WASHINGTON, D.C. – Young companies, including technology startups, along with other innovative businesses are “dusting off U.S. hiring plans” after full immediate research and development (R&D) expensing was made permanent in The One, Big, Beautiful Bill. Recent reporting details how U.S. companies are scrapping plans to hire foreign labor and instead planning to hire home-grown American talent. Immediate full R&D expensing positions the United States as an attractive place to conduct research and development, making America more competitive against foreign nations, like China.  

“The One, Big, Beautiful Bill is helping reverse the all-too-familiar trend of American jobs being shipped overseas. Instead, high-paying tech jobs are being created here at home because of President Trump’s agenda that prioritizes investment in America and American workers,” said Ways and Means Committee Chairman Jason Smith (MO-08). “Under President Trump, America is winning more jobs and more investment and bringing economic prosperity to all corners of the country.” 

Immediate full R&D expensing drives innovation and productivity gains in the United States instead of foreign nations, like China. Manufacturers are the leading beneficiaries of the new policy, which is why the permanent expensing is a key part of President Trump’s vision of a booming domestic manufacturing sector, as it accelerates over $20 billion of investment in the short run and increases investment to $50 billion in the long term. 

Highlights:

• The One, Big, Beautiful Bill Fuels Domestic Hiring: “Tech startups are dusting off U.S. hiring plans after Congress revived a popular tax deduction—and the same change could drive domestic hiring more broadly as well, executives and tax professionals say.”
• California Startup Hiring American Workers: “Finta, a San Francisco-based tax-and-accounting software startup with fewer than a dozen employees, plans to fill five positions, including software engineers, in the U.S. instead of abroad by the end of the year…”
• Another California Startup Shifts Hiring to America: “Turing Labs, a Sunnyvale, Calif.-based startup applying artificial intelligence to consumer-product development, had been looking into hiring software engineers in Canada or Latin America…The tax-law change cuts the cost of domestic hiring by 20% to 25%, so instead Turing Labs plans to add five Bay Area software engineers to the two U.S. engineers it already employs by the fourth quarter, Shrimali said.”
• Growing Demand for American Tech Workers: “Demand for U.S. developers has jumped since early July at Burtch Works, a staffing agency specializing in U.S. data science and artificial intelligence roles, despite tariffs and other turmoil, Chief Executive Michael Butts said. ‘We’re up 15% to 20% in demand, and the economic uncertainty has not changed.’”

The One, Big, Beautiful Bill made a trio of pro-growth tax policies from the 2017 Trump tax cuts permanent: immediate full R&D amortization, 100% immediate expensing, and increased interest deductibility, in addition to enacting full expensing for the construction or expansion of a factory or manufacturing facility.

Factsheet: The One, Big, Beautiful Bill Fuels America’s Economic Growth

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