% Bonus Depreciation extended through 2029, retroactive to January 1, 2025.
- Full Expensing for R&D Costs through 2029, retroactive to January 1, 2025; eliminates amortization for 2025–2029.
- Interest Deductibility under Section 163(j) reverts to the EBITDA standard through 2029, retroactive to January 1, 2025; increases gross receipts threshold from $31 million to $100 million.
- 100% Depreciation for Qualified Production Property for construction starting between January 20, 2025, and December 31, 2028, placed in service by December 31, 2032.
- Section 199A Deduction Made Permanent, with the maximum deduction increased to 23% of qualified business income.
- Section 179 Deduction Expanded, increasing the maximum expense to $2.5 million, with a phase-out threshold starting at $4 million.
- Small Business Gross Receipts Test Raised from $25 million to $80 million, making more manufacturers eligible for Section 179 small business expensing.
- Estate and Gift Tax Exemption Enhanced and Made Permanent, with the exemption set at $15 million per individual for 2026 and indexed for inflation thereafter.
- Expanded Pell Grant Eligibility beginning July 1, 2026, for students enrolled in short-term, high-quality, workforce-aligned programs.
- 529 Plan Expansion to cover “qualified postsecondary credentialing expenses” related to recognized credential programs.
- Section 127 exclusion from income for certain employer-provided payments on qualified education loans made permanent, while adjusting the $5,250 limit on educational assistance payments for inflation.
- Debt Limit increased by $4 trillion.
The bill now moves to the Senate, where Republicans are working on their own version of the package. Several GOP Senators have signaled interest in making key provisions—such as R&D expensing, bonus depreciation, and the 163(j) EBITDA standard—permanent or extending them for a full decade, rather than the five-year window in the House bill. The Senate returns to Washington on June 2 and are aiming to pass the bill by July 4. Should the Senate make substantial revisions, the legislation would need to return to the House for final approval before it can be signed into law by President Trump.
Reciprocal Tariffs on China Lowered for 90 Days
One Voice Files Comments on Imports of Critical Minerals
On May 16, 2025, One Voice filed formal comments with the Department of Commerce’s Bureau of Industry to help inform an investigation into the potential national security risks of the import of processed critical minerals and their derivative products. The investigation, taken under Section 232 of the 1962 Trade Expansion Act, was launched by Commerce on April 22 following an executive order issued by the President on April 15, and covers the critical minerals identified by the United States Geological Survey (USGS) in its list last published in 2022 (https://www.federalregister.gov/documents/2022/02/24/2022-04027/2022-final-list-of-critical-minerals), which contains 50 minerals such as aluminum, beryllium, chromium, magnesium, nickel, tin, titanium, and zinc. The scope of the investigation also covers “derivative products” which includes all goods, both semi-finished and final products, that incorporate processed critical minerals as inputs, which could cover some motors and machinery
In the comments, One Voice urged the Commerce Department to find alternatives to tariffs on processed critical minerals as well as their derivative products to increase the domestic capacity and capabilities. “One Voice appreciates the Department of Commerce’s continued efforts to address the security and availability of critical minerals, which are essential to the strength and resilience of the U.S. manufacturing and defense industrial base. The associations support the Department’s intent to encourage the extraction and refining of critical minerals domestically and recognize the importance of reducing reliance on foreign sources for materials vital to national security and economic stability,” the comments state. “However, One Voice urges the Department to carefully consider the current limitations of domestic mineral production. Many of the critical minerals under review are either not presently extracted within the United States or do not exist in sufficient quantity as domestic resources. As such, access to imports remains indispensable in the near- to medium-term to meet the needs of U.S. manufacturers and to sustain critical supply chains.”
The associations also expressed concerns with the broad scope of the investigation. “Many finished and semi-finished products incorporate small quantities of critical minerals, often as alloying agents or in components not readily separable from the final product. Applying import restrictions to such a wide array of goods risks creating significant disruptions across industries without meaningfully advancing the policy goal of securing domestic supply chains. We urge the Department to take a targeted approach and to differentiate between strategic raw materials and incidental or minor uses in downstream products.”
