Connecticut is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:
213,800 Connecticut households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group in every Connecticut congressional district received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.
1,028,380 Connecticut households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.
45,200 Connecticut households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.
Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Connecticut residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, at least eight Connecticut utilities reduced their customers’ bills (see below).
Thanks to the tax cuts, Connecticut businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
Charter Communications, Inc. (Stamford, Connecticut) – Base wage raised to $15 per hour; commitment to hire over 20,000 employees by 2020:
With the resources and investment confidence resulting from historic tax reform legislation and the FCC’s removal of the 1930’s era regulatory framework for internet service, Charter is increasing our investment in our workforce by ensuring all employees are paid a minimum wage of at least $15 per hour, including target commissions, within the next year.
In addition, the reforms in Washington are allowing Charter to increase its capital investment including in its broadband network. Last year, given the general deregulatory environment and anticipating the Administration, Congress, and the FCC enacting these pro-growth policies, we announced we would hire 20,000 employees and invest $25 billion in infrastructure.
Today, with tax reform and the removal of the Title II statutory framework both a reality, Charter will continue the capital investment program we started last year and will complete it by 2020. In 2017, we extended the reach of our high-speed broadband network in rural areas like Meeker, CO, Lakeview, OR, Hawthorne, NV, as well as to more than 42,000 underserved and unserved homes and businesses in New York State. Charter remains steadfast in our commitment to continue to bring our broadband service, with a minimum speed of 100 Mbps, to more communities across the country. – Feb. 2 2018, Charter Communications Inc. statement
Kaman Corp. (Bloomfield, Connecticut) – $1,000 tax reform bonuses:
Bloomfield manufacturer Kaman Corp. says it’s joining the list of U.S. employers sharing the wealth with workers in the wake of federal tax reform.
The maker-supplier of aeroparts, custom aircraft and power-distribution products disclosed Wednesday that about 2,400 workers who were on its payroll on or before Oct. 1, 2017 and who earned less $75,000 a year are eligible for a $1,000 bonus. However, each must remain on the payroll through Aug. 31 to collect, CEO Neal J. Keating told staff in a memo. – April 18, 2018, Hartford Business Journal article excerpt
Thomas Hooker Brewery (Bloomfield, Connecticut) – The brewery used savings from the tax cut to expand the business and create new jobs:
U.S. Senator Richard Blumenthal of Connecticut says a federal tax credit for small-scale breweries, distilleries and wineries has helped create jobs in Connecticut.
The tax credit for small scale alcohol producers was initially part of the 2017 Trump tax cut. It’s been extended in the bipartisan federal budget passed by Congress last month. Blumenthal says he opposed Trump’s tax cuts to big business, but this particular tax cut is for small businesses and is a job creator.
“These craft breweries put the savings back into their businesses. They create jobs. They produce more beer. They meet demand. And they provide good value.”
Blumenthal spoke at Thomas Hooker Brewery in Bloomfield. Brewery owner Curt Cameron agrees that he’s putting 100% of his tax cut back into his business, “in our case a brand-new pizza kitchen, which is an offshoot of our existing business. It will create at least seven jobs immediately.”
If the tax break had not been extended, craft breweries like Thomas Hooker would have faced a federal excise tax increase of 400% this year. – Dec. 31, 2019, WSHU article.
Pitney Bowes (Stamford, Connecticut) – Pay raises for the majority of U.S. hourly employees:
Pitney Bowes, a global technology company that provides innovative products and solutions to power commerce, announced that, with the signing of the Tax Cuts and Jobs Act in December 2017, the Company will make an investment commitment of more than $18 million on an annualized basis to raise wages of the majority of its U.S. hourly employees. In addition, Pitney Bowes plans to fund key investment areas within the Company to provide more value to its small and medium business clients.
“The tax reform legislation provides Pitney Bowes the flexibility to invest in our people, our clients, our company, and the communities where we live and work,” said Marc B. Lautenbach, President and CEO. “We believe that the investments we make in our employees and our clients not only strengthen our business for the long term, but ultimately benefit our shareholders.”
In addition, Pitney Bowes plans to provide additional investments that contribute to the long-term growth of the Company, including funding the financing offerings within Pitney Bowes to support growth in its small and medium-sized business clients in the U.S. – Jan. 31 2018, Pitney Bowes press release excerpt
Shortway Brewing Co. (Newport, Connecticut) — Increasing wages and hiring new employees:
Mr. Shortway said the new tax plan, along with the Craft Beverage Modernization and Tax Reform Act, also passed last year, have already helped the brewery save money. The craft beverage act greatly reduced excise taxes on small-scale brewers and the tax plan has additional provisions designed to help small businesses.
Mr. Shortway said he was able to give his employees a small raise and hire more workers as a result of the tax savings. He said although it is a bit early to know what the long-term impact of the tax plan will be, he expects it will keep helping going forward.
