The 2025 federal tax and spending package, known as the “one big, beautiful bill,” was passed by Congress and signed into law by President Trump on Friday, July 4. The bill is one of the most significant pieces of tax legislation in recent years and will have a broad impact on various industries and businesses across the Dallas Region.

The DRC takes our members on regular trips to Washington, D.C. to advocate for policies that benefit the Dallas Region business community.
Through prioritizing domestic manufacturing, permanent tax relief, and supporting our talent pipeline, the bill provides a range of provisions designed to stimulate growth, innovation, and a strong workforce.

Here’s what businesses can expect from the changes.

2017 tax breaks are now permanent

Among the most impactful provisions of the bill are the expansion and permanence of the business tax relief rates passed in the 2017 Tax Cuts and Jobs Act. The corporate tax rate is now permanently lowered from 35% to 21%, and businesses can once again fully write off the cost of equipment in the year it was purchased and placed in service.

Additional tax breaks include immediate expensing for research and development costs, depreciable property, and manufacturing plant construction. These measures aim to provide businesses with certainty, support for long-term investments, and the ability to innovate and grow in the U.S.

Tax credits boosted for manufacturing, semiconductors, and advanced industries

In a major win for U.S. manufacturing, the bill increases tax credits for domestic manufacturing investments, particularly in the semiconductor industry. Semiconductor firms building manufacturing facilities in the U.S. will receive enhanced tax credits—boosted from 25% to 35%—to incentivize the chipmakers. These credits are expected to accelerate construction timelines, drive local job creation, and reduce dependence on foreign supply chains.

Broadened Pell eligibility will increase access to workforce training

The bill invests in increased access to workforce training for students through the establishment of the Workforce Pell program. This new program extends eligibility for the Pell Grant—the most common form of postsecondary financial aid in the country—to students enrolled in short-term training programs in high-demand, high-wage occupations.

Beginning in the 2026-27 school year, Workforce Pell will enable students pursuing certain credentials in critical industries—such as healthcare, technology, and construction—to draw down federal financial assistance for their education.

Expanded employer-provided child care credits ease workforce pressures

Recognizing the importance of a comprehensive approach to addressing the growing cost of child care, the bill significantly expands tax credits for employer-supported child care. Businesses can now receive up to $500,000 in tax credits for qualified child care programs, with 40% of related expenses now eligible. Previously, businesses could only receive up to $150,000 in credits, up to 25% of qualifying expenses. For small businesses, these credits increased to $600,000 and 50%, respectively.

Investments in small businesses aim to drive growth

The bill aims to provide a major boost for local small business owners. Eligible self-employed individuals and small business owners can qualify for a new 20% deduction of qualified business income (QBI). This deduction is designed to ease the tax burden on smaller firms, helping them to stay competitive with larger operations.

In addition to the percentage-based deduction, qualifying small business owners with a certain level of QBI will receive a minimum deduction of $400, regardless of income, providing long-term tax stability needed to grow, according to the U.S. Chamber of Commerce. These tax provisions aim to improve margins and spur investment for the large ecosystem of self-owned businesses across the Dallas Region.

What this means for business

These provisions in the bill represent a strategic federal investment in the future of the North Texas economy. From major manufacturers to small start-ups, the legislation provides tax certainty, enhances benefits for companies and workers, and ensures that critical industries can remain competitive on the world stage.

For the Dallas Region, this bill provides significant opportunity for our business community to leverage transformational federal policy to continue to shape the dynamic and resilient economy of the future.

Voices contributor Judith Tankel is vice president, public policy at the Dallas Regional Chamber.

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