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Corporations to claim $16bn from retroactive GOP tax break, reports JCT

Corporations are set to claim $16bn in tax breaks this year for investments made before the Republican-backed “One Big Beautiful Bill Act” was passed in July, according to the Joint Committee on Taxation (JCT). The legislation reinstates 100% bonus depreciation, allowing companies to immediately deduct the full cost of capital investments like equipment and facilities. Though aimed at stimulating investment, the provision was made retroactive to January 19th, the day before Donald Trump began his second term, prompting criticism that it serves as a windfall rather than a genuine economic incentive. Over the next decade, the JCT estimates the rule will cost $362.7bn and boost GDP by 0.4%. Critics including Sen. Elizabeth Warren (D-MA) argue it disproportionately benefits large corporations, with over 80% of prior claims made by firms earning more than $1bn annually.

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