John Kartch

How the Republican Tax Cuts Are Helping Georgia

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, June 30th, 2021, 10:35 AM PERMALINK

Georgia is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:

142,930 Georgia 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.

688,320 Georgia households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Georgia 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.

3,001,180 Georgia 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.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Georgia 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 two Georgia utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Georgia businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Winton Machine (Suwanee, Georgia) - Capital investments; purchase of new equipment:

“Tax reform is enabling companies to make significant capital investments, and it’s creating more business for us and other small manufacturers,” said Ms. Winton.

Winton anticipates making her own capital investments. “We’ll be replacing two machines in our factory,” she said. - May 1, 2018, National Association of Manufacturers article excerpt

Evans Tool & Die (Conyers, Georgia) - new jobs, increased bonuses, and investment in new equipment:

“Generosity is one of our core values,” explained Dee Barnes, President and CEO of Evans Tool & Die. “We’ve always shared profit with our employees, and we have always given bonuses each year. With tax reform we will be able to increase those bonuses to our employees.

“We have a 40,000 square foot warehouse that’s ready to be used,” said Barnes. “We’re ready to grow, buy another stamping press, buy new equipment. In recent years, we haven’t been able to invest heavily into new equipment but now tax reform has definitely made it a good time to invest. Tax reform is causing new business to filter down to Evans, because we make small parts that go into bigger products. The supply chain has definitely been effected positively by tax reform.”

Evans is creating new jobs, but the labor pool for tool manufacturers is small. As a result, Evans is investing heavily in apprenticeship training for new employees and their existing employees.

“We’re raising up our own workers to ensure we have quality toolmakers,” said Barnes. “You can’t just go out and hire toolmakers anymore, because there aren’t any. We’ve partnered with tech schools to help them rebuild tool manufacturing programs. And we do everything we can to reward our employees, so they stay want to stay at Evans Tool & Die. Plus, we’re proud to help our workers provide for their families, with incredible healthcare and great benefits.” September 13, 2018 – National Association of Manufacturers

Aflac (Columbus, Georgia) – increase 401(k) match from 50% to 100% on the first 4% of compensation plus one-time $500 contribution to every employee’s 401(k); $250 million increase in overall U.S. investment.

"We are pleased that these tax reforms provide Aflac with an opportunity to increase our investments in initiatives that reflect our company values; providing for our employees in the long and short term, ensuring future growth for our company and giving back to the community." -- Aflac Chairman and CEO Dan Amos

Wild Adventures (Valdosta, Georgia) – $500 bonus to employees, health benefits, free admission to park for family and friends:

As South Georgia residents find themselves on the other side of Tax Day, some Wild Adventures Theme Park team members are receiving a $500 bonus thanks to the recent federal corporate tax cuts.

“We work hard at Wild Adventures to ensure our park is a great place to play and a great place to work,” said Molly Deese, Wild Adventures Vice-President and General Manager. “The memorable experiences our guests have are thanks to the hard work of our team members, and this bonus is just one way for us to show appreciation for their dedication.”

The bonus will be distributed the week of May 14 and will be awarded to hourly and salaried full-time team members who worked at least 1,000 hours in 2017 and are currently employed at Wild Adventures. Approximately 125 team members are eligible.In addition to this one-time bonus, Wild Adventures employees receive a variety of unique benefits throughout the year, including incentives for employees who stay with the company, complimentary admission to Wild Adventures and Splash Island Waterpark for family and friends, as well as various community-wide incentives. A comprehensive health benefits package is also available for qualified, full-time employees and qualifying seasonal team members. – April 18, 2018, SOWEGAlive.com article excerpt

Georgia Power (Atlanta, Georgia) – The utility is passing along tax savings to customers:

Georgia Power has completed an assessment of the impact of the Tax Cuts and Jobs Act for the company – including approximately $1.2 billion in benefits for customers. The benefits were confirmed as part of an agreement with Georgia Public Service Commission (PSC) Staff and include approximately $130 million in reduced taxes on financing costs for the Vogtle nuclear expansion; $330 million in direct credits to customers as a result of lower federal income tax rates over the next two years and approximately $700 million in future benefits to be addressed in the company's next base rate case in 2019, which also includes the benefits of last week's reduction in state of Georgia income tax rates. If approved by the Georgia PSC, the typical residential customer using an average of 1,000 kilowatt-hours per month could receive approximately $70 in refunds over the two-year period.

"We are committed to offering the highest customer value with rates below the national average, and we're pleased to be able to continue to pass the benefits of the new tax laws on to our customers," said Paul Bowers, chairman, president and CEO of Georgia Power. "We appreciate the collaborative effort with Georgia PSC Staff to evaluate the new tax laws and reach a joint agreement, which we hope the Commission will review and approve as the best way to deliver benefits to customers as quickly as possible." – March 6, 2018 Georgia Power article excerpt

Atlanta Gas Light (Atlanta, Georgia) – The utility is passing along tax savings to customers:

The Georgia Public Service Commission (PSC) today voted to approve a stipulation reached between its staff and Atlanta Gas Light Company (Atlanta Gas Light) that provides for $82 million in customer benefits stemming from the Tax Cuts and Jobs Act (TCJA) of 2017, including $16 million in rate credits to be passed on to Atlanta Gas Light customers beginning in July. 

“We are committed to providing efficient and effective energy solutions to our communities,” said Bryan Batson, president of Atlanta Gas Light. “The PSC’s order strikes the proper balance of allowing Atlanta Gas Light to continue making important safety and modernization investments in infrastructure programs while returning the net benefits of tax reform to customers.”

The stipulation recognizes the benefits of the federal tax reform law, including the lowering of the federal corporate income tax rate from 35 to 21 percent. It also factors in the negative impacts to utilities, such as the loss of bonus deprecation and cash flow shortfall caused by the change in tax rates. To compensate for that loss in working capital, the PSC agreed to adjust the Company’s equity ratio, which should benefit the utility and customers by helping protect credit ratings and preserve lower borrowing costs. - May 15, 2018 Atlanta Gas Light press release

Ivey Development (Augusta, Georgia) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Ivey said the federal "Opportunity Zone" tax benefits, which were created by the Tax Cuts and Jobs Act of 2017 to spur investment in economically-distressed census tracts, helped make the project financially feasible. He said metro Augusta's multi-family development costs are as high as other Southeastern markets, while its rents are comparatively low.

"The Opportunity Zone credits really helped get this thing over the hump," he said. -- December 7, 2019 Augusta Chronicle article

Pratt Industries (Conyers, Georgia) - Investing $2 billion into the United States:

Anthony Pratt, the richest person in Australia, will be investing nearly $2 billion in the U.S. in hopes of creating new jobs and doubling American food production – and he credits it all to President Trump’s business-friendly Tax Cuts and Jobs Act of 2017.

The tax overhaul slashed the corporate tax rate to 21% from 35% in hopes of making the U.S. more competitive with foreign countries.

“It’s going to lead to a tsunami of investment in the United States,” he said during an interview with FOX Business’ Stuart Varney on Tuesday. “We make corrugated boxes, everything that's manufactured goes in a box. So we think we’re a barometer of the economy.”

--

The billionaire cardboard king hopes to add 5,000 jobs more to the economy with his latest investment. - June 26, 2018 Fox Business Network article excerpt

Sanctuary Companies (Kennesaw, Georgia) -- The company is building a mixed-use building that will include residential units in an Opportunity Zone created by the Tax Cuts and Jobs Act:

The Cherokee Street corridor between McCollum Parkway and downtown Kennesaw is undergoing a major facelift due to the $280 million Eastpark Village mixed-use development.

The area was identified for redevelopment in 2008 and work began more than three years ago. This week, Chad Howie of Sanctuary Companies, the master developer, provided an update on the project to the City Council.

The development will sit on about 55 acres of land and will include 850 residential units with a mixture of apartments, townhomes and senior living. About 300,000 square feet will be put to commercial use, including retail, self-storage, office space and restaurants.

According to Howie, several real estate brokers, two private detectives and city staff worked to identify the sellers and the developer ultimately acquired 68 properties. He said the company worked with homeowners, tenants and business owners on relocation, and the properties were rezoned T4O and T4L in December 2017.

Earlier this year, the council approved the creation of an entertainment district in downtown Kennesaw, allowing patrons to purchase and walk around with alcoholic beverages. Once the first business to obtain a liquor license is operational, Eastpark Village will also have an entertainment district extending from McCollum Parkway to Poplar Drive, between Cherokee Street and Grant Drive.

"I am very excited about the progress being made," said Darryl Simmons, Kennesaw's zoning administrator. "This development serves as a positive example of partnerships between local government and the development community."

There are also plans to widen Cherokee Street to five lanes, as well as incorporate multi-use trails and make the downtown area accessible to pedestrians.

Howie showed the council photos of the recently completed demolition of much of the area, including Ashton Commons Business Park and residential areas along Smith, Maple, Pine and Rock Springs drives. Big Shanty Smokehouse, a popular barbecue restaurant, is relocating two houses up to the corner of Smith Drive and Cherokee Street since the street widening will negatively affect their current parking situation.

The city applied to the Department of Community Affairs to designate the retail district as an opportunity zone, a tax credit program through the state. Any new businesses creating jobs that meet specified criteria in the zone are eligible for income tax credits per job for a prescribed period of time, according to Robert Fox, economic development director for Kennesaw. DCA denied the application, but the city intends to try and make a case for reconsideration. -- July 31, 2019 Cherokee Tribune article

Yancey Bros. (Cobb County, Georgia) -- $500 bonuses for 1,200 employees.

Mincey Marble (Gainesville, Georgia) – Bonuses of up to $1,000 based on length of service:

“As the owner of a family business, I want to share how tax reform is benefitting Americans at every level. Companies big and small are passing along tax savings to the workers who help build our economy. I hope that the bonuses Mincey Marble is providing encourage other businesses in our great state to pay it forward, because the Tax Cuts and Jobs Act is the kind of meaningful change that can help transform communities by bringing relief to American workers and families,” said [Mincey Marble President and CEO Donna] Mincey.

Employees at Mincey Marble will receive bonuses of up to $1,000 depending on their length of service with the company. Even employees hired this year will see a bonus, and the checks are scheduled to arrive during the week of Valentine’s Day as a sign of the company’s appreciation for its associates. – Jan. 31 2018,  press release

Total System Services Inc. (Columbus, Georgia) $1,000 bonuses:

Total System Services Inc. (NYSE: TSS) is crediting tax reform for cash bonuses going to their team members worldwide.

A spokesperson for the Columbus, Ga.-based credit card processor best known as TSYS told Atlanta Business Chronicle that it made an internal announcement Tuesday that team members would receive a "special one-time cash bonus of $1,000" as "a result of the company’s continued success and the recently passed U.S. tax reform legislation." – Jan. 2, 2018 Atlanta Business Chronicle article excerpt

Quarry Yard (Atlanta, Georgia) – The Opportunity Zone led to the creation of a 74-acre, mixed-use project:

This mixed-use project could blend thousands of residential units with office, retail and even hotel space. “An area developer filed plans with the state in August for a 74-acre, mixed-use project in an Opportunity Zone near the Westside Park at Bellwood Quarry. And in early September, an Atlanta-based film company announced it will build recording studios, sound stages and a technology center on 30 acres of its Opportunity Zone property on Continental Colony Pkwy SW.” – August 26th, 2019, Atlanta Business Chronicle

Cox Enterprises (Atlanta, Georgia) -- $2,000 bonuses to be paid on Tax Day:

Georgia's largest privately owned company is reportedly joining the tax reform bonus parade.

Fox Business reported that Cox Enterprises said earlier this week that the most of the company's nearly 60,000 employees will receive bonuses of $1,000-$2,000 because of the $1.5 trillion tax bill. Cox employs more than 8,700 workers in Atlanta.

The bonuses will be distributed on Tax Day to employees who have worked at Cox Enterprises for at least a year and are not part of an executive incentive plan, according to Fox.

Phoenix Business Journal reports the bonuses will go to all Cox Enterprise employees, which includes Cox Automotive, Ready Transport, AutoTrader, Kelly Blue Book and Cox Media Group, which has reportedly been taking bids to sell some of its biggest remaining newspapers.

“Cox Communications continues to invest in new businesses such as telecom infrastructure and health care, in building its own infrastructure to better power the smart homes, smart businesses and smart cities of the future — $10 billion in capex the next five years — in the communities it serves via corporate giving — approximately $70 million per year — and in its greatest resource, our employees," said John Wolfe, senior vice president and regional manager for Cox in Arizona. -- March 9, 2018 Atlanta Business Chronicle article excerpt

Rockefeller Foundation (Atlanta, Georgia) – The city is seeing big economic growth because of the TCJA Opportunity Zone legislation:

“The federal Qualified Opportunity Zones program, created as part of the Tax Cuts and Jobs Act of 2017, draws investors to struggling areas by offering them a chance to defer tax on eligible capital gains if they make an appropriate investment in a fund associated with a designated zone and meet other requirements.

“Atlanta is home to 26 of Georgia’s Opportunity Zones, which have seen a lot of activity. Since November 2017, 52 commercial and industrial properties have sold in Atlanta Opportunity Zones, funneling a total of $78 million in new capital to those areas, according to the real estate data service, Reonomy…” – September 25th, 2019, Atlanta Business Chronicle

T.J. Maxx – 50 stores in Georgia – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:

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:

Associates

  • 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

Communities

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

Expanded Technologies, Inc. (Marietta, Georgia) – Minimum bonuses of $500 for each employee, additional cash depending on the length of service:

Expanded Technologies, Inc. (ETI) is a privately held corporation based in Marietta, GA which specializes in the manufacture of light gage expanded metal used in the support of HVAC filtration.

As a result of the Tax Cut and Job Act recently enacted by the Trump Administration, we are pleased to announce that ETI will give each of its 77 employees a bonus of $500 cash along with an additional sum for each year of service." -- Statement by Jean-Luc Liverato of Expanded Technologies, Inc.

American Proteins Inc. (Cumming, Georgia)— $1,000 bonuses:

American Proteins Inc. based in Cumming has 700 employees at its operations in Georgia and Alabama. It announced it would give employees $1,000 bonuses "in response to the tax reform package signed into law earlier this year."

"President Donald Trump and the Republican Congress have reduced taxes for businesses and individuals and I'm excited what this means for our company and its employees," American Proteins Inc. Chairman Tommy Bagwell said in a statement Feb. 5.” Feb. 26 2018, Atlanta Business Chronicle article excerpt

Carl Black Automotive Group (Kennesaw, Georgia) -- Bonuses to over 500 employees.

Carter’s, Inc. (Atlanta, Georgia) – Bonuses for non-executive employees: Full-time employees will receive a bonus of approx. 5% of base salary and part-time employees will receive a bonus of approx. $100 per year of service to the company; increased retirement fund match:

“The Tax Cuts and Jobs Act of 2017 is expected to have a significant and positive impact on our Company’s future earnings, cash flow, and ability to invest in its growth strategies. In 2018, we plan to reinvest approximately half of the $40 million benefit from the lower corporate tax rate in brand marketing and improved eCommerce capabilities.

“Given the significant and unexpected benefit in 2017 of the historic tax reform legislation, we are also announcing today that our Board of Directors has approved $20 million in special compensation awards to all of our Company’s eligible full-time and part-time employees provided through enhanced retirement plan contributions and bonuses.

--

The Company’s provision for income taxes in the fourth quarter of fiscal 2017 includes a net tax benefit of $40.0 million related to the enactment of the Tax Cuts and Jobs Act of 2017. This net tax benefit consists of a $50.4 million benefit related to revaluation of the Company’s deferred tax assets and liabilities and a $10.4 million provisional estimate for additional tax expense related to accumulated earnings outside of the United States.

Fourth quarter fiscal 2017 results also include pretax expense of $21.2 million for special compensation and related payroll taxes awarded as a result of this tax reform legislation. The nature of the special compensation includes:

Cash bonuses to full-time and part-time global employees with one year of service, with full-time employees receiving a bonus of approximately 5% of base salary and part-time employees receiving approximately $100 per year of service with the Company. The Company’s leadership team will not receive these special bonuses.

A 100% match of employee voluntary contributions to Company-sponsored retirement programs, subject to certain statutory thresholds and limits. -- Feb. 27, 2018 Carter’s, Inc. statement excerpts

Fifth Third Bancorp33 locations in Georgia,  $1,000 bonuses for Georgia employees; base wage will rise to $15.

Newly passed tax legislation includes a reduction in corporate tax rates designed to spur economic growth. Carmichael said the tax cut allowed the Bank the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce.

Carmichael said the higher wage is an important step to help support individuals, their families and the communities in which we operate. Fifth Third has a history of investing in its 18,000 employees.

Once the legislation is signed into law, nearly 3,000 hourly employees will see their pay increase to $15 an hour. The one-time $1,000 bonus is expected to be distributed by the end of the year, assuming the president signs the bill before Christmas. Senior managers and executive leadership are excluded from this compensation.

“It is good for our communities, employees and Fifth Third Bank,” [President and CEO Greg] Carmichael said. – Fifth Third press release

Home Depot (headquarters in Atlanta, plus 90 Georgia retail locations) – Bonuses for all hourly employees, up to $1,000:

Today, The Home Depot® announced plans to provide a new one-time cash bonus for U.S. hourly associates of up to $1,000 in the fourth quarter of fiscal 2017.  The bonus will be paid in addition to the Company's longstanding Success Sharing bonuses for hourly associates.

"We are pleased to be able to provide this additional reward to our associates for continuing to deliver outstanding customer service," said Craig Menear, Chairman, CEO and President. "This incremental investment in our associates was made possible by the new tax reform bill." -- Jan. 25, 2018 Home Depot press release

Starbucks Coffee Company -- (326 locations in Georgia) 500 new manufacturing jobs in its Augusta, Georgia coffee plant. $500 stock grants for all Starbucks retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants, totaling more than $100 million in stock grants; 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave. 

SunTrust Banks, Inc. (Atlanta, Georgia) – base wage raise to $15 per hour; $50 million in additional community grants; merit pay raise; additional 401(k) contributions; etc:

SunTrust Banks, Inc. (NYSE: STI) is taking a series of actions to invest savings from tax reform in supporting the financial wellness of its workforce and communities.   

"The anticipated benefits from tax reform allow us to build upon our purpose of Lighting the Way to Financial Well-Being in a sustainable way by implementing actions that will have a multi-year impact for many of the constituents that count on us," said Bill Rogers, SunTrust chairman and CEO. "We believe tax reform will improve the competitiveness of American business and promote economic growth, and this gives us confidence to invest more in our company, our teammates and the communities we serve." – Dec. 28 2017, SunTrust Banks, Inc. press release

Shred-X (Griffin, Georgia) – New truck purchase and the potential hire of a new employee:

In Griffin, Shred-X, a small business providing paper shredding and recycling services to over 3,000 clients throughout Atlanta and central Georgia, plans to use the additional savings from tax reform to buy a new truck and potentially hire a new employee. For a company of ten people, that makes a huge difference.

As Shred-X owner Cade Joiner said, “This is just one practical example of how tax reform is helping us here on Main Street.” Feb. 4 2018, The LeGrange Daily News article excerpt

Synovus Financial Corporation (Columbus, Georgia) – $1,000 bonuses to all non-executive employees.

AR-15 Gun Owners of America (Warner Robins, Georgia) – tax reform bonuses; increased salaries for all employees.

Best Buy -- 37 locations in Georgia; $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.

Lowes 63 stores and four distribution centers in Georgia; bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

 

Apple (There are six Apple retail stores in Georgia: Alpharetta, Augusta, Buford, and three in Atlanta) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

AT&T -- 17,366 AT&T employees in Georgia received $1,000 bonuses. Nationwide, the company will increase capital expenditures by $1 billion.

Bank of America (Multiple locations in Georgia) -- $1,000 bonuses.

BB&T (Multiple locations in Georgia) – $1,200 bonuses; base wage will rise from $12 to $15 per hour; Nationally, $100 million in charitable donations

 

Chipotle Mexican Grill (Multiple locations in Georgia) – Bonuses ranging from $250 to $1,000; increased employee benefits; Nationally, $50 million investment in existing restaurants.

Cintas Corporation (Multiple locations in Georgia) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.

CVS Health (Multiple locations in Georgia) -- Base wage raised to $11 per hour, and other pay ranges adjusted accordingly; the company will absorb increased costs of health insurance premiums; creation of new parental leave program.

Comcast (Multiple locations in Georgia) -- $1,000 bonuses; at least $50 billion investment in infrastructure in next five years.

Ryder (31 locations in Georgia) – Tax reform bonuses for all non-incentive bonus eligible employees, totaling $23 million nationwide.

U-Haul (Multiple locations in Georgia) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Walmart189 locations in Georgia; Base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.