Commerce is slated to report the findings of the investigation to President Trump by mid-October 2025, which could then result in the President taking action such as instituting tariffs, though some believe that an announcement could come sooner.
EPA Extends PFAS Reporting Period for Manufacturers
The U.S. Environmental Protection Agency (EPA) has announced an extension to the reporting period for manufacturers and importers of per- and polyfluoroalkyl substances (PFAS) under the Toxic Substances Control Act (TSCA) Section 8(a)(7). This interim final rule, released on May 12, 2025, delays the start of the submission period by nine months, moving it from July 11, 2025, to April 13, 2026. Consequently, the deadline for most manufacturers to submit their reports is now October 13, 2026. Small manufacturers reporting exclusively as article importers have until April 13, 2027, to comply.
In October 2023, the EPA finalized a rule mandating that any entity that has manufactured (including imported) PFAS in any year from 2011 through 2022 must report detailed information. This includes data on manufacturing, use, disposal, byproducts, worker exposures, and environmental and health effects of these substances.
The rule encompasses a broad of substances as there is no exhaustive list of chemicals that are considered PFAS. EPA broadly defines PFAS under the regulation as any chemical substance or mixture containing a chemical substance that structurally contains at least one of the following three sub-structures:
- R-(CF2)-CF(R′)R″, where both the CF2 and CF moieties are saturated carbons;
- R–CF2OCF2-R′, where R and R′ can either be F, O, or saturated carbons; and
- CF3C(CF3)R′R″, where R′ and R″ can either be F or saturated carbons.
This chemical definition includes many fluoropolymers, such as polytetrafluoroethylene (PTFE).
While the delay is effective immediately, the EPA is accepting public comments on this change through June 12, 2025. The agency is also considering reopening other aspects of the rule for public comment in a separate action.
Tariff Evasion Bill Introduced in Congress
A new bill introduced in Congress aims to close loopholes that allow non-market economies like China to evade U.S. tariffs under Section 301 by using transnational subsidies or rerouting goods through third countries. The proposed legislation, titled the Axing Nonmarket Tariff Evasion (ANTE) Act, would empower the Office of the U.S. Trade Representative (USTR) to apply Section 301 tariffs to goods imported from third-party countries if those imports are linked to investments from non-market economies designed to circumvent the tariffs.
Under the bill, USTR could launch an investigation—prompted by Congress or any interested party—into whether a “covered entity” is investing in or operating through a third country to avoid Section 301 duties. A “covered entity” is defined as one that is owned, controlled, directed by, or under the jurisdiction of a non-market economy. This includes entities where at least 25% of equity is held, directly or indirectly, by parties from such economies, including through joint ventures or contractual agreements.
If USTR determines that tariff evasion is occurring, it would have the authority to impose a “remedial measure,” which could include a tariff at least equal to the original Section 301 duty on the implicated goods.
One Voice has long been vocal on the tactics used by China to circumvent U.S. trade laws and duties, such as those the ANTE Act aims to prevent. In comments filed to USTR in March 2025, One Voice argued, “By injecting capital into Mexican firms, China creates a conduit for its goods to enter the U.S. market under the guise of Mexican-made products. These transnational subsidies enable Mexican companies to procure Chinese goods at lower costs, re-exporting them to the U.S. and further exploiting trade agreements like the United States-Mexico-Canada Agreement (USMCA). This practice not only circumvents tariffs but also undermines the intent of trade policies designed to protect American industries.”
“Such subsidies create an uneven playing field, as Chinese-backed Mexican firms can offer products at lower prices than their American counterparts. This competitive advantage not only undermines U.S. manufacturers but also distorts the true cost of production, masking the extent of foreign involvement in the goods entering the American market. The infusion of Chinese capital into Mexican businesses effectively turns them into conduits for circumventing U.S. tariffs and trade restrictions,” the comments continued. The ANTE Act was introduced in the House by Rep. Jodey Arrington (R-TX), chair of the Budget Committee and a member of the Ways & Means trade subcommittee. A companion bill was introduced in the Senate by Sen. Jim Banks (R-IN).