“Growth is picking up,” he said. – May 11, 2018, News-Times article excerpt
AVANGRID (Orange, Connecticut) – The utility is passing along tax savings to customers:
Avangrid stated it will pass to its electricity and gas customers the full benefit of savings it will realize from the federal Tax Cuts and Jobs Act, with the Orange-based company’s service area covering portions of the New Haven and Bridgeport areas.
Avangrid issued a statement Wednesday night confirming the policy as “a matter of fairness,” more than a week after the Connecticut Public Utilities Regulatory Authority stated it would review Avangrid’s rates and those of other Connecticut electricity and gas utilities, with federal taxes a factor in the rates approved by PURA.
Avangrid subsidiaries include United Illuminating, Southern Connecticut Gas and Connecticut Natural Gas, as well as Central Maine Power and Maine Natural Gas; Berkshire Gas in Massachusetts; and New York State Electric & Gas and Rochester Gas & Electric.
Under the new tax law, U.S. companies will pay a 21 percent rate on their corporate income taxes, down from 35 percent. In December, PURA approved electricity rates for United Illuminating amounting to $375 million in 2018. The new federal tax rate would reduce that total by between $10 million and $11 million, according to Rich Sobolewski, supervisor of utility financial analysis for the office of Connecticut Consumer Counsel Elin Swanson, wiping out nearly the entirety of an $11.5 million distribution increase PURA had approved for this year. – January 11, 2018 Connecticut Post article excerpt
Eversource Energy (Boston, Massachusetts) – The utility is passing along tax savings to customers:
State utility regulators have cut an electric distribution rate increase Eversource Energy had sought by more than half.
Connecticut’s Public Utilities Regulatory Authority issued its final ruling on a distribution rate increase request that Eversource Energy filed in late November 2017. The Hartford-based utility originally had requested a rate increase that would have brought in $336.9 million in additional revenue over three years, but PURA’s commissioners ruled that the company should only get $127.7 million more.
“There was some hiring that they had originally planned to do, but didn’t,” Sobolewski said of Eversource. “And the impact of the (federal) corporate tax change knocked off about $55 million from their original request.” – April 18, 2018 New Haven Register article excerpt
Connecticut Light & Power (Berlin, Connecticut) – The utility is passing along tax savings to customers:
PURA approved a Settlement Agreement between Eversource, the Office of Consumer Counsel (OCC) and the Prosecutorial Staff of PURA (PRO) for rates effective April 1, 2018 that contained approximately $55 million in reduced federal income taxes associated with the TCJA. We estimate that this reduced the average Residential electric bill for CL&P/Eversource customers by approximately $2.00 per month and the average Business (Commercial) customer by approximately $15.00 per month. – Connecticut State Office of Consumer Counsel document
Yankee Gas (Berlin, Connecticut) – The utility is passing along tax savings to customers:
PURA approved a Settlement Agreement between Yankee Gas, the Office of Consumer Counsel (OCC) and the Prosecutorial Staff of PURA (PRO) for rates effective November 15, 2018 that contained approximately $8.7 million in reduced federal income taxes associated with the TCJA. We estimate that this reduced the average Residential gas bill for Yankee Gas customers by approximately $2.25 per month. – Connecticut State Office of Consumer Counsel document
Aquarion Water Company (Bridgeport, Connecticut) – The utility is passing along tax savings to customers:
PURA required AWC to defer about $4 million annually, until the company’s next rate case, associated with reduced federal income taxes associated with the TCJA. These future credits when applied could reduce future bills for the average residential customer by about $2.75 per quarter. – Connecticut State Office of Consumer Counsel document
Connecticut Natural Gas (East Hartford, Connecticut) – The utility is passing along tax savings to customers:
PURA approved a Settlement Agreement between CNG, the OCC and PRO for rates effective January 1, 2019 approximately $4 million in reduced federal income taxes associated with the TCJA. We estimate that this reduced the average Residential gas bill for CNG customers by approximately $1.18 per month. – Connecticut State Office of Consumer Counsel document
Southern Connecticut Gas (East Hartford, Connecticut) – The utility is passing along tax savings to customers:
Consistent with a prior settlement agreement, SCG is required to defer the federal income tax savings until the company’s next rate case. We estimate these as approximately $5.5 million annually. These future credits when applied could reduce future bills for the average residential customer by about $1.50 per month. – Connecticut State Office of Consumer Counsel document
Connecticut Water Company (Clinton, Connecticut) – The utility is passing along tax savings to customers:
In August 2018, PURA approved a settlement agreement between the Connecticut Water Company and the OCC, that included an offset to rates of approximately $1.5 million for reduced income tax expenses associated with the TCJA. We estimate this reduced the average residential bill by $3.00 per quarter. – Connecticut State Office of Consumer Counsel document
East Coast Kombucha (South Norwalk, Connecticut) — The kombucha brewery is setting up shop in an Opportunity Zone created by the Tax Cuts and Jobs Act:
After plans fizzled last year for a brewery adjacent to the SoNo Ice House skating rink, a kombucha startup has identified a new location in South Norwalk.