Waste Management, Inc. (Multiple locations in Georgia) -- $2,000 bonuses.

Wells Fargo 259 bank locations in Georgia -- Base wage raised from $13.50 to $15.00 per hour; Nationwide, $400 million in charitable donations for 2018, and $100 million increased capital investment over next three years.

McDonald’s (500+ locations in Georgia) – 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 

Anthem (Multiple locations in Georgia) -- $1,000 in extra 401(k) contributions.

Note: If you know of other Georgia examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

 

More from Americans for Tax Reform


How the Republican Tax Cuts Are Helping North Carolina

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, June 30th, 2021, 7:55 AM PERMALINK

Joe Biden and Kamala Harris have threatened numerous times to repeal the Tax Cuts and Jobs Act on "Day One." But North Carolina is benefiting greatly from the tax cuts enacted by Republicans in 2017:

153,310 North Carolina households are no longer stuck paying the much-loathed individual mandate tax, thanks to the TCJA's elimination of this tax. 77% of NC households hit with this tax made less than $50,000 per year. Be warned, Joe Biden wants to bring this tax back from the dead, one of the many reasons Biden can't be trusted on taxes.

704,160 North Carolina households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every North Carolina 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.

3,241,150 North Carolina 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.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, North Carolina 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 two North Carolina utilities reduced their customers' bills (see below).

Thanks to the tax cuts, North Carolina businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

C.R. Onsrud (Troutman, North Carolina) -- The Tax Cuts and Jobs Act has allowed the company to hire 40 new employees and invest over $8 million in plant upgrades and new equipment.

“At C.R. Onsrud, we appreciate Rep. Budd’s commitment to pro-growth policies and regulatory reform, said Tom Onsrud, president and CEO of C.R. Onsrud. His vote for the tax legislation was a clear message that he stands with manufacturers and manufacturing workers across America. As a direct result of the tax legislation, C.R. Onsrud has hired an additional 40 employees and, due to the immediate capital expensing provision of the law, has invested over $8 million in plant upgrades and equipment necessary to grow our business. Because of Rep. Budd’s leadership in Washington, manufacturing in North Carolina will only continue to flourish.” -- August 30, 2018 NAM Shopfloor Blog

Power Curbers, Inc. (Salisbury, North Carolina) -- Added new jobs, added bonuses for workers, and is investing more in research and development because of the Tax Cuts and Jobs Act. 

“All of us at Power Curbers Companies are pleased with Rep. Budd’s vote to enact the new tax law, said Dyke Messinger, President of Power Curbers, Inc. Our employment has grown since the law was enacted; we paid a bonus for 2017 and will pay another bonus for the first six months of 2018. In addition, we are investing heavily in R&D, which will continue to strengthen the company for the long term.” -- July 2, 2018 NAM Shopfloor Blog

Ghostface Brewing (Mooresville, North Carolina) – Hiring new employees, purchasing more equipment, and increasing distribution:

Mike Cuddy, owner of Ghostface Brewing in Mooresville, N.C., said his company also used the tax break to buy more equipment, hire more people and focus on distribution to local grocery stores and restaurants. – April 26, 2018, MarketWatch article excerpt

Benchmark Auto Sales (Asheville, North Carolina) – thanks to tax reform, 100 percent of the staff now has employer-provided health insurance:

A weight many Americans shoulder everyday is now gone for the people who work in gravel lot filled with cars along Brevard Road near the Blue Ridge Parkway.

We're talking health care.

We had 80 percent of our staff was not insured. We have 100 percent insured now. That's a big feat," Benchmark Auto Sales owner Joe Segrave said.

It was Segrave's decision, but he said it would not have happened without the tax bill that finally passed on Capitol Hill.

"I think all of us share a certain level of disgust with what's going on with politics in our nation, and, really, I like to keep this as an apolitical decision," Segrave said. "The bottom line is I had a chance to pay it forward to my employees." – WLOS ABC News 13 report

The Raleigh Rum Company (Raleigh, North Carolina) – The company was able to reinvest in the business because of the Tax Cuts and Jobs Act:

The Raleigh Rum Company got its start back in 2014. 

“The Raleigh Rum Company was actually started by three of us. We’re actually friends from high school. We went to Apex High in the area and we actually were just really inspired by the awesome craft beer that was in the area,” Matt Grossman, Co-Founder said.

Both local businesses helped by the Craft Beverage Modernization and Tax Reform Act that Congress passed back in 2017.

It lowered the federal excise tax from $13.50 per proof gallon to $2.70. Per bottle, the tax went down from $2.14 to 43 cents. 

“That was a big impact for us. We were able to kinda reinvest into our business. Operate our equipment a little bit. We were definitely planning on making some hires here pretty soon,” Grossman said. – Dec. 17, 2019, CBS 17 article.

Southern Elevator Co. (Greensboro, North Carolina) -- Because of the Tax Cuts and Jobs Act, the company was able to expand their capital and purchase new equipment.

“All of us at Southern Elevator are grateful for Rep. Budd’s commitment to economic growth and his vote to enact the new tax law, said Rodney Pitts, Chairman and CEO of Southern Elevator Company. The immediate capital expensing provision of the tax law has made a significant difference in Southern Elevator’s ability to grow and purchase equipment, and we consistently hear the same from our manufacturing clients. Because of Rep. Budd’s leadership in Congress, manufacturing in North Carolina will only continue to flourish.” -- August 24, 2018 NAM Shopfloor Blog

TradeMark Properties (Raleigh, North Carolina) -- The company is building a soccer stadium in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Raleigh developer John Kane, who spearheaded the resurrection of North Hills and the Warehouse District, teamed with local soccer leader Steve Malik and TradeMark Properties owner Billie Redmond Monday evening to unveil his next target: what the group is calling "Downtown South" in a project even bigger in scope than originally anticipated.

Kane, Redmond and Malik will be at a news conference Tuesday morning at The Dillon, debuting plans for a 20,000-seat soccer stadium that would serve as the hub for a sprawling district that would include hotels and residential and retail units.
...

The site is in an Opportunity Zone, a big incentive for investors. The Opportunity Zones were created with the tax changes in 2017 and give investors significant tax breaks for investing in areas that have been traditionally underserved. -- June 25, 2019 Triangle Business Journal article

Ketchie (Concord, North Carolina) -- $500,000 capital investment in equipment:

“Because of this huge demand, Ketchie was able to make a number of capital investments,” Silver said. 

Silver said the company had it’s best year in history, with sales increasing by 25% year after year. -- June 19, 2019 National Association of Manufacturers Shop Floor Blog

BB&T (Winston-Salem, North Carolina) – The base wage was increased from $12 to $15 per hour; $100 million in charitable donations; $1,200 bonuses for 27,000 employees:

“Overall, BB&T's Executive Management team believes the successful passage of tax reform is very encouraging news that should move BB&T, the financial services industry and the U.S. economy in the direction of stronger growth.” – BB&T press release

Charlotte Pipe and Foundry Company (Charlotte, North Carolina) -- $1,000 bonuses for all 1,400 employees:

Charlotte Pipe and Foundry joined the growing list of companies to deliver pay bonuses to their employees after the Republican-led tax cut dropped corporate and individual income taxes for most Americans.  Charlotte Pipe will give all associates $1,000 each on March 15.

“We are excited to share the benefits of our associates’ diligent efforts, loyalty, and dedication to Charlotte Pipe, and the benefits that will accrue from The Tax Cuts and Jobs Act,” said Roddy Dowd, Jr., CEO of Charlotte Pipe and Foundry. The company is based in Charlotte with seven plants across the U.S. making cast iron and plastic pipe fittings. The majority of their 1,400 employees are in North Carolina. – Jan. 17, 2018 North State Journal article excerpt

Aquesta Financial Holdings (Cornelius, North Carolina) -- Base wage increased to $15 per hour; $1,000 bonuses to 95 employees:

"We are very happy to share with our valuable team members some portion of the benefits Aquesta will realize by the enactment of Tax Reform. Decreased tax rates will allow Aquesta Bank to continue to grow by accelerating lending to small businesses and hiring additional team members to help with that growth.  While almost all of our employees will also pay lower taxes in 2018 due to this new law, we felt that immediate recognition of their importance to Aquesta would send the right message: our people are what makes Aquesta different." Dec. 21 2017, Aquesta Financial Holdings press release

Atlantic Packaging (Wilmington, North Carolina) -- $1,000 bonuses for 1,000 employees:

Atlantic Packaging, one of North Carolina's largest privately held companies, headquartered in Wilmington, announced today that management is awarding $1,000 bonuses immediately to full-time employees. Nearly 1,000 Atlantic employees will receive the bonus payment…

--

"Our people are what make this organization successful and, though the tax benefit will not come until the end of 2018, we are distributing the bonus dollars now to acknowledge its impact," he said. "The new tax code helps U.S. companies remain healthy and competitive in a global marketplace, and that directly and positively affects the people who work at these companies." -- Jan. 23 2018, Atlantic Packaging press release excerpts

The Hammock Source (Greenville, North Carolina) -- all 150 employees received a tax reform bonus of up to $1,000 depending on length of service:

"We at The Hammock Source want to continue to invest in the people that have made our business successful.  President Trump’s tax cuts will provide the funds to make this desire a reality.  We hope that other business will follow our lead and give back to their employees as well.

Perkins shared that each of The Hammock Source’s employees, including new hires and part time employees, will receive a bonus based on their length of service to the company. The company employs approximately 150 people with over ten percent having twenty or more years tenure with the Perkins Family’s Business." - Jan. 25 2018, Casual Living article excerpt

D3 Development (Durham, North Carolina) -- The company is constructing an apartment building with multiple restaurants in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Work is underway on a development to transform a desolate, decrepit former textile mill into a residential showplace and turn a sleepy small town into a popular destination.

Mike Hill, CEO of D3 Development, told Triad Business Journal that the tricky financing process was finalized last month. Crews are busy in the early stages of creating 176 apartments and two restaurant spaces at Granite Mill, 122 E. Main St. in Haw River.

Hill said other financing will come from a U.S. Housing and Urban Development construction and permanent loan; federal historic tax credits; state of North Carolina mill credits; and a tax credit bridge loan. The project is also eligible for federal Opportunity Zone tax benefits.

Hill said much of his upcoming focus will be on finding tenants for the 15,000 square feet of restaurant space along East Main Street.

"The restaurants are important," Hill said, acknowledging the need for attractions for residents and foundations to spur further development in the area. "I have to get going on it." -- April 18, 2019 Triad Business Journal article

Grubb Properties (Chapel Hill, North Carolina) -- The company is renovating an office building located within an Opportunity Zone created by the Tax Cuts and Jobs Act:

With plans to take advantage of a new federal tax program, Charlotte-based Grubb Properties has acquired one of the largest office buildings on Chapel Hill's Franklin Street and is eyeing a major renovation for the aging office tower.

Grubb bought the 137 E. Franklin St. building and its corresponding parking deck on Rosemary Street for $23.5 million earlier this month, according to county records. The building, which dates back to the 1970s, last sold in 2014 for around $26 million, according to records.

It marks the second major investment the Charlotte-based developer has made in Chapel Hill recently. On the other side of town, the company is currently building a new office building at the Glen Lennox apartments, a housing community that the company has owned for several decades.

Clark Spencer, a senior vice president for investments at Grubb, said the company was attracted to the building because of its location within a federally-designated "opportunity zone" that stretches from East Franklin Street to Estes Drive.

Grubb is currently in the process of raising $200 million for investments in opportunity zones and has plans for an investment in downtown Winston-Salem already.

The [Opportunity Zone] designation was created during the Republican tax overhaul in 2017 and it created nearly 9,000 zones across the country. Investors stand to get deferrals on capital-gains taxes and other taxes if they hold investments in opportunity zones for at least 10 years.

Over the next two years, Grubb plans to pour tens of millions of dollars into renovating the building, completely re-doing most of the glass facade on the backside of the building and updating the office layouts within it to a more modern configuration.

"We are working on various avenues of leasing (the building) back up and talking to a number of organizations," Spencer said. "We are looking at certainly some new corporate tenants. And we would love to get a co-working tenant in there. That could be really beneficial for the town and the university."

Matt Gladdek, the executive director of the Downtown Chapel Hill Partnership, said more updated office and co-working space is sorely needed in downtown Chapel Hill, especially for young startups and companies that spin out of the university's research arms.

"What this really represents is an opportunity for new partnerships in that building and for businesses that need access to the university for research and innovation," Gladdek said in a phone interview.

It could also be a boon for many local businesses on Franklin Street that have to navigate the summer months when there are fewer students in town to shop and eat.

"Creating a secondary use outside of the university that is constant is going to be really important so that our businesses can deal with the boom-bust cycle." -- April 26, 2019 News & Observer article

Holliday Fenoglio Fowler (Charlotte, North Carolina) -- The company announced a mixed-use building in Charlotte that will be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Holliday Fenoglio Fowler, L.P. (HFF) announces that it has arranged $22.639 million in financing for General Assembly, a 124,000-square-foot, mixed-use, adaptive-reuse project in Charlotte, North Carolina.

HFF worked on behalf of the borrower, Artesia Real Estate, to secure the five-year, floating-rate bridge loan through Ready Capital National Bridge Team. Loan proceeds are being used to refinance the acquisition loan and provide capital for property improvements.

General Assembly is a redevelopment of the longtime home of the City North Business Center, which was originally built in the 1930's. Due for completion in fourth quarter of 2020, the project will utilize state-of-the-art new construction alongside vintage architecture and will encompass 100,000 square feet of Class A, collaborative creative office space and 24,000 square feet of retail and brewery space. General Assembly is located on 8.1 acres along North Tryon in the heart of the rapidly growing NoDa/North End submarket and Applied Innovation Corridor of Charlotte, which has been established as an Opportunity Zone and Catalyst site. The property benefits from its proximity to Uptown Charlotte, multiple breweries and restaurants, the Blue Line extension and adaptive re-use projects such as Camp North End. In addition, the mixed-use project is just one mile from Interstate 277, which connects to Interstate 77, the major corridor bisecting Charlotte. -- May 30, 2019 press release

URS Capital Partners (Charlotte, North Carolina) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

URS has been active in the last year or so. The company sold three apartment communities in Georgia and one in Cincinnati for a combined $67.8 million. The first building in its 256-unit Latitude South Portland rental complex in Portland, Maine is slated to open in September. URS bought the 7.19-acre site, located in an Opportunity Zone, for $8 million and began construction on the $45 million project last spring. -- May 1, 2020 Long Island Business News article

Stratifyd (Charlotte, North Carolina) -- The data analytics firm will be moving to an Opportunity Zone created by the Tax Cuts and Jobs Act:

Charlotte-based data analytics firm Stratifyd said Thursday morning it will add 200 jobs here as part of a $3.25 million local investment and move to west Charlotte.

The company, which today employs about 100, will move its headquarters from The Foundry building in uptown to 2101 Thrift Road, part of the former Baker-Mitchell Co. property west of uptown Charlotte. Stratifyd CEO Derek Wang, a former UNC Charlotte professor, said the new jobs will primarily be in tech, including engineering positions and marketing services

....

The area west of Charlotte — which has been called a range of names, including FreeMoreWest and the Freight District — has seen a recent surge of commercial real estate activity. Another Charlotte-headquartered company, Wray Ward, is moving its 100-plus employees into 38,000 square feet at 2317 Thrift Road. Local coworking group Hygge Coworking Co. has a 20,000-square-foot office on Jay Street. And a number of breweries, restaurants and other retail outlets are also moving in, including two concepts by restaurateur Jim Noble, breweries and a "seltzery."

Thrift Road, like much of west Charlotte, is part of an opportunity zone, a federal tax incentive for real estate or business investment in low-income census tracts certified by the U.S. government. -- October 31, 2019 Charlotte Business Journal article

Tis The Season (West Jefferson, North Carolina) – $1,000 bonuses for full-time employees:

Luther Pitts, owner of Tis The Season, gave his full time employees a big bonus for the holiday season.

Pitts, a resident of Jefferson, gave his two full-time employees $1,000 bonuses in addition to their Christmas bonuses due to the recent tax cuts passed by the United States Congress.

“I like what the president is doing and I’ve done well for myself. Everything I do here is to try and help the county,” Pitts said. “I was trying to inspire other business owners to do something nice for their employees. It may not be $1,000, but something to help the people because the county needs it.”

Pitts said the passage of the tax cuts made his bonuses possible. – Jan. 3, 2018 Ashe Post and Times article excerpt

Reynolds American, Inc. (Winston-Salem, North Carolina) -- $1,000 bonuses for 4,500 employees:

Reynolds American Inc. said Wednesday that most of its 5,500 employees will benefit from a one-time $1,000 bonus related to the federal corporate tax rate cut.

--

Reynolds spokesman David Howard said the bonus will be paid to “all regular, full-time hourly and salaried employees of RAI and its subsidiaries, up to and including the level of senior manager.”

This amounts to 4,500 employees. He said the bonus would be paid Friday.

Reynolds has, at last count, between 2,000 to 2,200 employees in Forsyth County, the majority of whom work at the Tobaccoville plant.

“RAI and its operating companies applaud Congress and the president for bringing corporate income tax reform to a reality, and are using this opportunity to show appreciation to their hard-working employees,” Howard said.

BAT also said Feb. 27 that it would dedicate much of the financial benefit from the tax-rate cut to assist in accelerating the pace of making and distributing innovative products, primarily heat-not-burn traditional cigarettes and electronic cigarettes.

Nicandro Durante, chief executive of BAT, said tax-rate cut savings will help BAT pay for “a huge investment to allow us to roll out to at least 40 markets tobacco for heated products, and several others for vaping, in 2018.”

Currently, BAT’s heat-not-burn cigarette named glo is in five international markets — Canada, Japan, Russia, South Korea and Switzerland.

Durante has said BAT’s preference is to make products in or near the markets in which they are sold.

That could lead to a significant boost to the Tobaccoville plant workforce if BAT can gain U.S. Food and Drug Administration approval to bring in some additional traditional cigarettes and innovative products, such as glo. -- March 7, 2018 Winston-Salem Journal article excerpt

Old Dominion Freight Line Inc. (Thomasville, North Carolina) – $500 bonuses for all 22,000 employees:

“I am excited to share a bit of good holiday cheer with you today. The President has signed a historic tax reform bill that should reduce OD’s taxes and also generate growth for the U.S. economy. We expect that the anticipated improvement in the economy will create additional opportunities for use to WIN market share and grow our Company more than originally anticipated. As we have said many times before,  however, our ability to successfully grow the Company is centered on each member of  the OD Family performing at his or her very best to deliver SUPERIOR SERVICE to our customers!

 As a way of saying THANK YOU for continuing to deliver best-in-class service, and to    share part of our anticipated 2017 tax savings with you, a one-time bonus payment for      non-executives will be included in your paycheck this week.” – Old Dominion CEO David Congdon

Bank of America (Charlotte, North Carolina) -- $1,000 bonuses:

“Beginning in 2018, we will see benefits from the tax reform, too, in the form of lower corporate tax rates.

In the spirit of shared success, we intend to pass some of those benefits along immediately. U.S. employees making up to $150,000 per year in total compensation – about 145,000 teammates – will receive a one-time bonus of $1,000 by year-end.” – CEO Brian Moynihan

 

IAT Insurance Group (Raleigh, North Carolina) -- $3,000 bonuses for 685 non-executive employees:

 IAT Insurance Group ownership and management announced today the company will pay

a $3,000 bonus to all non-executive employees on January 15, 2018.  The additional bonus comes in response to the newly passed tax reform bill – the tax savings will be shared with approximately 700 employees. IAT Insurance Group is a privately held company owned by the Kellogg family. – Dec. 21 2017, IAT Insurance Group press release

Blue Cross and Blue Shield of North Carolina (Durham, North Carolina) – $1,000 bonuses to approximately 4,700 employees; $40 million in charitable contributions:

North Carolina's largest health insurer said Thursday its windfall from the new federal tax cut will hold down rate increases in the future, but this year it will use it to give charities $40 million and pay employees a $1,000 bonus.

Blue Cross and Blue Shield of North Carolina said it will give away millions this year for health initiatives and give bonuses to about 4,700 employees.”  — Feb. 22 2018, Winston-Salem Journal article excerpt  

RDR Inc. (branch office in Southern Pines, North Carolina) – bonuses of up to $1,000 for all 125 employees:

RDR, Inc. A professional services firm headquartered in Centreville, Virginia with a Branch office in Southern Pines, North Carolina and individual employees nationwide is announcing that it will be paying bonuses to each of its 125 employees as a result of anticipated 2018 tax savings from the recently passed Tax Cuts and Jobs act of 2017.

It has been said that all U.S. workers would see financial benefits in February from the tax cuts that passed in December and we are determined to make this true for all our employees right now! – Jan. 19 2018,  RDR, Inc. press release excerpts

Ally Financial Inc. (Charlotte, North Carolina) -- $1,000 bonuses:

The company plans to use some of the tax savings to pay a $1,000 bonus to its employees, and to increase its charitable contributions by around $6 million. – Jan. 30, 2018 American Banker article excerpt

Duke Energy Carolinas (Charlotte, North Carolina) – The utilities are passing along tax savings to customers:

Duke Energy today outlined its proposal to pass along savings from the new federal tax law to its North Carolina customers in ways that will lower bills in the near term and help offset increases in the future.

Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) offered the proposal in a filing with the North Carolina Utilities Commission (NCUC) today. Duke Energy has maintained customers' rates significantly below the national average for many decades while providing safe, reliable and increasingly clean energy for North Carolinians.

"This is a unique opportunity that allows us to reduce customer bills in the short term while also helping to offset future rate increases," said David Fountain, Duke Energy's North Carolina president. "With a balanced approach, our customers can benefit from a reduction in the corporate income tax rate, while we continue to make smart investments on behalf of our customers." – Feb. 1, 2018 Duke Energy press release

Duke Energy Progress (Charlotte, North Carolina) – The utilities are passing along tax savings to customers:

Duke Energy today outlined its proposal to pass along savings from the new federal tax law to its North Carolina customers in ways that will lower bills in the near term and help offset increases in the future.

Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) offered the proposal in a filing with the North Carolina Utilities Commission (NCUC) today. Duke Energy has maintained customers' rates significantly below the national average for many decades while providing safe, reliable and increasingly clean energy for North Carolinians.

"This is a unique opportunity that allows us to reduce customer bills in the short term while also helping to offset future rate increases," said David Fountain, Duke Energy's North Carolina president. "With a balanced approach, our customers can benefit from a reduction in the corporate income tax rate, while we continue to make smart investments on behalf of our customers." – Feb. 1, 2018 Duke Energy press release

Apple (Apple stores in NC: Raleigh, Greensboro, Durham, Charlotte Northlake Mall, Charlotte SouthPark) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

AT&T -- $1,000 bonuses for 6,179 North Carolina 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

Cintas Corporation (Multiple locations in North Carolina) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

Chipotle Mexican Grill (Multiple locations in North Carolina) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.

Comcast (Multiple locations in North Carolina) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.

Fifth Third Bancorp (55 locations in North Carolina) – $1,000 bonuses; base wage will rise to $15.

Home Depot -- 40 locations in North Carolina, bonuses for all hourly employees, up to $1,000

Lowe's -- In NC alone, 24,000 employees at 112 stores and seven distribution centers -- Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Lowe’s will follow rival Home Depot in giving thousands of its hourly employees a one-time bonus of up to $1,000 due to new tax legislation, according to an internal company memo reviewed by CNBC on Wednesday.

The bonuses will be based on an employee's length of service with Lowe's, and more than 260,000 part- and full-time individuals are set to receive the payouts, the company said. Lowe's declined to comment on how the bonuses would be broken out based on tenure.

Effective May 1, Lowe's will also be expanding its benefits package for full-time workers to include paid maternity leave for 10 weeks, paid parental leave for two weeks, adoption assistance of up to $5,000, and faster eligibility for health benefits, the memo said.

"We'll continue to make investments to improve the employee and customer experience," Lowe's wrote to its workers.

The company said it will provide more details on those investments in the coming weeks. Lowe's is set to report fourth-quarter earnings Feb. 28
. – Jan. 31, 2018 CNBC article excerpt

Ryder (Twenty-two locations in North Carolina) – Tax reform bonuses.

Starbucks Coffee Company (Multiple locations in North Carolina) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

U-Haul (Multiple locations in North Carolina) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Wal-Mart – 194 locations in North CarolinaWalmart employees are receiving tax reform bonuses of up to $1,000; Nationally, base wage increase for all hourly employees to $11; expanded maternity and parental leave; $5,000 for adoption expenses.

Wells Fargo – 293 locations in North Carolina; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over next three years.

Note: If you know of other North Carolina examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

 

 

More from Americans for Tax Reform


How the Republican Tax Cuts Are Helping New Jersey

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Wednesday, June 30th, 2021, 6:00 AM PERMALINK

New York is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:

New Jersey Families See Increased Tax Simplification and Tax Reduction. Americans at every income level have seen significant tax reduction. 90 percent of families and individuals are seeing increased take-home pay across the country. There are numerous reforms in the bill that benefit taxpayers in New Jersey and across the country:

  • The Tax Cuts and Jobs Act doubled the child tax credit from $1,000 to $2,000 per child. 563,170 New Jersey families took the Child Tax Credit in 2015.
  • The Tax Cuts and Jobs Act doubled the standard deduction for an individual from $6,000 to $12,000 and for a family from $12,000 to $24,000. 2,574,770 New Jersey families and individuals took the standard deduction in 2015.
  • The Tax Cuts and Jobs Act raised the threshold of the Alternative Minimum Tax so fewer taxpayers are forced to comply with the provision. 279,740 New Jersey families paid the Alternative Minimum Tax in 2015. 
     

New Jersey Middle Class Families See Increased Take-Home Pay. In 2018, New Jersey taxpayers will see average tax reduction of $1,490 and around 6 in 10 New Jersey taxpayers see an average federal tax cut of $2,740.    

  • 90 percent of New Jersey taxpayers with annual income of between $48,300 and $77,300 will see an average federal tax cut of $930 in 2018.
  • 84 percent of New Jersey taxpayers with annual income between $77,300 and $135,800 will see an average federal tax cut of $1,390 in 2018.
  • 80 percent of New Jersey taxpayers with annual income between $135,800 and $314,500 will see an average federal tax cut of $3,070 in 2018.    
     

New Jersey Families See Relief From the Individual Mandate Tax Penalty. Obamacare imposed a tax penalty of $695 for an individual and $2,085 for a family of four for failing to buy “qualifying” health insurance as defined by the federal government. The Tax Cuts and Jobs Act repeals this unfair tax.

The individual mandate tax penalty is one of the most regressive taxes in the code as it disproportionately impacts low and middle-income families:

  • 188,570 New Jersey individuals and families paid a total of $93,342,000 in individual mandate tax penalties in 2015. 
  • 37.56 percent of New Jersey taxpayers (70,830 households) that paid the individual mandate made less than $25,000 in annual income.
  • 77.91 percent of New Jersey taxpayers (146,910 households) that paid the individual mandate made less than $50,000 in annual income.
     

Tax Reform Benefits Businesses and Workers in New Jersey. The Tax Cuts and Jobs Act reduced the federal corporate tax rate to 21 percent and established a 20 percent small business deduction. Businesses across the state have responded by announcing pay raises, bonuses, 401(k) match increases, and expansions. For example:

  • Tingley Rubber Corporation – based in Piscataway, New Jersey - announced one-time bonuses of $1,000 because of the recent tax reform passed by Congress. 
  • Quest Diagnostics Incorporated – based in Secaucus, New Jersey – has announced bonuses of up to $500 for 40,000 employees. 
  • Amicus Therapeutics – based in Cranbury, New Jersey – will build a $200 million facility in the U.S. instead of Europe because of tax reform. The factory will produce a new drug designed to treat Pompe, a rare, fatal disease. The facility will employ at least 200 people with an average salary of $100,000. 
  • Lowe’s – (5,000 employees at 39 stores and two distribution centers in New Jersey). Employees will receive bonuses of up to $1,000 based on length of service, expanded benefits and maternity/parental leave, and $5,000 of adoption assistance. 
  • Amboy Bank – based in Old Bridge, New Jersey – is increasing its employee base wage to $15 per hour and giving $1,000 bonuses for non-executive employees. 
     

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, New Jersey 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 fourteen New Jersey utilities reduced their customers' bills (see below).

New Jersey companies of all sizes give powerful testimonials to the power of tax reform:

Metallix (Shrewsbury, New Jersey) - Employee bonuses, investing in business growth:

First order of business? Giving each of Metallix’s 98 workers a $1,000 bonus, an unexpected surprise that came just days after tax reform took effect.

“From the outset, the company wanted to share the benefits of tax reform with our employees,” said Maria Piastre, president of Metallix. “On February 14, every employee received a net $1,000 after-tax bonus in response to tax reform. Coming so soon after our usual end-of-year bonuses, it was completely unexpected by Metallix employees, and we were all very happy to receive it.”

Metallix wasn’t shy about tying these bonuses directly to tax reform. Each employee also received a letter from Metallix owner Eric Leiner, who explained that tax reform was going to mean a big boost to the company—and that he wanted to make sure employees were receiving their share of the good fortune. Metallix employees clearly took this sentiment to heart.

Piastre said that, months after the bonuses were given out, many employees still had Leiner’s letter hung proudly at their desks.

Piastre also explained that Metallix was using some of the benefits of tax reform to grow their business—and that significant investments were now more feasible because the company’s taxes had been so substantially lowered. - August 2, 2018, National Association of Manufacturers article excerpt

Honeywell (Morris Plains, New Jersey) – increased 401(k) match:

“I am confident in Honeywell’s future, and our ability to continue to deliver for our shareowners and our employees. Our strong performance in 2017, together with the enactment of new U.S. tax legislation, has enabled us to increase our 401(k) match in the U.S. This is a sustained, annual benefit that will provide a more secure retirement for our employees. We believe that enhancing this benefit is extremely valuable and important to our employees over the long term,” Adamczyk concluded.—Jan. 26 2018, Honeywell press release

Flemington Car & Truck Family of Brands (Flemington, New Jersey) -- $500 employee bonuses:

The new tax reform law is giving some benefits to New Jerseyans. The Flemington Car and Truck Country Family of Brands, a new and used car dealership in Flemington, is awarding each of its full-time employees a $500 bonus because of the recently passed federal Tax Cuts and Jobs Act.

As a result of the corporate tax rate cut under the new law to 21 percent from 35 percent, the company will also look to upgrade its facility and hire additional workers. The dealership is 41 years old and has 17 brands in eight different locations.

“We believe this is the right thing to do,” said company chairman Steve Kalafer, in a written statement. “Reinvesting tax savings in our employees and our businesses will make our communities and America stronger. We call on all of the auto manufacturers we work with to help drive economic growth by giving back to the communities where they employ and invest with appropriate employee bonuses and by creating new jobs with their new capacity for additional capital expenditures.” – Jan. 8, 2018 NJ Biz article excerpt

Quest Diagnostics Incorporated (Secaucus, New Jersey) -- Bonuses of up to $500 for 40,000 employees:

Tax Reform Benefit

In 2018 the company expects to realize approximately $180 million in tax savings on an adjusted basis. Of this amount, the company plans to reinvest roughly $75 million before tax back into the business and its employees, resulting in a benefit of approximately $120 million to net earnings.  Investment initiatives include:

-Advanced diagnostics innovation through new tests and high-touch concierge services;

-Investments to deliver a consistently excellent consumer experience both online through the MyQuest mobile patient application and patient service centers; and 

-A bonus of up to $500 for nearly 40,000 employees to be paid based on the company's performance in 2018. -- Feb. 1 2018, Quest Diagnostics Incorporated press release

Merck (Kenilworth, New Jersey) -- Bonuses (details to be announced); increased charitable donations; increased capital expenditures:

“The recently enacted U.S. tax legislation improves Merck’s financial flexibility to invest in sustainable long-term value creating opportunities. In addition to the company’s ongoing investment in R&D, business development and continued support of the dividend, as well as share repurchases, the company also:

  • Plans to invest approximately $12 billion over 5 years in capital projects including approximately $8 billion in the United States
  • Made a contribution to the Merck Foundation in the fourth quarter of 2017
  • Plans to provide a one-time, long-term incentive award for its eligible non-executive employees in the second quarter of 2018” – Feb. 2 2018, Merck press release
     

Tingley Rubber Company (Piscataway, New Jersey) -- $1,000 bonuses:

New Jersey based Tingley Rubber Corporation will be issuing all U.S. based employees one-time bonuses of $1,000 because of the recent tax reform passed by Congress.

Tingley’s ownership announced Thursday its plans to share some of the tax benefit directly with their employees to express the company's gratitude. The 122-year-old, fifth generation family owned business joins many businesses across the country in giving employee bonuses after Congress passed a sweeping tax cut for businesses and individuals.

President Donald Trump signed a bill on December 22nd overhauling the nation's tax code. One of the biggest changes included in the bill cuts the corporate tax rate from 35 percent to 21 percent for qualifying corporations. The bill also restructures and lowers the seven personal income tax brackets.

Based in Piscataway, NJ the privately held Tingley Rubber Corporation announced the bonuses during an employee luncheon held on March 22nd. The $1,000 bonuses will also be eligible for the company’s 401(k) plan deferral with the standard corporate match.

"The economic development that should come as a direct result of the new tax reform legislation and deregulations will positively affect Tingley’s ability to grow its business.  The tax reform package will allow Tingley to invest more into our strategic initiatives, and better serve our customers, as well as our employees and shareholders," said Owner and Chairman of the Board, Bruce McCollum.  Bruce’s son and owner JB McCollum said "We are excited for the opportunity to reward our dedicated and hard-working employees with this special bonus as a token of our gratitude."

President & COO, Mike Zedalis, expressed his gratitude to the McCollum family and sees the new tax plan as a major boost to Tingley: “Our company continues to grow, and enhanced investment into our operations will always bring benefits to our customers, employees and shareholders.” 

Tingley Rubber Corporation is a leading supplier of protective footwear and clothing and has been protecting generations of workers since 1896. -- March 26, 2018 Tingley Rubber Corporation press release

Atlantic City Electric (Atlantic City, New Jersey) - The utility will pass along tax cut savings to customers:

Atlantic City Electric will provide $23 million in annual tax savings to its customers. The company made a filing this month with the New Jersey Board of Public Utilities, which was approved on March 26, 2018. Customers will begin to see reductions on their bills around April 1, 2018. - April 3, 2018, Exelon Utilities press release excerpt

Public Service Enterprise Group (Newark, New Jersey) – The utility will pass along tax reform savings to customers:
 

Public Service Electric and Gas Co. (PSE&G) today proposed to lower customer bills by approximately 2 percent on April 1 to pass on the benefits of the federal tax reform legislation enacted earlier this year.

In its filing with the NJ Board of Public Utilities, PSE&G will reduce rates by approximately $114 million on an annual basis effective April 1 to reflect lower federal taxes the utility will pay. The typical residential combined electric and gas customer will save nearly $41 per year.  – March 2, 2018, PSE&G Press Release

New Jersey American Water (Camden, New Jersey) – The utility will pass along tax reform savings to customers:

The New Jersey Board of Public Utilities (BPU) today approved changes to New Jersey American Water’s base water and wastewater rates.  The BPU also approved a credit resulting in the pass-back to customers over the next 10 months of $32.5 million in excess accumulated deferred income taxes associated with the Tax Cuts and Jobs Act.  For the average residential customer, the base rate increase of $39 million annually will be offset by the credit through August 31, 2021 - October 28, 2020 American Water press release

New Jersey Natural Gas (Wall Township, New Jersey) – The utility will pass along tax reform savings to customers:

New Jersey Natural Gas (NJNG), a regulated subsidiary of New Jersey Resources (NYSE: NJR), today submitted a filing to the New Jersey Board of Public Utilities (BPU) to pass through the benefits of the recently enacted federal tax reform to customers. NJNG announced it will reduce customers’ rates by $21 million, effective April 1, 2018, resulting in a $31, or 3 percent, decrease to a typical residential heating customer’s annual bill.

NJNG also announced it will provide a one-time refund to customers totaling approximately $31 million. The estimated refund for a typical residential heat customer is $47. The actual refund amounts will be determined in May and reflect individual customer usage. Pending BPU approval, customers can expect to see these savings in their May or June bills.

For the rate decrease, a typical residential heating customer using 1,000 therms a year will see their annual bill go from $1,054 to $1,023, a savings of $31. When combined with the one-time refund, the customer will see an overall reduction of $78 or 7.4 percent this year. This adjustment will help ensure rates reflect the lower tax structure and any appropriate savings are passed on to customers.

“Our top priority is to ensure we deliver safe, reliable and affordable service to our customers, said Laurence M. Downes, chairman and CEO of New Jersey Resources. “We are pleased to pass along the benefits of tax reform to our customers through lower energy bills.” - March 2, 2018 New Jersey Resources press release excerpt

Rockland Electric Company (Pearl River, New York) – The utility will pass along tax reform savings to customers:

On March 2, 2018, the Company filed its petition pursuant to the Generic TCJA Order, including proposed tariffs as well as a proposed plan. Specifically, RECO's petition stated that the 2017  TCJA would result in an annual revenue requirement reduction for the Company of approximately $2.868 million, as of April 1, 2018. The Company decreased its net deferred tax liabilities by $45 million, decreased its regulatory asset of future income tax by $17.million and accrued a regulatory liability for future income tax of $28 million. REGO calculated its new interim rates effective April 1, 2018 using billing determinants underlying the distribution rates established in RECO's 2016 Base Rate Case. The Company calculated the current level of revenue based on the currently effective rates and allocated the distribution decrease among the service classifications in proportion to the relative contribution made by each class to the total current level of revenue. 

The Company proposed to return to ratepayers the amounts deferred pursuant to the Generic TCJA Order for the period of January 1, 2018 until the effective date of the Company's new rates, by means of a sur-credit. The Company proposed to employ a short-term borrowing rate to accrue interest on the deferred amounts until the Company's returns such amount to ratepayers. The Company would return this total deferral amount over twelve (12) consecutive calendar months, commencing with the month immediately following when the Board issues an order approving the Company's new rate. The sur-credit would be applied to all service classifications on an equal per kWh basis for the twelve (12) month period. According to the petition, the Company's final effective rates reflect the proposed refund of the full amount of the excess accumulated deferred federal income tax liability to ratepayers. - June 22, 2018 New Jersey Board of Public Utilities document

Atlantic City Sewerage Company (Atlantic City, New Jersey) – The utility will pass along tax reform savings to customers:

The Update noted that effective April 1, 2018, ACSC implemented a rate decrease, to reflect the fact that the tax expense reflected in ACSC's rates had been calculated at the statutory 34% rate. The new rates, made effective April 1, 2018, were based upon the new statutory rate of 21%. 

The Update noted that the April 1, 2018 rate reduction was based upon a reduction in income tax expense of $319,945.00. After applying ACSC's gross up factor, the rate decrease became an annual revenue reduction of $472,838.00. - February 27, 2019 New Jersey Board of Public Utilities document

SUEZ Water New Jersey, Inc. (Paramus, New Jersey) – The utility will pass along tax reform savings to customers:

On March 5, 2018, pursuant to the Generic Tax Order, SUEZ Water New Jersey, Inc., SUEZ Water Toms River, Inc. and SUEZ Water Arlington Hills, Inc. (collectively, "Joint Petitioners" or "Companies") filed a joint petition requesting Board approval to implement a reduction in base rates effective April 1, 2018, of $12.1 million for SUEZ Water New Jersey, Inc., $1.6 million for SUEZ Water Toms River, Inc. and $0.2 million for SUEZ Water Arlington Hills, Inc. 