East Coast Kombucha is now listing its planned brewery operation at the Chestnut Street building that once housed Pac-Kit Safety Equipment, which assembled first-aid kits there prior to its 2011 sale to Fairfield-based Acme United which subsequently moved the operation to Washington.
Last year, East Coast Kombucha began the process needed to secure city approval for a brewery on Wilson Avenue in an enclave of brick buildings next to SoNo Ice House but did not move forward, with co-founder Steve Gaskin telling Hearst Connecticut Media at the time that the company was no longer searching for space in Norwalk.
East Coast Kombucha now lists its address as 57 Chestnut St. in South Norwalk, both on its Facebook page and in a job advertisement it posted last week seeking a kombucha brewer, with the fizzy drink produced through the addition of yeast and bacteria to tea.
The property at 57 Chestnut St. was purchased last year by an entity led by Keith Brown of RBA Properties in Norwalk. The building is in a city enterprise zone that allows tax incentives for certain activities including manufacturing.
The property is located as well at the southwesternmost corner of one of Norwalk’s three new “Opportunity Zone” districts authorized by the U.S. Department of the Treasury, which allows investors to claim tax breaks on any capital gains from the sale of startups, with the Wilson Avenue site lying outside that district.
Kombucha sales rose 37 percent in 2017 to $556 million, according to estimates published at last year’s KombuchaKon conference sponsored by the Kombucha Brewers International trade group.
Both Coca Cola and Pepsico of Purchase, N.Y., have acquired kombucha labels in the past few years in Mojo and Kevita respectively, with the Greenwich private equity firm KarpReilly having been a past investor in Kevita. On Monday, KarpReilly announced it had led a $3.5 million investment in a Colorado startup called Rowdy Mermaid Kombucha, with other investors including Brendan Synnott, founder of Bear Naked granola once based in Norwalk and owned today by Kellogg’s.
East Coast Kombucha is one of two KBI members in Connecticut, alongside Cross Culture Kombucha in Danbury which runs Thursday through Saturday a taproom on Division Street, while having expanded distribution to health food outlets like Green & Tonic and Sobol, the Westport Farmers Market and other cafes, restaurants and fitness centers.
Cross Culture hosted also a workshop last year to help people learn to brew kombucha at home. — February 18, 2019 The Hour article
The Travelers Companies, Inc. (Hartford, Connecticut) — $1,000 bonuses for 14,000 employees with a base salary less than $75,000:
Today, comprehensive U.S. tax reform has been signed into law. One objective of the legislation is to spur economic growth and therefore the U.S. economy.
In addition to benefiting from economic growth, Travelers will benefit directly from the legislation in two important ways. First, like all companies, our corporate tax rate will decrease from 35% to 21%. Second, the legislation will level the playing field for U.S. insurers by eliminating a loophole that foreign insurers have used to our disadvantage for decades to move their U.S. profits offshore to avoid paying their fair share of U.S. taxes.
One of the opportunities all of these benefits create for us is to make additional investments in our business. I shared at a recent all-employee meeting that our vision as it relates to investment and innovation is to strengthen our competitive advantages with two goals in mind: be the undeniable choice for the customer and an indispensable partner for our agents and brokers.
The leadership team decided that given our confidence in our business and the way we are successfully positioned for the opportunities ahead, we should start making additional investments immediately. We also came to the conclusion that we should use the opportunity to make our first investment in our most valuable asset and greatest competitive advantage — our people.
I’m pleased to announce that we will be giving approximately 14,000 employees with a base salary of $75,000 per year or less and who meet our performance expectations a special one-time bonus of $1,000. The bonus will be paid in January to then current employees. Eligible employees will hear more shortly.
In addition, while we have only a small number of U.S.-based employees making less than $15 an hour, we will increase their hourly wage to $15. – The Travelers Companies, Inc. note to employees
United Technologies Corporation (Farmington, Connecticut) – 35,000 new employees to be hired, and $15 billion in capital expenditures and research/development over the next five years:
The competitive tax system resulting from U.S. tax reform is encouraging global companies, such as United Technologies, to make long-term investments in innovation in America. – May 23, 2018 United Technologies Corporation press release excerpt
Hartford Financial Services Group Inc. (Hartford, Connecticut) — $1,000 bonuses for employees making less than $75,000 per year. This amounts to 9,500 employees:
The Hartford Financial Services Group Inc. on Friday became the latest company to announce bonuses tied to a federal overhaul reducing the corporate tax rate.