On March 26, 2018, the Board issued an Order ("March 2018 Order") approving the implementation of the Joint Petitioners' proposed rate reduction on an interim basis, effective April 1, 2018. The proposed refund and other rider tariffs were deferred until a later date. - February 27, 2019 New Jersey Board of Public Utilities document

Middlesex Water Company (Iselin, New Jersey) – The utility will pass along tax reform savings to customers:

On March 26, 2018, the Board issued an Order Adopting Initial Decision/Settlement ("Middlesex Rate Case Order'') in BPU Docket No. WR17101049, Middlesex's most recent base rate case. 3 This Order adopted a Stipulation of Settlement ("Rate Case Stipulation") executed by Middlesex, the New Jersey Division of Rate Counsel and Board Staff ("Parties"). Under the Rate Case Stipulation, the Parties agreed that the Company included in the Rate Case Stipulation the effect on Middlesex's rates of both phases of the required calculations as set forth in the Board's Generic Tax Order.4 This included $500,000 for Phase Two adjustments accounted for as a result of an analysis performed by the Company and reviewed by the Parties. 5 The Parties further agreed in the Rate Case Stipulation to continue to review any calculations associated with the Company's Phase Two adjustments on an ongoing basis, and to resolve any issues if they were to arise. 6 In addition, the Company agreed that, in the event the Phase Two adjustment resulted in less than the $500,000 returned to customers with the Board's approval of the Rate Case Stipulation, no further adjustment will be made. - August 29, 2018 New Jersey Board of Public Utilities document

Gordon’s Corner Water Company (Marlboro, New Jersey) – The utility will pass along tax reform savings to customers:

The Parties stipulated and agreed that all issues and requirements set forth in the Generic Tax Order as applied to Gordon's Corner were resolved. 5 Consistent with the Rate CaseStipulation, Gordon's Corner's new rates to be set as a result of that case include a one-time $0.56 (i.e., a 56 cent) credit per customer, reflecting a stub period total credit due to customers of $8,394. This credit resolves both this matter with respect to Docket No. Ax:18010001 as well as all issues in the Gordon's Corner Rate Case, associated with both Phase One and Phase Two of the Generic Tax Order. The Board NOTES that Gordon's Corner has already complied with Phase One of the Generic Tax Order by lowering its volumetric rate from $5.15 to $5.04, or $154,676 on an annual basis, The Board FURTHER NOTES that the new base rates agreed to by the Rate Case Stipulation reflect a rate base adjustment of $137,421, which represents the Accelerated Deferred Income Tax owed to ratepayers pursuant to the 2017 Tax Cuts Act. - August 29, 2018 New Jersey Board of Public Utilities document

Jersey Central Power and Light Company (Holmdel, New Jersey) – The utility will pass along tax reform savings to customers:

On March 2, 2018, the Company filed a petition pursuant to the Generic TCJA Order, which included proposed tariffs as well as a proposed plan. According to the petition, JCP&L recalculated its base rates to incorporate the impact of the mandatory reduction in the federal corporate income tax ("FIT") rate from 35% percent to 21%, effective January 1, 2018 in accordance with the 2017 Act and the Generic TCJA Order. JCP&L's proposed methodology and quantifications of the effects of the 2017 Act included the following: (1) a reduction in the FIT rate which would result in a base rate reduction of $28.6 million annually for the Company; (2) a deferral, as a regulatory liability, of $6.3 million on its books, with interest, for the impact of the reduction in the FIT rate on its tax gross-up between January 1, 2018 and March 31, 2018; and (3) non-rate base (unprotected) Excess Deferred Income Taxes ("EDITs") of $90.89 million to be amortized over a ten-year period (levelized). - May 8, 2019 New Jersey Board of Public Utilities document

South Jersey Gas Company (Folsom, New Jersey) – The utility will pass along tax reform savings to customers:

On March 2, 2018, the Company filed its petition pursuant to the Generic TCJA Order, including proposed tariffs as well as a proposed plan. Specifically, SJG stated that it planned: (1) a reduction in base rates of $25.88 million effective April 1, 2018; (2) a corresponding estimated $12.88 million refund to customers for the period January 1, 2018 through March 31, 2018 for the corresponding rate adjustment (including interest at the Company's short-term debt rate and (3) are-measurement and adjustment to rates related tci the "Unprotected" excess deferred income taxes of approximately $27.1 million associated with the implementation of the 2017 Act. - September 17, 2018 New Jersey Board of Public Utilities document

Elizabethtown Gas (Union, New Jersey) – The utility will pass along tax reform savings to customers:

On March 2, 2018, the Company filed its petition pursuant to the Generic TCJA Order, including proposed tariffs as w~II as a proposed plan. Specifically, ETG requested an annual reduction in firm distribution revenues of $10,938,818, effective April 1, 2018, which represents a 6.6% decrease. The Company also requested authorization to refund to customers for the difference between the effective April 1, 2018 rate and charges for January 1, 2018 through March 31, 2018, which was estimated to be $5.6 million. The Company proposed to refund the $5.6 million in a billing cycle during or before September 2018. Alternatively, the Company proposed to provide the refunds in May 2018 by filing a true-up after final rate approval by the Board. ETG proposed that the one-time refund would include interest at the Company's short-term debt rate as specified in the Company's last base rate case3 and· New Jersey Sales and Use Tax. ETG's calculations include an adjustment to eliminate all Investment tax credits for the revenue requirements. The Company's revenue factor will be reduced to 1.40828098. Additionally, the Company will use the Average Rate Assumption Method ("ARAM") to amortize the protected excess deferred tax liability and proposed to amortize the unprotected potions of the excess • over five (5) years. ETG's rate base includes an offset for deferred taxes, a portion of which will be used to provide customers an ongoing carrying cost benefit to the pre-tax weighted average cost of capital. To accomplish the rate reduction, the Company proposed to only reduce the distribution charges of its firm service classification and leave the monthly service charges untouched. The Weather Normalization Clause Margin Revenue Factor would be adjusted, effective January 1, 2018, to realize the full benefit of the 2017 Tax Act. - June 22, 2018 New Jersey Board of Public Utilities document

Aqua New Jersey (Hamilton Township, New Jersey) – The utility will pass along tax reform savings to customers:

On March 2, 2018, the Company filed its petition pursuant to the January 31, 2018 Generic TCJA Order, including proposed tariffs as well as a proposed plan. The Company's filing and proposed tariffs did not include an across-the-board rate reduction reflecting the reduction in the corporate tax rate from thirty-five percent (35%) to twenty-one (21 %). Therefore, Aqua refiled its petition ("Tax Rate Adjustment Filing") which reflected the reduction in the corporate tax rate from thirty-five percent (35%) to twenty-one percent (21%) on March 19, 2018.
---
The Company represented that this rate change and one-time refund results in an overall rate decrease of approximately 6.8% to the average residential water customer using 5,000 gallons of water per month. - July 25, 2018 New Jersey Board of Public Utilities document

New Jersey-American Water Company (Camden, New Jersey) – The utility will pass along tax reform savings to customers:

The Signatory Parties have reviewed the Company's filing, exchanged discovery, filed comments and reply comments, and reached a resolution with regard to the disposition of the stub period amount and the difference between the originally implemented rate decrease of 5.88% and the agreed upon rate decrease of 6.12%. The resulting Partial Stipulation will result in NJAW issuing the agreed upon one-time credit to its customers. - July 10, 2019 New Jersey Board of Public Utilities document

Carneys Point Township (Carneys Point, New Jersey) -- The township is building a warehouse in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A 1.284 million square foot warehouse complex is coming to Carneys Point Township. The deal, signed at the end of March, will be one of the many projects on tap for the Salem County town. Although the tenant utilizing the warehouse has not been finalized, the warehouse is expected to create as many as 500 jobs.

The rural town of 7,100 is located in the state's least populated county, which struggles with high unemployment figures (6.3% in February compared to the state's average of 4.7%) and low household income of about $52,800 on average.

The warehouse will be close to the McLane Distribution Center, a Wawa fulfillment center located on the westbound side of Route 40 that has already expanded multiple times. Plans include installing a traffic light at Courses Landing Road at Route 40, an intersection that's been a problem area for years, according to Carneys Point Township Mayor Ken Brown

"What really makes me happy is everybody in our government in our township worked together on this project," said Brown. "From our codes people to our committee people, to our office personnel, to

our attorneys, and everybody else with one focus: To get this job done and bring jobs to our town."

New Jersey-based Arbok Partners and Panattoni Development Company will build the warehouse. Both companies and the partnership specialize in industrial development.

Bo Farkas, who oversees all acquisition and development opportunities for Arbok Partners, said searching for potential areas for development is like trying to find "diamonds in the rough." Carneys Point fit the bill for the warehouse project. The area is minutes from the New Jersey Turnpike, close to the last exit before heading over the Delaware Memorial Bridge.

"One of the things that New Jersey has a shortage of are big box distribution buildings, especially those in the one million square feet size range. That was the main impetus for seeking out larger sites like the one in Carneys Point."

Carneys Point is one of two Salem County municipalities designated as an opportunity zone, an initiative the state says tries to bring more development and economic opportunities to urban and rural areas. -- April 7, 2019 South Jersey Times article

Amicus Therapeutics (Cranbury, New Jersey) – In order to find a cure for a rare disease, the company is building a $200 million facility in the United States instead of overseas. The facility will employ at least 200 people who will earn an average of over $100,000 per year:

Specialty drugmaker Amicus Therapeutics, Inc. has decided to spend as much as $200 million on a new production facility in the U.S. instead of Europe.

--

At Amicus Therapeutics, the new tax law solved a geographic dilemma. The Cranbury, N.J., company is developing an experimental drug to treat Pompe disease, a rare inherited disorder that causes muscle weakness and can be fatal.

After early results for a new drug proved promising, Amicus wanted to increase production for further clinical testing and potential commercial sales.

Amicus, which has been using Chinese contract manufacturer WuXi Biologics to supply the drug, decided in August to build its own facility. The U.S. was at a disadvantage to Europe, due to its 35% statutory federal income-tax rate for companies. Ireland’s corporate tax rate, by contrast, is 12.5%.

Those financial considerations threatened to overshadow other advantages that a U.S. plant would offer, including the ease with which company officials could visit it, and the availability of talented workers in some regions.

“Our strong assumption was that it would be very challenging to establish a new bio-manufacturing facility in the U.S.,” Chief Executive John Crowley said in an interview.

As the tax legislation advanced in Congress last fall, however, building in the U.S. began to look more attractive. On Dec. 21, a day after Congress passed the final measure, which lowered the statutory corporate rate to 21%, Mr. Crowley recommended to his board the company focus on finding a U.S. site. The company has narrowed its choice to three East Coast cities Mr. Crowley declined to identify, and expects to decide in the next month or two. It expects the plant to cost $150 million to $200 million, and to employ at least 200 people at an average pay of $100,000 a year.

“With the changes in the tax law, it now makes the U.S. competitive with these geographies we’re looking at,” he said. – Jan. 26, 2018 Wall Street Journal article excerpt

Somerset Savings Bank (Bound Brook, New Jersey) -- $750 bonuses for employees excluding senior management:

Somerset Savings Bank announced today that, following the enactment of the new federal tax reform legislation, it will distribute a special cash bonus to its employees.  Every employee, excluding senior management, will receive a one-time $750 bonus. – Jan. 23, 2018 Somerset Savings Bank press release

OceanFirst Financial Corp. (Toms River, New Jersey) – base wage increase to $15 per hour:

OceanFirst Financial Corp. (NASDAQ:OCFC) the holding company for OceanFirst Bank, today announced a commitment to increase the Bank's minimum hourly pay rate to $15.00 within 30 days of the enactment of the Tax Cuts and Jobs Act which has been approved by Congress and is expected to be signed into law in the near future." -- Dec. 22, 2017 OceanFirst Financial Corp. press release

Invertase Brewing Co. (Phillipsburg, New Jersey) -- A brewery is being built in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A piece of paper taped to the door blocks the view inside. "No peeking!!" it says. There are smiley faces inside the O and under the two exclamation points.

Inside is where Stephen and Karen Zolnay are hard at work turning a family hobby of 15 years into a business.

When finished, Invertase Brewing Co. will be one of just a handful of breweries in northwest New Jersey, and the only one in Phillipsburg. Breweries are more plentiful just across the Delaware River in Easton, a community from which the Zolnays hope to draw support.

...

What's more, they said, the site is at a crucial intersection for Route 22 motorists getting to and from the free bridge and falls within an federal opportunity zone, giving them some economic incentive as well. -- July 21, 2019 Hunterdon County Democrat article

JLL Capital Markets (Jersey City, New Jersey) -- The company is investing in a brand new apartment complex, which will create new jobs:

"JLL Capital Markets has arranged a $20.5 million loan for an investment fund that’s buying a Jersey City apartment complex, NJBIZ reported. Borrower Normandy Opportunity Zone Fund, which is managed by Columbia Property Trust, plans to use the financing to purchase the 93-unit, six-story building known as The Ashton, which is in an opportunity zone. The building houses 62 parking spots, according to the outlet. Rialto Capital Management provided the two-year, floating rate loan. " -- February 26, 2020 The Real Deal article

JLL Capital (Jersey City, New Jersey) -- The company announced it is building an apartment community located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

JLL Capital Markets announced today that it has arranged $41 million in acquisition financing for BELA, a newly developed, 104-unit, luxury apartment community located within a qualified opportunity zone in Jersey City’s rapidly expanding Bergen-Lafayette neighborhood.

JLL worked on behalf of the borrower, Golden Glades Capital Management, to arrange the two-year, floating-rate loan that was provided by Ares Commercial Real Estate Corporation (NYSE: ACRE). -- April 2, 2020 MultifamilyBiz article

 

Advanced Sciences and Technologies, LLC (Berlin, New Jersey) – increased 401(k) match for employees.

Unity Bank (Clinton, New Jersey) – all 200 non-executive employees will receive a $750 bonus:

In response to Congressional approval of tax reform legislation, Unity Bancorp, Inc. (NASDAQ:UNTY), parent company of Unity Bank, announced today that its Board of Directors has elected to provide all employees excluding executive management with a one-time $750 bonus.

“The bank’s Board and executive management felt strongly that the anticipated benefit of the corporate tax rate reduction should be shared with our employees,” said Unity Bank President & CEO James A. Hughes. “Unity’s employees constantly demonstrate their commitment to our customers and the community, not only in their work responsibilities, but by donating their personal time and resources to benefit those in need. We foster an entrepreneurial culture at Unity where the employees and bank can grow together and this decision fits perfectly with that philosophy.”

The corporate tax rate in the recently passed legislation will drop from 35% to 21%. Unity Bank intends to pay the bonuses to its approximately 200 employees in January. – Dec. 26, 2017 Unity Bancorp Inc. press release

Amboy Bank (Old Bridge, New Jersey) – Base wage raised to $15 per hour; $1,000 bonuses for non-executive employees:

The New Jersey Bankers Association said Amboy Bank was "sharing the benefits of the recent tax reform."

"They are joining the growing group of banks across New Jersey and the country that are rewarding employees with increased wages, special bonuses and enhanced benefits programs as well as increased funding for charitable giving," president and CEO  John E. McWeeney, Jr. said in a statement. – Feb. 8, 2018 NJ Advance Media article excerpt

Apple (There are 12 Apple stores in New Jersey: Atlantic City, Bridgewater, Cherry Hill, Edison, Freehold, Lawrence Township, Marlton, Paramus, Rockaway, Short Hills, Wayne, Woodcliff Lake) -- $2,500 employee bonuses in the form of restricted stock units; nationally, $30 billion in additional capital expenditures.

Johnson & Johnson (New Brunswick, New Jersey) – New investments due to tax reform – details will be released in April.

“Now regarding tax reform, what we said from the very beginning is that one of the major reasons, in addition to lowering the rate, is just frankly the flexibility that it provides us, and we think it actually helps make us more competitive, particularly on an international level if we happen to be in a competitive situation with other companies because now we have greater flexibility on how we can access that cash. So we think net-net, it's a positive for us. As you heard Dominic [J&J CFO] mention earlier, regarding the more immediate tax reform impact, we think that the -- the wise thing to do is to invest a good portion of that back into R&D. If you look over the past several years, the output, the productivity, particularly in our pharmaceutical pipeline, but also in others of our investments in R&D, we think, have been at the high end. And we think ultimately doing that, we'll have the greatest impact on our business, will help us get out to better serve underserved needs around the globe, and that's where we're heading in that direction.” – CEO Alex Gorsky

"We are pleased by the final passage of the U.S. tax cuts and jobs act.” – CFO Dominic Caruso

Bank of America (Multiple locations in New Jersey) -- New Jersey-based employees of Bank of America will receive $1,000 bonuses.

Cintas Corporation (Multiple locations in New Jersey) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year. 

Chipotle Mexican Grill (Multiple locations in New Jersey) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Comcast (Multiple locations in New Jersey) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.

Home Depot -- 72 locations in New Jersey, bonuses for all hourly employees, up to $1,000

Lowe's -- 5,000 employees at 39 stores and two distribution centers in New Jersey. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (13 locations in New Jersey) – Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in New Jersey) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

T.J. Maxx – 39 stores in New Jersey – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:

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:

Associates

  • 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

Communities

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

U-Haul (Multiple locations in New Jersey) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Wal-Mart – 63 locations in New Jersey -- Base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.

Wells Fargo  279 locations in New Jersey; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other New Jersey examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

More from Americans for Tax Reform


How the Trump Republican Tax Cuts Are Helping Oregon

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, June 29th, 2021, 5:10 PM PERMALINK

Oregon is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:

271,710 Oregon households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Oregon 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.

1,211,050 Oregon 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.

70,010 Oregon 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, Oregon 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 six Oregon utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Oregon businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

FireBird Bronze (Damascus, Oregon) – Thanks to tax reform this full-service foundry with nine employees is able to offer health insurance for the first time. They are also upgrading equipment and hiring, and building a new facility in Troutdale, Oregon:

We are a small manufacturing business casting artwork for artist in bronze, we have 9 employees and because of the tax cuts and the current business friendly climate we are for the first time offering employees health care insurance costing our company 40k per year.  – Rip Caswell, FireBird Bronze

Portland Cider Company (Clackamas, Oregon) – Because of the Tax Cuts and Jobs Act, the owner was able to create new jobs and invest in new equipment:

Jeff Parish, Co-Founder of Portland Cider Company and Committee Member of the United States Association of Cider Makers: “As a cider maker, the temporary CBMTRA allowed me to purchase new equipment, hire new staff and grow my business. If the excise tax credits go away, I have to reverse those choices. We're hopeful the permanent version of the bill passes, so we can plan with certainty for a growth-future." – Feb. 6, 2019, U.S. Senate Finance Committee press release.

Miles Fiberglass (Oregon City, Oregon) - Hiring more employees, increasing wages, implementing profit-sharing bonuses for existing employees:

 Lori Miles-Olund, who is the president of the family-owned business that her father founded in 1963, explained how Miles Fiberglass plans to pass along the benefits to its employees:

  • “We increased our starting wage by 9 percent, which bumps everyone up the chart,” Miles-Olund said. “We’ve also implemented a new training program, ‘Learn to Earn.’ Every time employees learn a new skill, they get an hourly pay increase of $1.00, $1.50.”

  • She reported that, even as expenses like health insurance have gone up on the employer side, tax reform means that Miles Fiberglass will not be passing those added expenses along to its employees. And, since many employees commute from more than an hour away, Miles Fiberglass is also helping make these long commutes more affordable, providing a flat-rate gas stipend.

  • “We also anticipate implementing our bonus program again this year,” Miles-Olund said, noting that it had previously been on hold for quite some time due to the economic climate. Once implemented employees will start receiving a quarterly profit-sharing bonus, meaning that, as Miles continues to succeed, employees will directly benefit.

Miles Fiberglass also plans to expand its facilities and workforce dramatically. “We anticipate our sales to double this year due to the economic climate,” Miles-Olund told the National Association of Manufacturers (NAM), adding that demand for composite component parts is “far more than we’d seen in the past.” – June 1, 2018, National    Association of Manufacturers Shopfloor article excerpt

Alter Ego Cider (Portland, Oregon) – The Tax Cuts and Jobs Act allowed the company to invest in the business and hire more people:

Anne Hubatch, co-owner of Alter Ego Cider and VP of the Northwest Cider Association, said “The [CBMTRA] has made real and lasting impacts to my small business. As a micro-craft cidery, this act helps us to save on our excise taxes which in turn keep more money in the business to grow and invest in more staff and equipment." – Feb. 13, 2019, BeverageDaily article.

Avista Utilities (Medford, Oregon) – The utility is passing along tax savings to customers:

As explained in more detail below, the Company is requesting a rate decrease of $3,708,000 or 4.2%, effective March 1, 2019. 

The primary purpose of this filing is to pass back the 2018 deferred portion of the benefits attributable to the revisions of the federal income tax code caused by the enactment of the Tax Cuts and Jobs Act signed into law on December 22, 2017. Per discussions with Commission Staff, the Company is requesting less than statutory notice to begin returning the deferred tax benefits of $3.708 million to customers over a twelve month period effective March 1, 2019 to February 29, 2020.

---

A residential customer using an average of 47 therms a month could expect their bill to decrease by $2.18 or 4.3%, for a revised monthly bill of $49.02 effective March 1, 2019. - February 11, 2019 Public Utility Commission of Oregon document

Pacific Power (Portland, Oregon) – The utility is passing along tax savings to customers:

Following through on a pledge made when the Tax Cuts and Jobs Act became law in late 2017, Pacific Power’s 550,000 customers in Oregon will see a decrease in their bills starting Feb. 1, 2019.

Under the tax cut-related reduction, as approved by the Oregon Public Utility Commission, residential customers in Oregon will see a bill decrease of approximately 3.8 percent. A typical Oregon residential customer using 900 kilowatt hours of electricity per month will see their bill drop from about $98.52 to about $94.40 per month after Feb. 1. Commercial and industrial customers in the state will see reductions ranging from 3 percent to 4 percent depending on the customer classification. - January 29, 2019 Gorge County Media excerpt

Northwest Natural (Portland, Oregon) – The utility is passing along tax savings to customers:

A NW Natural spokeswoman said rates also reflect savings from the Tax Cuts and Jobs Act, which cut the corporate tax rate from 35 percent to 21 percent. It's standard regulatory practice in Oregon for rates to incorporate shifts in the tax burden companies face, up or down - October 30, 2018 Portland Business Journal excerpt

Idaho Power (Boise, Idaho) – The utility is passing along tax savings to customers:

On May 30, 2018, the Commission issued Order No. 18-199 approving a Term Sheet agreed to by Idaho Power, Staff, and the Oregon Citizens' Utility Board, collectively "Parties", that quantified the cost-of-service benefits of the 2017 Tax Act and the 2017 Tax Act impacts associated with the North Valmy power plant levelized revenue requirement. The Parties agreed that the annual Oregon-jurisdictional tax benefits of $1,483,736 are a reasonable quantification of all tax benefits resulting from the 2017 Tax Act for 2018 and 2019. Further, the Parties agreed that the annualized tax benefits will remain in customer rates through May 31, 2020, to provide customers with a full 24-month benefit period associated with 2018 and 2019 tax benefits. In order to facilitate this ratemaking treatment, the Company agreed to request reauthorization from the Commission of the Oregon jurisdictional tax reform benefits authorized in UM 1928. 

On December 23, 2019, Idaho Power filed with the Commission a request to update the quantification of Tax Reform benefits to be included in customer rates beginning June 1, 2020. On May 5, 2020, the Commission issued Order No. 20-148, approving Idaho Power's quantification of $1,519,887 in annualized Oregon jurisdictional benefits associated with Tax Reform and adjusted customer rates to reflect amortization of the Tax Reform benefits effective June 1, 2020. This amount will remain in customer rates until Idaho Power's next general rate case or other proceeding where the then current tax expenses and other tax related revenue requirement components are reflected in rates. - December 29, 2020 Public Utility Commission of Oregon document

Cascade Natural Gas Corporation (Kennewick, Washington) – The utility is passing along tax savings to customers:

The parties agreed the Company would return a total of $1.4 million to rate-payers over a 12 month period beginning November 1, 2019. This amount is inclusive of all remaining interim Tax Act benefits and is comprised of $1.2 million dollars for the 2018 deferral period and $200 thousand dollars for the January - March 2019 deferral period. - September 12, 2019 Public Utility Commission of Oregon document

Avion Water Company, Inc. (Bend, Oregon) – The utility is passing along tax savings to customers:

In 2017, the 115th United States Congress passed H.R.1 – Tax Cuts and Jobs Act (H.R.1or Act). The Act was signed into law on December 22, 2017 by President Donald Trump, with most provisions going into effect on January 1, 2018. The Act contains provisions that impact regulated utilities’ federal tax obligations, including a reduction in the corporate income tax rate and the treatment of Contributions in Aid of Construction (CIAC) for water utilities. On March 1, 2018, Staff filed its initial Application for an order authorizing deferred accounting to track the impact, for later ratemaking treatment, of the Tax Act for the twelve month period beginning March 1, 2018. On February 28, 2019, Staff submitted an application for reauthorization to defer these amounts, and again on March 2, 2020, Staff submitted an application for reauthorization of the deferral. These applications were approved by the Public Utility Commission of Oregon (Commission) on November 19, 2020 in Order No. 20-443. The ratemaking treatment for these deferrals is addressed in Avion’s most recent general rate case, Docket UW 181, Order No. 20-488.

This filing is Staff’s application for reauthorization to continue deferring amounts related to the tax benefits associated with the TCJA. While most of the issues associated with TCJA benefits were addressed in Order Nos. 20-443 and 20-488, there is a narrower subset of tax benefits associated with CIAC that require a continued deferral, as described below, to ensure future ratemaking treatment for tax benefits and obligations not currently reflected in rates.

---

Staff requests to defer, for later ratemaking treatment, certain CIAC-related tax benefits associated with the Act. The Act resulted in the taxability of CIAC for water utilities, which was not present prior to the Act. The CIAC-related tax obligation will be due to the taxing bodies for the year in which the CIAC is assumed, and will be paid along with other taxes paid for the year in which the CIAC is received. Also beginning in that year, and then for each year over the tax life of the asset, water utilities will claim the tax depreciation of the CIAC assets, which functions as a deduction to the utility’s taxable income (CIAC Tax Benefits). The benefits at issue for this Application are the CIAC Tax Benefits. - March 1, 2021 Public Utility Commission of Oregon document

Vida (Portland, Oregon) -- The coworking startup is building their first location in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A coworking startup focused on women entrepreneurs is opening its first location, along Northeast Sandy Boulevard.

The space will open July 1 in the Jantzen Building, 401 N.E. 19th Ave., on the second floor.

Vida is a new entrant in the increasingly crowded coworking field dominated by WeWork, which is preparing for an initial public offering, and Portland-based CENTRL Office. Vida is seeking to set itself apart with a suite of services for working women, including on-site, drop-in child care and dedicated breastfeeding rooms.


...

Vida raised $101,000 in an initial round of fundraising, according to a news release. The company is located in an opportunity zone, and Marconi is planning to open an opportunity zonefund by Sept. 1, advised by Schwabe, Williamson & Wyatt and Perkins & Co. -- June 21, 2019 Daily Journal Of Commerce article

Block 216 (Portland, Oregon) -- A company is building an apartment building in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Developers of a mammoth downtown tower are betting their ultra-high-end building will fetch condo prices and hotel room rates unprecedented in Portland.

Block 216, a proposed 35-story structure at Southwest Ninth Avenue and Alder Street, will cost about $600 million to build, making it one of the most expensive single-building projects in the city's history.

...

Developers say the new building will bring a new level of luxury to Portland. Ironically, investors in the project will benefit from hefty tax breaks under a federal Opportunity Zone program intended to stimulate investment in poor neighborhoods. -- August 10, 2019 The Oregonian article

Eagle Telephone System, Inc. & Eagle Valley Communications (Hells Canyon Snake River Corridor, Oregon) -- $1,000 bonuses; together the companies have 19 employees:

Though our Companies are small in comparison to Boeing and AT&T and others on this list, our hearts are none the less just as big or bigger, said Mike Lattin, President and CEO of Eagle Telephone System, and Eagle Valley Communications, dba Comco Construction.

Mike announced that both Eagle and Comco employees will be receiving $1000.00 bonuses by the holidays, this is due in large part to the recent tax reform bill having been passed and also the fact that President Trump has worked very hard to lessen the regulatory burdens that had been put on our industry by the previous administration. Combined these companies employ 19 people in a very rural part of Eastern Oregon; Richland. Our services include providing telephone and broadband, cellular and wireless, as well as construction services of all types. Our services are critical to the Rural market we serve. A sample of our market is Hydro Production along the Hells Canyon stretch of Snake River, Ranchers, Cattle Producers and Farmers, providing everything from beef, lamb, soy, alfalfa, hay, dairy products and more, Forest Production Practices and in large part Recreation in all four seasons.

Mike stated that he believes that this administration is looking out for us, for Rural America and that is what we need to keep our industry competitive world wide. He finished by stating that this administration and the tax reform bill just passed have been a god send to Rural Eastern Oregon. – Statement by Rusti Lattin, for Mike Lattin, President and CEO.

Block 216 (Portland, Oregon) -- A company is building an apartment building in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Developers of a mammoth downtown tower are betting their ultra-high-end building will fetch condo prices and hotel room rates unprecedented in Portland.

Block 216, a proposed 35-story structure at Southwest Ninth Avenue and Alder Street, will cost about $600 million to build, making it one of the most expensive single-building projects in the city's history.

...

Developers say the new building will bring a new level of luxury to Portland. Ironically, investors in the project will benefit from hefty tax breaks under a federal Opportunity Zone program intended to stimulate investment in poor neighborhoods. -- August 10, 2019 The Oregonian article

Lora DiCarlo (Bend, Oregon) -- The marital aid company got its start with help from an Opportunity Zone grant, and is located in a Opportunity Zone created by the Tax Cuts and Jobs Act:

Lora DiCarlo developed its technology at Oregon State University's robotics lab and received $1.1 million in funding through the Oregon Opportunity Zone Limited Partnership, a tax incentive enabled by the federal tax cuts approved last year.

The company has nine employees, split between Bend and its research lab in Corvallis. -- January 8, 2019 The Oregonian article

RevOZ Capital and Alpha Wave Investors, LLC (Redmond, Oregon) -- The companies are building a hotel in an Opportunity Zone created by the Tax Cuts and Jobs Act:

RevOZ Capital has partnered with Alpha Wave Investors, LLC to close an Opportunity Zone investment--a holistic hotel with street front retail. Situated in the core of Redmond, OR, the historic property is being repositioned to a 49-room hotel featuring 13,000 square feet of street front retail, restaurant, lobby co-working and bar space. The transaction closed in March 2019.

The hotel will operate as a Soul Community Planet property, a concept established by Alpha Wave. The Soul Community Planet hotel merges environmentally friendly and socially responsible practices with healthy based accommodations--nutritious plant-based food choices are provided to fit the needs and wants of all customers. The Redmond property will offer venues for socializing, collaborating, coworking and a superior fitness experience.

The Soul Community Planet Redmond hotel is the only select service hotel centered on these values in a growing market that is failing to meet these needs. The new ownership will complete renovations within the next several months and is anticipated to reopen in 2019. The Redmond-Bend area is now known as one of the fastest growing cities in the U.S. May 27, 2017 -- "Bend Among Fastest Growing Cities." A hot leisure destination, the year-round population of the Redmond-Bend Metropolitan Statistical Area is approximately 200,000, and attracts around three million visitors each year. -- April 8, 2019 press release

Trail Distilling (Oregon City, Oregon) – The distillery was able to hire more employees and invest in new equipment because of the Tax Cuts and Jobs Act:

“It allowed us to put that savings back into our distillery,” Sara Brennan, co-owner of Oregon City’s Trail Distilling told KOIN 6 in September. “It allowed us to hire more people for sales … (and) invest in more equipment so we can distill more product.” – Dec. 15, 2019, KOIN 6 article.

Umpqua Holdings Corporation (Portland, Oregon) – Base wage raised to $15.25 per hour; $1,000 bonuses for over 15,000 non-executive employees:

Umpqua Bank, based in Portland, Ore., announced in its latest earnings call that it had paid $3.2 million in employee profit-sharing and contributed $2 million to the Umpqua Bank Charitable Foundation as a result of the tax bill. – Jan. 31 2018, ABA Banking Journal article excerpt

AT&T -- $1,000 bonuses to 637 Oregon employeesNationwide, $1,000 bonuses for 200,000 employees and a $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

Apple -- (Apple store locations in Tigard and Portland) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

Walmart – Oregon employees at 43 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

Home Depot -- 37 locations in Oregon - Bonuses for all hourly employees, up to $1,000.

Lowe's -- 2,000 employees at 14 stores and one distribution facility in Oregon. Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (Locations in Portland, Salem, Springfield, Tigard) – Tax reform bonuses for employees.

Best Buy -- 14 locations in Oregon; $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. 

Cintas (Multiple locations in Oregon)-- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year

Chipotle Mexican Grill (Multiple locations in Oregon) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.

Comcast (Multiple locations in Oregon) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.

Starbucks Coffee Company (359 locations in Oregon) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

T.J. Maxx – (12 locations in Oregon) – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:

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:

Associates

  • 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

Communities

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

U-Haul (Multiple locations in Oregon) – $1,200 bonuses for full-time employees, $500 for part-time employees.

FedEx (Multiple locations in Oregon) – 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

Waste Management Inc. (Multiple locations in Oregon) -- $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 (200+ locations in Oregon) – 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 

Bank of America (50 branch locations in Oregon) -- $1,000 bonuses.

Wells Fargo (95 locations in Oregon) - Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other Oregon examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

More from Americans for Tax Reform


How the Trump Republican Tax Cuts Are Helping South Carolina

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, June 29th, 2021, 5:10 PM PERMALINK

South Carolina is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:

341,160 South Carolina households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every South Carolina 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.

1,611,030 South Carolina 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.

64,440 South Carolina 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, South Carolina 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 four South Carolina utilities reduced their customers' bills (see below).

Thanks to the tax cuts, South Carolina businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Mooneyhan’s Auto Service (West Columbia, South Carolina) - Hiring new employees, business expansion:

Since then, small businesses across the Second District are expanding and creating jobs.

Bill Mooneyhan, of Mooneyhan’s Auto Service in West Columbia, announced he is adding a new bay on to the shop and hiring additional employees.  - February 21, 2018, The Lexington Ledger article excerpt

CMC Steel (Cayce, South Carolina) - Pay and benefit increases:

“Many businesses in South Carolina have already announced pay and benefit increases, like CMC Steel Company” - Feb. 12, 2018, Rep. Joe Wilson Press Release

Whiskey Alley (Aiken, South Carolina) - Expanding business operations:

Norman Dunagan, owner of Whiskey Alley restaurant and Dumpster Depot in Aiken, announced they are expanding as well. - February 21, 2018, The Lexington Ledger article excerpt

Dempsey Wood Products (Orangeburg, South Carolina) – Creating new jobs, purchasing new equipment, and expanding the business:

Signed into law by President Donald Trump in 2017, the Tax Cuts and Jobs Act has contributed to the expansion of his company, Ronny Dempsey said.

“We’ve got a big expansion going on now, and we wouldn’t be able to do it without the tax situation and the accelerated depreciation,” he said. That depreciation is a part of the law and is being offered at 100 percent in 2018 but is subject to yearly change.

--

“We were able to put some cash aside, then put it right back in the business to get the business back growing again. There really wasn’t much growth for four or five years. In 2014, we started growing again,” Dempsey said.

He again credited the depreciation, this time as a catalyst for a $15 million project the company has launched.

--

“In other words, we’ll have new equipment and have the best technology,” he said. “The plan is to get it up and going and start a second shift, and probably add another 40 jobs. We’re in position to grow the business some more, and have been since about 2014." May 2, 2018, The Times and Democrat  

Dumpster Depot (Aiken, South Carolina) - Expanding business operations:

Norman Dunagan, owner of Whiskey Alley restaurant and Dumpster Depot in Aiken, announced they are expanding as well. - February 21, 2018, The Lexington Ledger article excerpt

South Carolina Gas and Electric (Cayce, South Carolina) – The utility is passing along tax savings to customers:

In recognition of the Tax Cuts and Jobs Act of 2017 (“Tax Reform”), SCE&G shall provide customers a retail electric service bill credit equal to 4.42% of their billed rate schedule charges, excluding past due amounts, interest, penalties, non-standard service charges, franchise fees, and sales taxes. This bill credit shall be fixed at this amount for bills rendered after the effective date of this rider and before January 1, 2021 or until such earlier date as the Public Service Commission of South Carolina replaces it with a different calculation for applying the impact of the Tax Reform. - August 31, 2018 South Carolina Public Service Commission document

Palmetto Utilities Inc. (Elgin, South Carolina) – The utility is passing along tax savings to customers:

The rate hike would be lower in the first year because the utility agreed — as a stipulation of the settlement — to pass along to customers its savings from the 2017 Tax Cuts and Jobs Act.

The utility would agree not to seek another rate hike until 2023. - July 13, 2020 The Post and Courier excerpt

Duke Energy (Charlotte, North Carolina) – The utility is passing along tax savings to customers:

The changes in customer rates come after a lengthy and very public process evaluating a request that is at the heart of the company’s ability to build a smarter energy infrastructure for South Carolina. The new rates also reflect the company’s efforts to deliver electricity that is cleaner than ever, and ensure the best customer service possible. The new rates will also reflect savings from recent tax reform. - June 3, 2019 Duke Energy press release

Dominion Energy (Cayce, South Carolina)

Additionally, pursuant to PSC Order No. 2018-308 issued in Docket No. 2017-381-A related to The Tax Cuts and Jobs Act ("Tax Act"), the PSC requires utilities to track and defer as a regulatory liability the effects resulting from the Tax Act. The Total as Adjusted ROE of 7.05% includes the estimated impact of the Tax Act on SCE&G's base retail electric business for the twelve-months ended March 31, 2019.

Certain accumulated deferred income taxes contained within net regulatory liabilities represent excess deferred income taxes arising from the re-measurement of deferred income taxes upon the enactment of the Tax Act. These amounts will be amortized to the benefit of customers as prescribed in PSC Order No. 2018-804. - June 14, 2019 Dominion Energy letter

Marathon Kickz (Aiken, South Carolina) -- This shoe store opened because of the Opportunity Zones portion of the Tax Cuts and Jobs Act:

Victor Fuewell is the owner of Marathon Kickz, on the intersection of Hampton Avenue and York Street. He says after years of selling rare shoes online, he decided to open shop in his neighborhood. 

“Once I saw that I could sell my shoes on e-Bay and it was very profitable, I started going to sneaker conventions,” Explained Fuewell. “So it gave me the idea to open up a store for the community.” 

The goal of the opportunity zone is to blossom these neighborhoods. Fuewell says his store is playing a role in bringing people in and keeping kids out of trouble. 

“They’re in here for hours looking at shoes,” said Fuewell. “They’re also able to trade some shoes they have at the house for another pair. It keeps them in the store a lot.”

Marathon Kickz has been open for business for about three weeks. The owner hopes his company can be the stepping stone for other investors to bring their businesses on this side of town.

“People are just afraid to give it a chance because of the crime over this way,” said Fuewell. “So investors are kind of afraid to open up a business because they afraid of the crime.”

Victor Fuewell says opening Marathon Kickz was step one. Step two is revitalizing the car wash next to it, adding another new business in the opportunity zone." -- February 17, 2020  WJBF article.

Nephron Pharmaceuticals Corporation (West Columbia, South Carolina) – 5% pay raises for employees:

Nephron Pharmaceuticals Corporation (Nephron) CEO Lou Kennedy today announced five percent increases for all employees with the exception of commissioned employees.  The raises are a direct result of the Tax Cuts and Jobs Act that was signed into law last week by President Donald Trump.

"We are excited that the Tax Cuts and Jobs Act has given us an opportunity to recognize their hard work and sacrifices with well-deserved raises," said Lou Kennedy, CEO of Nephron. – Dec. 27, 2017 Nephron Pharmaceuticals Corporation press release

 

Pollack Shores Real Estate Group (Charleston, South Carolina) -- The company is building an apartment building in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Upper peninsula developer to use 'Opportunity Zone' tax breaks

The Merchant, a developing multi-level apartment building in the NoMo area of Charleston's upper peninsula, will be ready for its first tenants this fall.

The 231-unit development at 102 Sottile St. is a project of Pollack Shores Real Estate Group, and the Atlanta-based multifamily developer and investment firm plans to take advantage of federal tax breaks through the new "Opportunity Zone" program.

Opportunity Zones were added to the federal tax code by the Tax Cuts and Jobs Act and are designed to strengthen distressed neighborhoods across the U.S. through economic development. They were created to instill job creation and long-term investment in impoverished communities by offering tax deferments and relief.

Much of the upper peninsula was recently included in an Opportunity Zone, including areas such as North Morrison Street where new apartments and businesses have flocked to in recent years.

"Through this new initiative, we are connecting capital with communities in need of investment by structuring quality deals that add value for both our investors and the surrounding neighborhoods," said Steven Shores, president and CEO of Pollack Shores.

"As a long-term property owner, business operator and good neighbor in these districts, we will be a proactive partner committed to supporting local businesses and residents, while also adding energy and economic vitality through our projects," he said.

The company, like others, has been in a wait-and-see mode with the new program but has now decided to forge ahead. -- March 23, 2020 The Post and Courier article

Capital Square (Charleston, South Carolina) -- The real estate firm will be building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

National real estate firm Capital Square has announced the launch of CSRA Opportunity Zone Fund IV. The project-specific opportunity zone fund is raising capital to develop 529 King Street, a 50-unit, luxury apartment hotel and retail property within a designated opportunity zone in Charleston’s historic King Street corridor.

The fund seeks to raise $7.7 million in equity from investors and has a minimum investment of $100,000. Plans for the development include a five-story structure with 50 apartment hotel units, 4,218 square feet of street-level retail space, a rooftop lounge open to the public and a fitness center, library and co-working space on each floor.

The project will be co-developed with development, management, hospitality and design firm the Method Company. The finished property will operate under Method’s ROOST Apartment Hotel brand. -- January 21, 2020 Connect Atlanta article

 

The Meeting Place Church (Columbia, South Carolina) -- The church bought an abandon movie theater in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A newly remodeled movie theater on Columbia Mall Boulevard is bringing new life to the area as part of a nonprofit’s revitalization efforts that take advantage of a recently created federal tax incentive program.

Prior to renovation, the movie theater, now known as Capital 8, sat abandoned for 11 years, according to Bishop Eric Freeman, pastor and founder of The Meeting Place Church of Greater Columbia.