Chief Executive Officer Christopher Swift told reporters the investment and insurance company will distribute bonuses of $1,000 each to employees who are paid less than $75,000 a year. – Jan. 5 Hartford Courant article excerpt
Cigna Corporation (Bloomfield, Connecticut) – Base wage raised to $16 per hour; increased 401(k) matches:
Global health service company, Cigna (NYSE: CI), today announced that the net financial benefits of United States tax reform will allow the company to further accelerate investments in our employees, our capabilities and our customers, clients, partners, and communities.
Through a series of moves, Cigna is reaffirming the critical role of employees, further fueling the company’s commitment to be champions for its communities, and continuing its investments in innovation and capabilities that drive differentiated value for customers and clients.
“It is because of our employees that Cigna continues to deliver on our mission to improve the health, well-being and sense of security of those we serve,” said David Cordani, Cigna President and Chief Executive Officer. “Reinvesting a portion of savings from tax reform in our employees is a reinvestment in our mission.”
Effective today, Cigna is establishing a minimum wage across its U.S. employee base of $16 an hour, substantially exceeding the national minimum wage in the United States as well as the hourly rate paid at many global corporations.
Cigna will also provide salary increases above the $16 an hour level, largely to front line employees. These investments in employee wages will total more than $15 million.
Additionally, Cigna is adding $30 million to its 401(k) program to match an additional one percent of employee compensation contributed to the 401(k) in 2018. This match will benefit the retirement accounts of over 30,000 employees. – Jan. 31, 2018 Cigna Corporation press release
Information Services Group (Stamford, Connecticut) – $500 additional contribution to U.S. based employees’ 401(k) accounts, additional funds for global digital initiatives:
“Today it (Information Services Group) will earmark funds for additional investment in global digital initiatives over the next two years to accelerate growth, and make an additional contribution of $500 to every U.S. employee’s 401(k) retirement account on U.S. Tax Day, April 17, 2018. The moves are in response to the recent passage of the federal Tax Cut and Jobs Act.”—Dec. 22, 2018 Information Services Group press release excerpt
AT&T — $1,000 bonuses to 1,272 Connecticut employees; Nationwide, $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. — Dec. 20, 2017 AT&T Inc. press release
Webster Financial Corporation (Waterbury, Connecticut) – Base wage raised to $15 per hour; $1,000 bonuses to full-time employees below vice-president level; $1 million in additional charitable contributions:
Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A. and its HSA Bank division, today announced an acceleration of investment in its employees and the communities it serves following the passage of new federal tax reform legislation.
These investments include:
- Payment of a one-time $1,000 cash bonus in the first quarter of 2018 to full-time employees who are below the vice president level. This payment will benefit approximately 70 percent of all Webster full-time employees;
- Increasing Webster’s minimum wage to $15 per hour by the end of 2018;
- Beginning in 2018, augmenting Webster’s annual philanthropic and community investment by $1 million; and,
- Enhancing Webster’s investment in strategic employee development initiatives and early career programs, creating new job opportunities in our markets. – Jan. 4 2018, Webster Financial Corporation press release excerpt
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
- A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
- An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
- Instituting paid parental leave for eligible Associates in the U.S.
- Enhancing vacation benefits for certain U.S. Associates
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Windsor Federal Savings (Windsor, Connecticut) – $250 bonus for all employees with the exception of upper management:
With the signing of the tax reform bill into law all employees of Windsor Federal Savings with the exception of senior management will receive a one-time special bonus of $250. This bonus will coincide with their raising the hourly minimum wage of all full-time employees to $15.00 per hour.
George Hermann, President and CEO of Windsor Federal Savings, says the bank has a positive outlook on the economy due to the tax reform. “The relief that this tax bill provides to business should help to spur our economy, and is important to building meaningful, long-term growth in Connecticut, and beyond. The awarding of these bonuses and our minimum wage increase is our way of sharing our optimism with our most important asset: our valued employees.” – Windsor Federal Savings press release
Waste Management Inc. (Multiple locations in Connecticut) — $2,000 bonuses:
In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.
“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.
“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10, 2018 Waste Management Inc. press release excerpt
McDonald’s (150+ locations in Connecticut) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:
McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.
The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.
“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”
Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:
- Increased Tuition Investment:
- Crew: Eligible crew will have access to $2,500/year, up from $700/year.
- Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
- Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
- Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
- Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
- Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
- Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”
After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt
CarMax (Retail locations in Hartford and New Haven) – $250-$1,500 bonuses depending on length of service:
“The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company.” – Feb 23. 2018, EPR Retail News article excerpt
FedEx (Multiple locations in Connecticut) – Accelerated and increased compensation; pension plan contributions:
“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:
- Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
- A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
- Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release