The theater is part of a 23-acre property in northeast Columbia that The Meeting Place Church purchased for about $3.5 million in 2017, according to Richland County property records. The property has 200,000 square feet of indoor space that was underutilized when the church took over.

The Columbia Mall Boulevard property was designated as a South Carolina Opportunity Zone by Gov. Henry McMaster last year. Opportunity Zones are a community development program created by Congress in 2017 to encourage long-term private investments in economically distressed communities by offering deferred capital gains taxes to investors. South Carolina has 135 Opportunity Zones across the state, including nine in Richland County.

“Opportunity Zones are about an area that’s been identified,” Freeman said. “It has tremendous potential for those who have the vision to come and invest in cultivating that potential.”

Freeman said one of the priorities of The Meeting Place Church is economic development and empowerment of underserved areas, and this is the second development The Meeting Place Church has worked on. The first was on Percival Road.

“We go into places that look dead, as a congregation, and kind of do the unorthodox thing of saying, ‘Hey, I know this space looks dead, I know this area feels dead, but we come with good news,’ ” Freeman said. “We will put our resources behind that good news to show a real-life illustration in the community of what once was dead can come back to life again.”

When The Meeting Place Church acquired the Columbia Mall Boulevard property, Freeman said the initial priorities were to build a community center, a church sanctuary and a conference center. After those goals were finished, he started approaching small businesses to partner with the church.

The development of the movie theater is a collaboration between movie theater group Spotlight Cinemas and The Meeting Place Church.

Freeman met Rick Phillips, owner of Spotlight Cinemas, when the pastor was trying to buy new seats for the movie theater. Freeman asked Phillips if he wanted to partner on the redevelopment.

Phillips, having opened seven movie theaters locations since 1996, was reluctant to open another. He said he already had too much on his plate, including the Spotlight Cinemas St. Andrews location, but offered to help coach Freeman through the renovation.

“It’s a great location,” Phillips said of his thoughts when he first saw the theater. “It’s got great bones. You know, it was probably a great theater in its time, and it’s too bad that somebody doesn’t reopen it, because I think, in this community, you really benefit from having a theater.”

After more than a year and a half of consulting, Phillips decided to formally partner with The Meeting Place Church. Work began in August 2018, and Capital 8 opened in December.

Phillips said Freeman’s energy convinced him to come onboard fully.

“His vision and just his passion for what he was trying to do just kind of became infectious,” Phillips said.

The theater was initially scheduled to open the before Thanksgiving, but a four-week delay in receiving new seats pushed back the opening date.

Because of the delay, Phillips said the theater was unable to have the big grand opening that it wanted, but news of its rebirth has slowly spread.

“Our business is increasing on a weekly basis, and it’s just a matter of getting people to know that there’s an alternative (theater) in their area to go to,” he said.

Columbia Mayor Steve Benjamin said in a statement that he is thankful to Freeman and Phillips “for seeing and acting on a vision for a family friendly movie theater in our city, particularly in this neighborhood. This project is one of the first of what we hope are many successful, impactful Opportunity Zone developments in Columbia. -- February 5, 2019 Columbia Regional Business Report article

Solara Hospitality (Columbia, South Carolina) – cash bonuses up to $500:

“Columbia-based Solara Hospitality, developer and owner of Marriott franchised hotels in the Midlands, said it plans to provide a cash bonus of up to $500 for all hourly-paid hotel employees. The plan for the bonuses was announced at a press conference.

“Since the passage of the Tax Cuts and Job Act of 2017 we will create some financial benefit for the company and the hotels we operate and we want to share that benefit with our associates,” said Clancy Cipkala, President and CEO of Solara Hospitality, the land developer and management company for the hotels.” – Feb. 23 2018, Cola Daily article excerpt

Blackbaud (Charleston, South Carolina) -- $2,000 in stock bonuses for most employees:

“Most Blackbaud employees will receive about $2,000 worth of stock this month, a bonus the Daniel Island-based company says it's offering because of federal tax cuts approved last year.

Chief executive Mike Gianoni said in a statement that the stock award will ensure that "all employees are owners and can participate in the company's success." Shares will be distributed Feb. 28 to workers who aren’t already paid in stock.

Blackbaud is the first Charleston-based company to award a bonus tied to the rewritten tax code, but similar announcements have trickled out of corporate America since Congress approved the measure in late December.”—Feb. 7 2018, The Post and Courier article excerpt

South State Bank (Columbia, South Carolina) -- 2,800 employees getting bonuses; $1,000 bonuses for full-time employees and $500 for part-time employees:                     

South State Bank is pleased to announce that as a result of excellent financial performance and the recent federal tax reform efforts, it will be rewarding teams with $2.7 million.          

South State will distribute $1,000 to full-time employees and $500 to part-time                  employees on Feb. 9 and will benefit more than 2,800 South State employees.

"Last year was an excellent year for South State. The performance of the company, along   with the recent tax reform provide a great opportunity to share in this success," said Robert R. Hill, Jr., CEO, South State Corporation. "We are pleased that this payment will  reach over 2,800 outstanding members of our team. Along with investing in our team, we will also invest in hiring talent and will fund investment in technology to provide    enhanced solutions for our customers." – Jan. 26 2018, South State Bank press release

Woodfield Investments (Charleston, South Carolina) -- The investment company is building a 388-unit apartment community in downtown Charleston in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A joint venture of Woodfield Investments and Argosy Real Estate Partners has received a $100.6 million senior loan from PCCP for the development of Morrison Yard, a 380-unit community in a qualified opportunity zone in downtown Charleston, S.C. At the same time, Argosy Real Estate Partners provided $27.8 million in equity financing for the same project. Phillips Realty Capital structured the joint venture equity investment on behalf of Woodfield Investment.  

Located at 838 Morrison Drive on a former State Ports Authority site, the development is on the Charleston Peninsula, in an emerging area known as North of Morrison. This former industrial zone is being revitalized through several mixed-use projects. Recently, a 231-unit project that broke ground in mid-2018, was completed in the area.

Construction has already begun on Morrison Yard, which will include 25,960 square feet of ground-floor commercial space, a 10-story building and a six-story structure. Plans also call for a shared two-level parking garage. The upcoming property is slated to include 72 studios, 164 one-, 132 two- and 12 three-bedroom units, averaging 960 square feet. Additionally, the project will also feature green space across eight courtyards, a two-level lobby, a clubhouse, a 3,300-square-foot fitness center, a business center, a media room, event space, a rooftop pool and multiple grilling areas.

According to PCCP, the Charleston region has a population of 787,643 residents and a tight unemployment rate of 2.5 percent. Several employers in the tourism, military, aerospace and technology sectors will be easily accessible from Morrison Yard, when completed in 2022. -- January 20, 2020 Multi-Housing News article

Beckett Financial Group (West Columbia, South Carolina) -- $1,000 bonuses for all employees; $1,000 matching funds charitable contributions for all employees:

The most important asset of Beckett Financial Group is our people. As a result of the Tax Cuts and Jobs Act and resulting economic growth, our company will be providing bonuses of at least $1,000 for all full-time employees. In addition, hourly employees will see a wage increase of at least 5% this year.

We recognize that our team members are the best ones to determine how to spend their dollars. This provides an opportunity for each individual to either spend money locally, save it for their retirement, decrease debt, or donate dollars to charity. In addition, we will be increasing our employee matching funds campaign by matching each of their contributions to charities dollar-for-dollar up to $1,000 per employee.

Beckett Financial Group provides retirement and insurance solutions to businesses and families throughout South Carolina and specializes in income planning for current and future retirees. We live in a world of opportunity and want to help others as a result of the Tax Cuts and Jobs Act. – Jason (JB) Beckett, Managing Partner, Beckett Financial Group

Home Depot -- 25 locations in South Carolina, bonuses for all hourly employees, up to $1,000

Lowe's -- 8,000 employees at 49 stores and one distribution center in South Carolina. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Apple (Apple store locations in Charleston and Greenville) -- Employees received $2,500 worth of stock. Nationwide, $30 billion in additional capital expenditures; $1 billion increase in capital expenditures.

Bank of America (Multiple locations in South Carolina) -- South Carolina-based employees of Bank of America will receive $1,000 bonuses.

Cintas Corporation (Multiple locations in South Carolina) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.

Chipotle Mexican Grill (Multiple locations in South Carolina) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Comcast (Multiple locations in South Carolina) -- $1,000 bonuses. Nationally, at least $50 billion investment in infrastructure in next five years.

Ryder -- (Thirteen locations in South Carolina) – Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in South Carolina) – $500 stock grants for all  retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave. 

U-Haul (Multiple locations in South Carolina) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Wal-Mart – 110 stores in South CarolinaWalmart employees are receiving tax reform bonuses of up to $1,000. Base wage increase for all hourly employees to $11; expanded maternity and parental leave; $5,000 for adoption expenses.

Wells Fargo – 132 locations in South Carolina; raised base wage from $13.50 to $15.00 per hour; Nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other South Carolina examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

 

 

More from Americans for Tax Reform


How the Republican Tax Cuts Are Helping Florida

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, June 29th, 2021, 4:30 PM PERMALINK

Joe Biden and Kamala Harris have threatened numerous times to repeal the Tax Cuts and Jobs Act on "Day One." But Florida is benefiting greatly from the tax cuts enacted by Republicans in 2017:

375,930 Florida households are no longer stuck paying the much-loathed individual mandate tax, thanks to the TCJA's elimination of this tax. 78% of Florida households hit with this tax made less than $50,000 per year. Be warned, Joe Biden wants to bring this tax back from the dead, one of the many reasons Biden can't be trusted on taxes.

1,285,360 Florida households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Florida 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.

7,517,550 Florida 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.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Florida 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 seven Florida utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Florida businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Magellan Transport Logistics (Jacksonville, Florida) - Expanding facility operations, hiring more employees:

“Just last month, Mr. Speaker, I toured Magellan Transport Logistics, a service-disabled, veteran-owned logistics company in my hometown of Jacksonville, Florida. They are adding at least 100 new jobs in the next 5 years and were able to acquire a new 47,000- square-foot facility. During the tour of the facility, we were told by the company’s CEO that this expansion is a direct result of the tax cuts that the business received from the Tax Cuts & Jobs Act. This is just one example of the differences that these cuts are making to improve the way of life for countless Americans in Florida and across the Nation. I have heard from many small businesses throughout my district who are thriving unlike never before because of these landmark reforms.” - May 17, 2018, Rep. John Rutherford statement on U.S. House Floor

Florida Concrete Unlimited (Miami, Florida) – Pay raises for all employees and higher year-end bonuses due to tax reform:

“My father and I decided, once this tax bill passed, the first thing that we should do is reinvest in the company. So we have extra cash available to give back to the employees instantly before we even felt the effects of the tax bill, we increased the bonuses for the year-end. So everybody got a little bit more in their paycheck at the end of the year for their Christmas bonus, about 20 percent more. And everybody got a raise based on tax reform.” – Feb. 2018 statement by President and COO Jason Goff

Biscayne Bay Craft Brewery (Miami, Florida) – Hiring new employees and purchasing new equipment:

Consider the story of Jose Mallea, owner of Biscayne Bay Craft Brewery, who participated in President Trump's event. The tax cuts have allowed him to purchase $100,000 more in equipment and hire two new employees. – April 29, 2018 Tallahassee Democrat article excerpt

AutoNation Inc. (Fort Lauderdale, Florida) – The company is providing a new double-match for employee 401(k) accounts. Also providing a newly expanded program for employees who are diagnosed with cancer, or have a spouse/dependent who is diagnosed:

The Trump administration's tax reform is expected to boost AutoNation Inc.'s net income by millions of dollars, so the company plans to invest the profits in expanded programs for its employees.

Fort Lauderdale-based AutoNation, the nation's largest automotive retailer (NYSE: AN), on Tuesday said the new tax cuts will benefit the company's bottom line by $41 million in the current fiscal quarter. The company expects the annual benefit from the reform bill to be $75 million to $100 million. Tax reform slashed the corporate tax rate to 21 percent from 35 percent.

With the savings, AutoNation aims to double the match for its 401(k) plan. For its deferred compensation plan, the company would double its match of up to 100 percent of the first $5,500 contributed. AutoNation employees and family members recently diagnosed with cancer would be assisted by a newly launched program that covers the employee, a spouse or eligible dependents with no exam required. The assistance includes up to $5,000 paid to the employee after a cancer diagnosis, with no limitations on how the money is spent.

"We are excited about the pro-growth environment for business in the U.S., which includes the recently signed tax reform bill," AutoNation CEO Mike Jackson said. "As a U.S.-based company, our employees, customers and shareholders will benefit greatly from a reduction in our corporate tax rates." – Jan. 16, 2018, South Florida Business Journal.

Sergio's Cuban Cafe (Miami, Florida) – The Tax Cuts and Jobs Act allowed the business to create new jobs and benefits:

Mr. Rodriguez. It's been amazing. We were-I'm a son of Cuban immigrants that fled Cuba in the early 1960s. And thanks to this country, here we are. We-thanks to the strong economy and the tax cuts, our employees have-are benefiting from higher wages, bonuses that they weren't able to receive before; benefits that they weren't able to receive before.

We, as a company, are-have currently two restaurants out of the 25. We're currently building three more. But thanks to the tax cuts, that expansion is going to accelerate, and hopefully, soon, we'll be able to create an extra 500 jobs thanks to all. – April 15. 2019, roundtable in Burnsville, Minnesota.

Our Town America (Clearwater, Florida) – Raise wages, hire new employees, and purchase new equipment:

There's no small business owner I talk to who isn't thankful to be able to protect one-fifth of his or her earnings from taxes. For some marginal small businesses, it will make the difference between staying in business and closing.

My business is no different. We're using our tax cut savings to raise wages, hire new staff, and add even more features and equipment to our brand new headquarters — a 44,000 square foot office building in Clearwater. – April 29, 2018, Tallahassee Democrat article excerpt

St. Augustine Distillery (St. Augustine, Florida) - The distillery used savings from the Tax Cuts and Jobs Act to invest in new equipment.

With a steadily increasing demand for their products and a significant tax cut bolstering their bottom line, the St. Augustine Distillery recently expanded its production capability by purchasing a variety of new distillation equipment. 

For the St. Augustine Distillery, which produces between 40,000 and 45,000 gallons a year, the tax cut meant a savings of approximately $200,000 a year. With a sudden boost to their revenue, the distillery decided to reinvest in their business by purchasing distilling equipment such as three additional incremental fermentation tanks and a new, 3,000-gallon mixing tank, a new mill and an auger system for their mash tank.

“This is a very capital-intensive industry,” said Mike Diaz, co-founder and CFO of St. Augustine Distillery. “The only way to expand your business is to invest in your equipment.” -- October 31, 2019 Jackson Business Journal

Jones Auto & Towing (Riverview, Florida) – the company, which provides 24-hour wrecker service, roadside assistance, emergency towing, and fuel delivery etc. will put two additional trucks into service, which will add two more full time jobs:

“The tax cuts are putting two more tow trucks on the road for my business. This will add two more full time job openings that will help two more families. And it will put a little more money in the bank for my family. My wife is a registered nurse and has a 401k which is doing better this last year than in the previous 13 years!!

Thanks to President Trump!!!

Thankfully I will be taken delivery of my new trucks in two weeks and hitting the road! MAGA!” – Guy Jones, Jones Auto & Towing

Joseph’s Lite Cookies (Sebastian, Florida) – $3,000 - $4,200 salary increases, new computer systems, new product packaging:

"As the president and CEO of Joseph’s Lite Cookies in Florida, I run a family-owned, sugar-free cookie business. We bake more than 12 million sugar-free cookies a day, in addition to supplying other diabetic-friendly products.

I employ numerous workers who stand to directly benefit from the Republican tax overhaul. Why? Because lower rates and increased deductions leave me with more resources to expand business operations and reward hardworking staffers.

Because of the tax bill, I’m purchasing new computer systems and creating new product packaging for international expansion. More importantly, I’m giving raises to four key employees — half of our workforce — which range from just over $3,000 to nearly $4,200. My top employees have earned greater financial security, and the Republican tax package made it a reality for them.

Because of President Trump’s commitment to lowering rates and increasing deductions, we are now experiencing the largest tax-induced investment revolution ever. Never before have we seen such a frenzy of pay hikes, 401(k) increases, and bonuses due to a single piece of legislation. Democrats scoff at their own peril. – Feb. 5 2018, Washington Examiner news article excerpt

Harris Corporation (Melbourne, Florida) -- Each of the 17,000 non-executive employees will receive 10 shares of common stock which will vest over two years. 10 shares of stock is currently worth $1,470; an additional $300 million contribution to employee pension fund; $20 million in innovation investments:

Harris Corporation (NYSE:HRS) today announced that, as a result of the passage of the tax reform bill, the company anticipates making an additional contribution to its employee pension fund, increasing its investment in research and development, and providing a one-time stock grant to all of its non-executive employees. The actions are expected to occur within the company’s fiscal 2018.

To increase current and former employee retirement stability, Harris anticipates contributing an additional $300 million into the company’s employee pension fund.

The company also will invest an incremental $20 million in technologies to accelerate innovation and affordability initiatives for its customers. This investment in research and development will leverage and enhance the company’s strong engineering talent, strengthen Harris’ position and help it capture new market opportunities in areas such as small satellites, software defined electronic warfare systems, open systems avionics, robotics and air traffic management solutions.

In addition, the company will grant each of its approximately 17,000 non-executive employees 10 shares of Harris common stock that will vest over two years. The grants have a current market value of about $1,470 each, or approximately $24 million in total.

“We are pleased to share the benefits of our strong performance and the recent tax reform legislation with our employees,” said William M. Brown, chairman, president and chief executive officer. “This represents an investment in Harris’ greatest asset and differentiator – our talented employees. Coupled with our innovation and technology investment, we are using this opportunity to further strengthen the company and position Harris for future success.” -- Jan. 30, 2018 Harris Corporation press release

Primrose School of South Tampa (Tampa, Florida) – Salary increases; playground upgrades; educational hardware and software investments; upgraded classroom flooring:

“Primrose School of South Tampa joined the ranks of other companies in giving back to our employees as a direct result of the tax reform.  We are an educational preschool providing a premier early education and child care experience for children and families in the Tampa Bay area.  Located in Tampa, Florida, we employ 85 teachers and management staff.   Thanks to the Tax Cuts and Jobs Act passed by the Republican Congress and signed into law by President Trump, each of our full-time staff members will receive a $1,040 salary increase and our part-time employees will receive one-half of that amount.  We will invest over $75,000 in turf to improve our playgrounds for our children. We purchased 50 new Apple iPads and software for classroom/student use, and we are investing in upgraded classroom flooring. Our total infrastructure investment in our beautiful school is over $150,000 thanks to President Trump and the Republican Congress!  This would not have been possible but for the tax reform and our sincerest thanks go to President Trump and to Congress for passing this legislation. President Donald Trump is doing a great job and we appreciate the hard work on his aggressive agenda.” – Jana Radtke, Franchise Owner, Primrose School of South Tampa

Tampa Electric (Tampa, Florida) – The utility is passing along tax reform savings to customers:

Tampa Electric bills won’t rise to pay for Hurricane Irma restoration costs, thanks to new tax savings. The Florida Public Service Commission (PSC) unanimously approved the measure today.

Because of recent changes made to the federal tax law, customers will directly benefit. What Tampa Electric would have paid in corporate income taxes will instead be used to cover the cost of restoring power after Hurricane Irma and several other earlier named storms. Additionally, Tampa Electric bills will reflect the ongoing benefits from tax reform starting in 2019. – March 1, 2018, Tampa Electric Press Release

Florida Power and Light (Juno Beach, Florida) – The utility is passing along tax savings to customers:

Florida Power and Light customers will not have to pay for Hurricane Irma.

The power company said Tuesday that savings from recent tax reform signed by President Trump will offset any planned costs.

FPL said it will apply its savings to the $1.3 billion in costs from Irma that it had intended to recoup from customers.

Thousands of customers lost power for days and weeks during September because of the hurricane.

The utility had previously announced that it would have to implement a surcharge in March to pay for Irma after a year-long surcharge for 2016's Hurricane Matthew ends in February.

Each of FPL's  customers will save an average of $250. - January 17, 2018 WPTV News excerpt

Duke Energy Florida (St. Petersburg, Florida) – The utility is passing along tax savings to customers:

The Florida Public Service Commission (PSC) today approved Duke Energy Florida, LLC’s (DEF) agreement to apply federal tax savings to offset storm restoration costs for Hurricane Michael, thereby avoiding a surcharge to DEF customers.

DEF had originally requested approval to recover $223.5 million, equating to $6.95 on a monthly 1,000 kWh residential bill for 12 months, beginning in July 2019. This agreement avoids these charges and continues DEF’s use of 2017 Tax Cuts and Jobs Act savings to cover hurricane recovery costs for its customers. - June 11, 2019 Florida Public Service Commission news release

Gulf Power Company (Pensacola, Florida) – The utility is passing along tax savings to customers:

The Florida Public Service Commission (PSC) today ordered Gulf Power Company (Gulf) to pass additional savings from the Tax Cuts and Jobs Act of 2017 to its customers. The Commission approved an additional $9.6 million in customer bill reductions.

As a result, Gulf’s base rates will be reduced by $9.6 million, allowing residential customers to see a monthly bill reduction of $1.11 per 1,000 kWh in January 2019. In addition, Gulf proposes to reduce its 2019 fuel cost recovery amount by $9.9 million. This proposal will be considered at the PSC’s annual cost recovery clause hearing in November. - October 30, 2018 Florida Public Service Commission news release

Florida Public Utilities Company (Fernandina Beach, Florida) – The utility is passing along tax savings to customers:

The Florida Public Service Commission has approved the settlement agreement between Florida Public Utilities Company (FPU), a subsidiary of Chesapeake Utilities Corporation (NYSE: CPK), and the Office of Public Counsel (OPC). The settlement agreement, which was filed on October 17, 2018, reduces electric rates as a result of the federal Tax Cuts and Jobs Act.

“This decision provides an immediate benefit to FPU electric customers, and we are appreciative of the Public Service Commission’s decision to approve our agreement which passes financial savings to customers,” said Jeffry M. Householder, President and Chief Executive Officer of Chesapeake Utilities Corporation. “The federal tax credit combined with declining electricity commodity costs reduces the average FPU residential customer’s total bill, which has remained unchanged from nearly a decade ago.”

FPU residential electric customers will be receiving an average estimated $3.32 decrease on their monthly bills. Commercial electric customers will also receive monthly bill reductions. Reduced rates for FPU electric customers are reflected on their January bills. The terms of the settlement will further reduce the average residential electric bill by an additional estimated $0.45 beginning January 1, 2021. - January 24, 2019 Chesapeake Utilities Corporation press release

Peoples Gas System (Chicago, Illinois) – The utility is passing along tax savings to customers:

The Florida Public Service Commission (PSC) today approved a Settlement Agreement that will reduce monthly bills for TECO Peoples Gas System (Peoples) customers beginning in January 2019. 

A result of the Tax Cuts and Jobs Act of 2017, the Agreement reduces Peoples revenue requirement by $11.6 million annually. The revenue decrease will affect the base rate portion of the bill for all customer classes.  For example, a residential customer using a monthly average of 20 therms would see a $1.00 reduction in the base rate portion of the bill. - September 12, 2018 Florida Public Service Commission document

Florida City Gas (Miami, Florida) – The utility is passing along tax savings to customers:

The Florida Public Service Commission (PSC) today approved  Settlement Agreements for Florida Public Utilities Company (FPUC) and for Florida City Gas (FCG) to implement savings from the Tax Cuts and Jobs Act of 2017. 

---

In the Florida City Gas case, the company, OPC, and the Federal Executive Agencies agreed to a 2018 Stipulation and Settlement that will reduce the gas utility’s base rates by a total of $305,000 in January 2019 to reflect ongoing tax savings. Also starting in January 2019, the company’s revenues will be reduced by an additional $305,000 annually for five years to compensate customers for retroactive impacts of the tax law. - December 11, 2018 State of Florida Public Service Commission news release

Estate Investment Group (Miami, Florida) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Estate Investment Group has broken ground on the Soleste Bay Village apartments in Palmetto Bay after obtaining a $34 million construction loan.

Soleste Bay Village is located in Palmetto Bay’s new Downtown Urban Village District, which encouraged mixed-use development. It’s also in a newly designated federal Opportunity Zone, where investors have the benefit of taking tax deferrals.

“While the Village of Palmetto Bay has been growing and evolving at a steady rate over the last couple of years, the levels of interest from developers, investors and potential residents are really starting to pick up,” said Robert Suris, founder and principal of EIG. “The entire area is on the cusp of some major activity and we’re going to be ready.”

The five-story project was designed by Caymares Martin Architectural and Engineering Design. The majority of the retail space would be part of live/work apartment units. There would also be a 297-space parking garage.

Amenities would include a pool deck on the third floor, a gym, a party room, a dog park and a playground. --October 24, 2018 South Florida Business Journal article

Fore Property (Kissimmee, Florida) -- The company is building a 384-unit apartment building that is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Fore Property secured a $49.6-million loan to develop 19 South, a 384-unit apartment community located in a qualified opportunity zone in Kissimmee, FL. BBVA provided the loan for the development of the project, which is a joint venture between Fore Property and Canyon Partners Real Estate LLC.

The LEED-designed, wood-framed development will consist of four, four-story residential buildings, featuring a mix of studio, one, two and three-bedroom floor plans. The residences will offer such contemporary features as chef-inspired gourmet kitchens, quartz countertops, energy-efficient stainless-steel appliances, walk-in closets,  and hardwood-style flooring.

19 South offers convenient access to the Osceola Parkway, Florida Turnpike, and John Young Parkway, as well as downtown Kissimmee, Lake Nona Medical City, Walt Disney World Resort and Orlando International Airport. -- April 3, 2020 Connect Media article

JWV Real Estate (Jacksonville, Florida) -- The company announced that they are building shipping container apartments in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Plans for Jacksonville-based JWB Real Estate Capital's shipping container apartments are moving forward, with revised plans submitted Sep. 20.

The Ashley Street Container Lofts will consist of 18 apartment units totaling 2,280 square feet constructed from shipping containers, according to the plans prepared by Kimley Horn. Plans for the project on 0.13 acres at 412 East Ashley Street were first submitted in June.

The site is in the Cathedral District and is located in an opportunity zone, meaning it is eligible to serve as a tax shelter for capital gains. JWB purchased the property in February through an affiliate for $52,500. -- September 23, 2019 Jacksonville Business Journal article

Santa Fe College (Gainesville, Florida) -- The college is expanding their Center for Innovation and Economic Development which is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Santa Fe College announced two weeks ago that it had received a $4.8 million federal grant to aid in the rebuild and expansion of its Center for Innovation and Economic Development (CIED) at the Blount Center.

About $1.2 million in state funding will also go toward the project, which, according to a news release, will "support the development and growth of new business sectors by rebuilding and expanding the College Center for Innovation and Economic Development."

"How this grant can help Santa Fe is how we can help our community," said Kathryn Lehman, director of grants and projects. "Because that's really the purpose of the college."

The CIED's entrepreneur incubator has helped 150 new companies get off the ground, including local companies Student Maid and Altavian, according to Lehman. She estimates the economic impact on the community to be in the millions.

College officials hope to have the facility completed and open by the spring of 2021, according to Liam McClay, assistant to the president for innovation and governmental affairs.

It will also be located in a Tax Cuts and Jobs Act Opportunity Zone. According to the IRS, an Opportunity Zone is an "economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment."

"By sending grant funds to a Tax Cuts and Jobs Act Opportunity Zone, the investment in rebuilding and expanding Santa Fe College's CIED facility will not only grow new business sectors including IT, technology and other knowledge-based industries, but also attract additional investment with special tax incentives," said Secretary of Commerce Wilbur Ross.

The federal portion of the grant comes from the U.S. Department of Commerce's Economic Development Administration. -- June 5, 2019 Gainesville Sun article

TSG Group and Linéaire Group (Miami, Florida) -- The companies are developing an apartment tower that will include retail space located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

TSG Group and Linéaire Group, both based in Miami, paid $5.9 million for the 30,000-square-foot, six-lot vacant property at 1765 N. Miami Ave. on March 14.

They plan to develop an 18-to 24-story apartment tower with ground-floor retail. Construction is set to start in early 2020 and finish in early 2022.

The property northeast of Miami Avenue and 17th Street is in an opportunity zone, one of many areas across the U.S. poised to get an influx of investment under a change in federal law.

The 2017 Tax Cuts and Jobs Act created the opportunity zone concept, allowing investors to defer taxes on their capital gains from commercial ventures and put the gains into opportunity zone developments. -- April 3, 2019 Palm Beach Daily Business Review article

Affiliated Development LLC (Fort Lauderdale, Florida) -- The company is building an apartment complex located within an Opportunity Zone created by the Tax Cuts and Jobs Act:

Construction started on The Six13 apartment building in Fort Lauderdale after the developer secured $19.3 million in project financing.

Affiliated Development LLC, a Fort Lauderdale-based multifamily developer, obtained the loan from City National Bank on April 4 for the six-story development, which will have 142 one and two bedroom units.

The Six13, named for its location at 613 NW Third Ave. in the Progresso Village neighborhood, will have a 197-space garage and 5,991 square feet of ground-floor commercial space, including a restaurant.

Like other apartment projects rising in South Florida urban cores, it will have out-of-the-box amenities such as a gated dog park, a residents only bike-share program, co-working space and a fourth-floor pool with cabanas.

But unlike other new apartment projects, it won't come with the sometimes cost-prohibitive rents as Affiliated has vowed Thee Six13 will be more attainable.

The planned rents are good news for residents who work in Fort Lauderdale's urban core but can't afford to live there, Burns said.

"We wanted to provide them an opportunity to live close to where they work, close to where they play," he said.

The project also is in an opportunity zone, a state-designated distressed areas where investors can grab tax advantages.

While the opportunity zone doesn't necessarily translate to lower rents, it was how the developer secured the remaining $14 million in financing.

The so-called OZ program created by the federal Tax Cuts and Jobs Act of 2017 allows investors to defer paying taxes on the capital gains they invest in opportunity zones, while areas that could use the help get the financial boost.

The federal program dictates that investors place their capital gains in a qualified opportunity zone fund. -- April 17, 2019 Palm Beach Daily Business Review article

Seaward Landing (Marathon, Florida) -- The company announced they are building rental units that will be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

 Index Investment Group announces its newest development, Seaward Landing coming to construction completion in June 2020. The community consists of 45 multifamily workforce housing rental units situated on the Atlantic Ocean. The property is located at 8700 Overseas Highway in the heart of the Florida Keys, Marathon. The project has received a lot of community interest and is projected to obtain a certificate of occupancy in June and commence pre-leasing in May.

Index acquired the property in late 2016 and held the property until it commenced construction of the project in late 2018. Located in an Certified Opportunity Zone on a 3-acre site in the heart of Marathon, adjacent to the Marathon International Airport, on US Highway 1 is well situated for locals living and working in the Keys. The development features a leasing office, 45 multifamily units made up of one, two and three-bedroom units with amenities including a dog park and play area, all within walking distance of the Atlantic Ocean. -- May 5, 2020 Index Investment Group press release

EJF Capital LLC and Chance Partners LLC (Jacksonville, Florida) -- The company announced they are building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

EJF Capital LLC (“EJF”) and Chance Partners LLC (“Chance Partners”) today announced the acquisition of a 284-unit multifamily housing community under development in the San Marco neighborhood of Jacksonville, FL. The project, known as San Marco Promenade (the “Project”), is expected to be complete in the third quarter of 2020 in an area certified as an “Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”). The TCJA offers investors tax benefits to invest into Opportunity Zones with the aim of spurring economic growth in lower income areas. -- April 29, 2020 EJF Capital LLC and Chance Partners LLC press release

BTI Partners (Hollywood, Florida) -- The firm is building an apartment building that is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

The 25-story Parc Place was originally approved for Hollywood-based MG3 Developer Group in October 2018. The 3.24-acre site is now under contract to Fort Lauderdale-based BTI Partners, led by veteran commercial developer Noah Breakstone.

The project would rise at 1727-1745 Van Buren St., 1700-1716 Harrison St., and 1740-1760 South Young Circle. It would replace the "Hollywood Bread" building, an 11-story structure that has been shuttered for years.

The project is in an Opportunity Zone, which could create significant tax savings for the developer. -- October 9, 2019 South Florida Business Journal article

Taplin Development Corp. (Hallandale Beach, Florida) -- The company is building 320 apartment units, a 120 key hotel, and retail stores in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A high-rise apartment and hotel project is planned for an Opportunity Zone in Hallandale Beach.

Taplin Development Corp., led by Jack Taplin, received approval from the city to build 320 apartments and a 120-key hotel with a retail component across from Gulfstream Park, according to a release. The project will be called the Falls at Gulfstream and the property will consist of a 23-story building at 900 South Federal Highway.

The Class A property will have a rooftop bar overlooking the finish line at Gulfstream Park. The property is also adjacent to the Village at Gulfstream Park, an upscale shopping center.

The federal Opportunity Zone program allows developers and investors to receive a tax incentive if they invest in one of the more than 8,700 zones throughout the country. The program was designed to encourage investment in low-income and distressed areas, but has come under scrutiny as a tax break for wealthy developers.

“We are currently seeking Opportunity Zone joint venture equity to meet the end of the year zone deadline,” Taplin said in a statement. -- November 13, 2019 The Real Deal article

Don Ramon Restaurant (West Palm Beach Florida) -- The Cuban restaurant gave pay raises and bonuses to employees and purchased new coffee machines and refrigerators in order to renovate and expand:

As the owner of Don Ramon Restaurant in West Palm Beach, I know the positive impact of small business better than most.

Because of the recently passed Tax Cuts and Jobs Act, we will pay lower taxes and qualify for higher deductions, leaving Don Ramon in a better position than ever before. We plan to open a takeout window and set up a customer bar, which would generate up to eight new jobs. We will also install new refrigerators and coffee machines, in addition to making much-needed renovations to better serve our customers.

Perhaps most important, all of our key employees received generous bonuses in December, and they will also see pay increases in the coming weeks. We take great pride in rewarding our workers, and the new tax code makes it much easier to do so. -- Feb. 3, 2018 Palm Beach Post op-ed excerpt

Orb Development (Boca Raton, Florida) -- The company announced they will be creating a mixed-use building that will house 131 apartments in addition to retail space, located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Locally-based Orb Development and joint venture partner Pebb Capital of Boca Raton has acquired a 0.25-acre Qualified Opportunity Zone site here and plans to build a mixed-use project there.

The property is located at 155 Chestnut St. in the Innovation District, previously known as the Jewelry District. The partnership plans to construct a modular 110,000-square-foot, Class A, mixed-use development that will feature 131 multifamily units and approximately 8,600 square feet of retail space at the quarter-acre site. -- September 20, 2019 Palm Beach Business Review article

Columbia Ventures LLC (Jacksonville, Florida) -- The company is converting a warehouse into 200 affordable apartment units in an Opportunity Zone created by the Tax Cuts and Jobs Act:

LISC Real Estate and Lending Officer Chuck Shealy told the Business Journal on March 12 that the developers planned a project costing around $50 million that would include 200 apartment units and 30,000 square feet of "commercial creative/maker space." Apartments would rent at affordable to workforce rates, tiers pegged to the area's median income.
 
LISC, which focuses on projects that produce affordable housing, often provides bridge loans and other flexible lending options to projects in the downtown area.
 
"A good portion of the building was occupied by artists, photographers, wood workers – craftsmen of those types," said Shealy. "They want to keep that element in the project."
 
The developers expect to start construction in June, Shealy said. Columbia Ventures Managing Partner Dillon Baynes did not return a call for comment Monday.
 
Columbia's secured funding, which, among other items, includes money from LISC and the tax shelter benefits of an opportunity zone, is about $4.5 million short of the project's budget, Shealy said. The company plans to ask the city for that sum, he said. -- March 30, 2020 Jacksonville Business Journal article

Home 2/Tru by Hilton (Fort Lauderdale, Florida) -- Construction of new hotel in an Opportunity Zone created by the Tax Cuts and Jobs Act:

As investors rushed to invest in Opportunity Zones before the end of the year, Driftwood Acquisitions & Development and Merrimac Ventures locked in their first deal in the federal tax program.

The Coral Gables-based investment firm Driftwood and Fort Lauderdale-based Merrimac closed a deal through an Opportunity Zone fund by raising $24 million to develop a 218-key dual-branded hotel. The Home 2/Tru by Hilton will be built at 315-333 Northwest 1st Avenue in Fort Lauderdale’s Flagler Village. The deal closed right before the end of the year, allowing investors to take advantage of the largest possible tax benefit in the Opportunity Zones program.

The deal also comes on the heels of the long awaited final regulations released by the U.S. Treasury and the IRS late last month, which experts say gives real estate investors the clarity to start putting money into Opportunity Zone real estate projects.

Jorge L. Gomez-Moller, Driftwood’s general counsel, said investment in the company’s Opportunity Zone fund has come from retail investors as well as wealthy family offices looking to take advantage of lucrative cash breaks. The project is expected to be completed within the first quarter of 2020.

The Flagler Village project is one of the few Opportunity Zone projects in South Florida in which investors will begin seeing cash flow in the next few months. Many other Opportunity Zone projects are in pre-development stages, according to Gomez-Moller.

Tucked into President Trump’s 2017 tax legislation, the Opportunity Zones initiative’s goal is to encourage private investment in distressed communities by allowing investors and real estate developers to defer or forgo paying capital gains taxes if they invest in one of the more than 8,700 zones throughout the country. -- January 3, 2020 The Real Deal article

Benada Aluminum Products LLC. (Sanford, Florida) - Increased production capacity:

“It’s given us relief. We’re able to get some margins back,” said Jim Piperato, president of Benada Aluminum LLC, a Florida-based producer of aluminum framing for patio and pool enclosures.

Mr. Piperato said the company, owned by private equity firms Big Shoulders Capital and ABGB Capital, recently increased production capacity by 50% to expand into the door and window frame market.

“Our business has been extremely strong.” he said. “Most of the customers I’ve spoken to say there’s no end in sight.” - July 17, 2018, Wall Street Journal article excerpt

Canyon Partners Real Estate LLC and Fore Property (Orlando, Florida) -- The real estate company is building a new apartment community in an Opportunity Zone created by the Tax Cuts and Jobs Act: 

Canyon Partners Real Estate LLC and Fore Property have formed a joint venture to develop 19 South, a 384-unit apartment community here. Canyon invested $29.8 million of equity into this project, which is located within a qualified opportunity zone. Construction is slated to begin in March 2020 and achieve completion by May 2022.

A spokesperson for Fore tells GlobeSt.com that 19 South is a 4-story, wood-framed development that is LEED-designed and will feature two resort-style courtyard pools, a modern arcade and gaming area, a 24-hour fitness center, an outdoor park area, as well as a fitness trail. -- January 23, 2020 GlobeSt.Com article

Old Sistrunk Distillery (Fort Lauderdale, Florida) -- Rapper Flo Rida is opening a vodka distillery in an Opportunity Zone created by the Tax Cuts and Jobs Act:

It’s only fitting for rapper Flo Rida to build his new vodka distillery in Florida.

The 40-year-old multiplatinum artist is going beyond the music charts as the co-owner and brand ambassador of Old Sistrunk Distillery, according to a Tuesday report from the South Florida Sun-Sentinel. The 13,000-square-foot venue is set to open either in late 2020 or early 2021 in one of Fort Lauderdale’s minority neighborhoods.

Old Sistrunk Distillery will pour Victor George Vodka, a brand co-owned by music execturned entrepreneur Victor G. Harvey. Flo Rida will serve as an equity partner and brand ambassador for the company, which is hyper-focused on distilling the popular Russian spirit.

“I have known Mr. Harvey for years and I’ve seen his grind, hard work and enthusiasm in building his brand,” Flo Rida said in a press statement. He added that he looks forward to “developing new products through the construction of a distillery in historic Sistrunk and empowering the community.”

In November, Harvey paid $75,000 for a 6,306-square-foot lot in Sistrunk, according to real estate news company The Real Deal. The property is considered an “Opportunity Zone,” which means any development could qualify for potential tax benefits such as deferred federal taxes on capital gains until 2026 because the federal government views investment in low-income areas as a positive.

“Opportunity zones are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities,” the IRS has written on the matter.

Harvey appears to be in agreement with the economic decision. Sistrunk is Fort Lauderdale’s oldest African American community and the median income in the very area the distillery is being built is $36,372, according to the U.S. Census Bureau, which is significantly less than Fort Lauderdale’s overall median income of $55,269.

“What we are building in the Sistrunk community is exactly what the area needs," Harvey said in a press release. "A place to dine, drink, and socialize without having to leave the area.”

The three-story distillery will be located at 1012 Sistrunk Blvd. and will include a tasting room, restaurant, lounge, cigar and wine bar. -- January 23, 2020 Yahoo Finance article

EJF Capital and Chance Partners (Jacksonville, Florida) -- Announced they are building a new housing community which will create a significant amount of construction jobs as well as property management positions. 

EJF Capital LLC (“EJF”) and Chance Partners (“Chance”) today announced the development of a two-building, 486-unit multifamily housing community in the historic San Marco neighborhood of Jacksonville, FL. The project, known as San Marco Crossing (the “Project”), is being developed on nearly nine acres consisting of three parcels in an area certified as an “Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”). The TCJA offers investors attractive tax benefits to invest into Opportunity Zones to create economic growth in lower income areas. The approximately $86 million project expects to break ground in Q3 2019 and plans to open in Q4 2020. Ameris Bank, with participation from Stifel Bank, is providing $51 million of construction financing.

“EJF continues to identify and execute on attractive Opportunity Zone investments across the U.S. and bring our financial resources and real estate operating expertise to communities that need it most,” said EJF Co-Founder and Chief Operating Officer, Neal Wilson. “We are excited to partner with Chance Partners on San Marco Crossing, which will bring high-quality multifamily units to this growing area and create a significant number of construction jobs as well as permanent property management positions. We believe small businesses in San Marco will also benefit from the added economic vitality that results from the spending power of about 700 expected new residents.” -- June 28, 2019 Business Wire

Darden Restaurants (Orlando, Florida) - workforce investments:

Olive Garden owner Darden Restaurants on Monday said it would reinvest $20 million in tax savings this year back into its workforce.
 

The Orlando, Fla.-based casual-dining operator said that tax reform would lower its effective tax rate by 600 basis points in its current fiscal year, due to changes made under the Tax Cuts and Jobs Act passed in December.

--

“One of the best investments we can make is in our people,” Darden CEO Gene Lee said in a statement. “This investment will strengthen one of our most important competitive advantages.” - March 15, 2019 Restaurant Business Online article excerpts

 

Massage Envy (locations across Florida) - Increased worker pay and facilities remodeling:

“I’m a manager and a massage therapist at Massage Envy. My employers own seven of Massage Envys. So for me I guess what they’ve done is what’s affected me most. They’ve really reinvested into the company. We’ve got a total overhaul remodel of everything top to bottom, front to back and that’s been great for business. They have given every single person in our clinic an increase in compensation and just have changed the quality of our lives greatly. I mean in the last three years I’ve doubled my salary with what they’ve been able to do and so personally for me how that translates into my life is that you know both of my kids have their own cars so they can drive and I don’t have to share a car with them. I’m able to finish an internship that I’ve been doing in mental health counseling. I had finished my academic requirements a year ago and just couldn’t take off work to finish the internship. I’m in it and I’ll be done in October and I’m not losing any money and not losing any time with my children or anything like that. So it’s been pretty awesome for me. I appreciate it a lot. I know my employers do as well.” - April 17, 2018 Tax Talk Roundtable, Kasey Moore, Manager at Massage Envy

Arthrex Inc. (North Naples, Florida) – Pay raises and $1,000 bonuses:

The company has given all of its U.S. employees either a $1 an hour pay increase or a one-time bonus of $1,000.

In the news release, Schmieding attributed the decision to boost pay for U.S. workers in part to the passage of the Tax Cuts and Jobs Act, which lowered the federal corporate income tax rate and to the deferral of the medical device tax for the next two years nationwide. -- April 27, 2018 Naples Daily News article excerpt

Landmark Reporting, Inc.  (Orlando, Florida) — $500 bonus checks for all three employees:

“I own a small business in Orlando, Florida with three employees. It is a business that I DID BUILD and have owned and operated for over 35 years. After I saw the increase in take-home pay in all of our paychecks after President Trump’s tax cut implementation, I wrote bonus checks of $500 each to my employees. On the Memo line, it’s labeled 'President Trump Tax Cut Bonus.’ — Candy Morgan, owner, Landmark Reporting, Inc.

Crowley Maritime Corporation (Jacksonville, Florida) - Employee bonuses:

Hill, a Crowley employee for more than 24 years, extolled real-world benefits of the tax cuts, including helping her pay for her sons’ college expenses.

Crowley Maritime “used its benefit from tax reform to pay employees bonuses,” Hill said.

“Crowley Maritime is a fantastic company,” she added. “I’ve been there 24 years. I’m very honored to work for such a great company and for the company to benefit from such a great tax opportunity, which they were able to give back to the employees.” - May 29, 2018, Florida Politics article excerpt

Liberty Landscape Supply (Jacksonville, Florida) - Expanding operations and services offered to customers, hiring a new employee:

Mike Zaffaroni calls the newest piece of equipment at his landscaping company in Jacksonville, Florida, his “Tax Cut Truck.”

He had long wanted to expand the services he offers to his customers and says the tax cuts President Donald J. Trump signed into law six months ago were the motivation he needed to buy the $80,000 truck and forklift.

“Without the tax cuts, we’re not so sure it would have been the right move for us financially,” he said.

Under the new tax law, Mr. Zaffaroni will be able to write off the entire cost of the purchase this year. Along with the lower tax rates and other benefits of the law, he says his accountant estimates he’ll save 7 percent to 10 percent on his taxes this year. That’s a big saving for a small company like his, and it’s money he’ll reinvest in his business.

“We’re going to be able to expand, we’re going to add a product line, we’ll be able to deliver more materials than we were able to before,” Mr. Zaffaroni said. “We’ve actually already hired another driver, so that also adds another job.”

I toured Mr. Zaffaroni’s company, Liberty Landscape Supply, soon after he was named Florida’s National Small Business Person of the Year, and just days after the truck was delivered.

“It makes it very real,” he told me. “A lot of America doesn’t really understand the implication these tax cuts have on each individual small business.” - June 29, 2018, White House article excerpt

Cogent Building Group -- the firm builds homes in Santa Rosa Beach, and gave $2,000 bonuses for all four employees.

T.J. Maxx91 stores in Florida – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:

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:

Associates

  • 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

Communities

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

Ryder (Headquartered in Miami, multiple retail locations in Florida) – Tax reform bonuses for all non-incentive bonus eligible employees, totaling $23 million:

In connection with the anticipated benefit of the Tax Act, the Company awarded a one-time cash bonus, estimated to be approximately $23 million or $0.27 per diluted share, to all non-incentive bonus eligible employees of the Company employed on December 31, 2017. The bonus will be paid to eligible employees in February 2018. -- Jan. 29, 2018 Ryder System, Inc. filing

RGF Environmental Group, Inc. (Riviera Beach, Florida) -- $1,000 bonuses:

“We, as a privately held manufacturing firm in Riviera Beach, Florida, will benefit greatly from the Tax Reform act recently passed. Because of this savings, we have given all our employees a $1,000 Bonus (This is in addition to their 2017 year-end bonuses. – Sharon B. Rinehimer, Executive Vice President/General Counsel, RGF Environmental Group, Inc.

Spellex Corporation (Tampa, Florida) -- $1,000 bonuses for all 26 full-time employees:

"I'm the founder and CEO of Spellex Corporation located in Tampa, FL. We're a software development company which I founded in 1988. This is the first time I've done anything like this. I'm hoping there are thousands of companies like mine who gave their employees $1,000 bonuses to show our support for the new tax plan which will ultimately help the middle class." -- Sheldon Wolf, CEO, Spellex Corporation

The Flood Insurance Agency (Gainesville, Florida) -- $1,000 bonuses for 17 full time employees:

“Small businesses represent almost 75% of all jobs in the USA and the new tax laws benefit many those businesses. Their allocation of additional after tax income could be what causes a wave to turn into a tsunami of economic growth that moves the USA to a destiny defined by everyone’s hopes and dreams. 

My hope is that our insurance industry leads the way with both large public insurance corporations and small insurance agencies announcing their plans for leveraging their tax savings toward a bright American future. My hope is that news media does their part by reporting every announcement building awareness of the growing tsunami. 

I want our company to participate in that tsunami. I want our employees to help define that destiny. Our company is a mid-size insurance MGA with approximately $15 million of revenue. On Tuesday December 26th we announced a $1000 bonus for all our full time employees.” – CEO Evan Hecht

CenterState Bank (Davenport, Florida) – $1,000 bonuses to non-officer employees:

CenterState also finds itself competing more with major regional banks for customers and employees, so — following in the footsteps of other leading financial institutions — it is giving $1,000 bonuses to its non-officer employees as a result of the new tax law. About 700 workers, or 60 percent of the company’s employees as of Dec. 31, will receive the bonus, CenterState said in a Jan. 19 filing with the U.S. Securities and Exchange Commission. – Jan. 19 Tampa Bay Business Journal article excerpt

AT&T -- $1,000 bonuses to 13,331 Florida employees; Nationwide, $1 billion increase in capital expenditures.

Fleet Advantage (Fort Lauderdale, Florida) – New options for customers thanks to immediate business expensing in the tax bill:

The changes to the tax law for 2018 as a result of Tax Cuts and Job Act of 2017 have led more fleets to consider vehicle leasing, and many of those are smaller fleets and owner-operators who may have only sought out equipment on the used market previously.

James C. Griffin Jr., COO & CTO of Fleet Advantage, said the company has launched new flexible leasing programs in response to the tax changes to help fleets achieve more balance-sheet benefits.

“We got ahead of the tax changes and have some new lease products that take advantage of the tax changes,” Griffin said. Leases now hit the balance sheet at “net present value,” he said.

In addition to the depreciation aspect of the tax plan, Griffin said the flat 21% tax on corporations has also allowed Fleet Advantage to “do a little more predictable planning for our customers.

“A lot of organizations are looking at this as an opportunity to upgrade their fleets,” he noted. “[And] our model is really starting to resonate, so we’ve seen a huge uptick [in business].”April 30, 2018 FreightWaves article excerpt

Apple (18 Apple store locations in Florida: Altamonte Springs, Aventura, Boca Raton, Brandon, Estero, Fort Lauderdale, Jacksonville, Miami Beach, Miami Brickell City Centre, Miami Dadeland, Miami The Falls, Naples, Orlando Florida Mall, Orlando Millenia, Palm Beach Gardens, Sarasota, Tampa, Wellington) --

$2,500 employee bonuses in the form of restricted stock units; $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing:

     Bonuses:

Apple Inc. told employees Wednesday that it’s issuing a bonus of $2,500 worth of restricted stock units, following the introduction of the new U.S. tax law, according to people familiar with the matter.

The iPhone maker will begin issuing stock grants to most employees worldwide in the coming months, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The move comes on the same day Apple said it would bring back most of its cash from overseas and spend $30 billion in the U.S. over the next five years, funding an additional technical support campus, data centers and 20,000 new employees.

Apple confirmed the bonuses in response to a Bloomberg inquiry Wednesday. – Jan. 17 2018, Bloomberg News article excerpt

     Capital expenditures, etc:

Apple expects to invest over $30 billion in capital expenditures in the US over the next five years and create over 20,000 new jobs through hiring at existing campuses and opening a new one.

Building on the initial success of the Advanced Manufacturing Fund announced last spring, Apple is increasing the size of the fund from $1 billion to $5 billion. The fund was established to support innovation among American manufacturers and help others establish a presence in the US. It is already backing projects with leading manufacturers in Kentucky and rural Texas.

Apple works with over 9,000 American suppliers — large and small businesses in all 50 states — and each of Apple’s core products relies on parts or materials made in the US or provided by US-based suppliers.

Apple, which has a 40-year history in education, also plans to accelerate its efforts across the US in support of coding education as well as programs focused on Science, Technology, Engineering, Arts and Math (STEAM). – Jan. 17, 2018 Apple press release excerpts

Cintas (Multiple locations in Florida) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.

Walmart -- 67,500 Floridians employed at 328 Walmart stores will receive tax reform bonuses and wage increases and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

Lowes 21,000 employees at 123 stores and two distribution centers in Florida. Employees will receive bonuses of up to $1,000 based on length of service, expanded benefits and maternity/parental leave; and $5,000 of adoption assistance.

Home Depot -- 153 locations in Florida, Florida-based Home Depot employees will receive bonuses of up to $1,000.

Starbucks Coffee Company -- (Multiple locations in Florida) -- $500 stock grants for all Starbucks retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants, totaling more than $100 million nationwide in stock grants; 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave. 

U-Haul (Multiple locations in Florida) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Bank of America -- (Multiple locations in Florida) Florida-based employees of Bank of America will receive $1,000 bonuses.

Comcast (Multiple locations in Florida) -- $1,000 bonuses; Nationally, at least $50 billion investment in infrastructure in next five years.

FifthThird Bancorp150 locations in Florida; $1,000 bonuses; base wage will increase to $15 per hour.

Wells Fargo -- 614 bank locations in Florida -- Base wage raised from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over next three years. 

Walt Disney Company -- Florida-based Disney employees will receive $1,000 bonuses and benefit from the nationwide $50 million investment in employee education programs.

Note: If you know of other Florida examples, please email John Kartch at jkartch@atr.org

 

The running nationwide list of companies can be found at www.atr.org/list

Photo Credit: DonkeyHotey/Flickr

More from Americans for Tax Reform


How the Trump Republican Tax Cuts Are Helping Maryland

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, June 29th, 2021, 3:00 PM PERMALINK

Maryland is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:

399,170 Maryland households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Maryland 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.

1,592,190 Maryland 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.

64,180 Maryland 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, Maryland 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 six Maryland utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Maryland businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Arnold Packaging (Baltimore, Maryland) - Increasing employee salaries, purchasing new equipment:

According to Mick Arnold, president of Arnold Packaging, the company reinvested its savings by raising salaries by 4 percent for employees in the manufacturing facility and purchasing more equipment to meet demand.

“We are constantly making reinvestments in our people, not just equipment, not just automation, but in our people,” Arnold said. “Our workforce is critical to our success.” - May 3, 2018, National Association of Manufacturers Shopfloor blog excerpt

Jamison Door (Hagerstown, Maryland) - Employee bonuses, facility expansion, growing workforce by 115%,  investing in new technology:

Jamison Door, which manufactures temperature-controlled doors, has been a family-owned business since 1906. The company’s commitment to the men and women on its shop floor means that every single employee is sharing in the benefits of tax reform.

Jamison’s 120 employees received two bonuses, each equivalent to one week’s salary—first in August, in anticipation of tax reform, and again in February, after the new law took effect.

That is just the beginning: this year, Jamison plans to do even more, offering another raise to its employees.

Jamison Door is also taking advantage of tax reform and using its tax savings to reinvest in its business. That means growing its facilities, investing in new technology and creating skilled jobs in the Hagerstown plant.

Over the next year, Jamison is adding more than 50,000 square feet in new manufacturing space.

“Right now, we’re in the process of adding a significant-sized facility to add different product lines,” added Chairman and CEO John Williams, referencing his company’s plan to expand a product line of high-speed roll-up doors. “It’s a 400 percent increase in plant size.”

“We are spending about $1.5 million on new state-of-the-art equipment in our main plant, which makes foamed-in-place cold storage doors, and more than $3.5 million on the new plant for high-speed roll-up doors. These are significant investments for a company our size, and we feel comfortable making these investments because of the favorable business climate and the benefits of the lower tax rates.”

Expanding the company’s facilities also means Jamison will need more workers, and it plans to increase hiring dramatically. Over the next three years, Jamison plans to increase its workforce by more than 115 percent.

“Tax reform has absolutely made it more feasible to undertake these projects,” explained Williams. “Tax reform is necessary for us to keep expanding and to keep our business strong.” - July 5, 2018, National Association of Manufacturers article excerpt

Columbia Gas of Maryland (Hagerstown, Maryland) – The utility is passing along tax savings to customers:

Tax calculations for our customers’ rates in this filing have been made reflecting the Tax Cuts and Jobs Act of 2017 (TCJA) which was signed into law December 22, 2017. Our proposed rate adjustment reflects the new 21% corporate federal tax rate, which was reduced from 34% under the TCJA effective January 1, 2018. Additionally, customers’ bills started to reflect the new tax rate in April of 2018, and we are currently passing back to customers the difference between taxes collected at the federal 34% tax rate versus the 21% tax rate from January 1, 2018 to March 31, 2018. - April 13, 2018 Columbia Gas of Maryland press release

Washington Gas Light (Washington, D.C.) – The utility is passing along tax savings to customers:

Washington Gas lowered customers' bills earlier this year by passing along federal corporate income tax savings as a result of the Tax Cuts and Jobs Act of 2017. Maryland customers received an annual rate decrease of $14.8 million beginning February 1, 2018, or about $2.16 per month for each residential heating customer. - May 15, 2018 Washington Gas Light press release

Baltimore Gas & Electric (Baltimore, Maryland) – The utility is passing along tax savings to customers:

The Commission, in Order No. 88975, also directed BGE to refund approximately $1.7 million to customers as a result of excess taxes recovered in January 2018, soon after the federal Tax Cuts and Jobs Act of 2017 was implemented in December 2017. The payback must occur as a one-time bill credit within 60 days of the order. - January 4, 2019 Public Service Commission of Maryland document

Potomac Electric Power Company (Washington, D.C.) – The utility is passing along tax savings to customers:

The Settlement results in a base rate decrease of $15,000,000. Although the Company revised its original request of $41,439,000 to $3,252,000, based largely on the impact of the Tax Cuts and Jobs Act of 2017 (“TCJA”), the rate decrease of the magnitude approved by this Order is significant. - May 31, 2018 Public Service Commission of Maryland document

Eastern Shore Natural Gas (Dover, Delaware) – The utility is passing along tax savings to customers:

Additionally, the settlement provides that ESNG is required to further reduce the 
settlement rates to reflect its new federal income tax rate, which will reflect impacts of the federal Tax Cuts and Jobs Act. - March 5, 2018 Public Service Commission of Maryland document

The Potomac Edison Company (Williamsport, Maryland) – The utility is passing along tax savings to customers:

The Company stated that the filing of its base rate case was driven by (i) investments in the electric distribution system to improve service and reliability for its customers; (ii) the desire to pass on to ratepayers the savings from the Tax Cut and Jobs Act of 2017 (“TCJA”) in a manner that is based on up-to-date, fully-vetted revenue needs and class cost allocations; and (iii) revisions to Company Tariffs necessitated by the Company’s divestiture of generation assets and the implementation of electric restructuring policies. - March 22, 2019 Public Service Commission of Maryland document

NorthPoint Development (Baltimore, Maryland) -- The company is building a self-storage unit in an Opportunity Zone created by the Tax Cuts and Jobs Act.: 

It’s not quite as glitzy as a new TopGolf or another concert venue, but a new addition is in the works near the entertainment district planned around Horseshoe Casino.

The parent company of Beyond Self Storage, a Missouri-based firm with about two dozen climate-controlled storage unit buildings in 11 states, is planning a 129,000-square-foot facility at 1541 Ridgely St., city records show.

A LoopNet listing for 1541 Ridgely St. indicates it’s among a package of three available industrial properties, and a marketing brochure from brokerage Lincoln Property Company notes it’s located in a federal opportunity zone. The listing says the properties are under contract; agents with Lincoln Property Company have not responded to messages.

The climate-controlled Ridgely Street storage facility would be a new addition in a slowly burgeoning development wave surrounding Horseshoe Casino. TopGolf is planning to build a new 65,000-square-foot complex several blocks away near Warner and Stockholm streets after closing on the land in March. Construction was due to begin this summer, though the company said last month that it’s paused work amid the Covid-19 pandemic.

Just around the corner, a partnership of developers that includes Caves Valley Partners, has for years been planning a nearly 4,000-square-foot concert venue called the Paramount at 1300 Warner St. Plans presented last year to a city design panel showed an 80,000-square-foot, three-story with ground-level retail and a covered outdoor plaza. -- June 16, 2020 Baltimore Business Journal article

Urban Pastoral (Baltimore, Maryland) -- The company is converting a slaughterhouse into a retail and office hub in an Opportunity Zone created by the Tax Cuts and Jobs Act:

A former South Baltimore slaughterhouse is set to find new life as a retail and office hub in 2021.

The project, to be called Riverside after the surrounding neighborhood, will bring a mix of tenants, including a coffee shop, small specialty grocer, brewery and other retail concepts, to the 34,000-square-foot property at 1900 Light St. The collection of four interconnected buildings was once the Heinz Riverside Abattoir, and most recently housed Wilhide Draperies.

Steve and Cheryl Wilhide have since relocated their drapery business to Frederick Avenue and brought in boutique real estate developer Urban Pastoral to transform the Light Street space. The adaptive reuse project is slated to break ground soon, said Urban Pastoral partners J.J. Reidy and Christian De Paco.

Riverside will add new retail options to a growing corner of the city between Federal Hill and Locust Point. The property, situated at the end of Light Street, also sits at the foot of Port Covington, which is slated to become the site of an 18 million-square-foot, $5.5 billion mixed-use development within the next decade.

There are already about 550 apartment units nearby, and another 650 on the way in the shorter term.

"You have 1,100 housing units, and you can't get a cup of coffee nearby," Reidy said.

The new retail and office hub will cost $8 million to $9 million to develop and will "create something interesting that's a draw" in the middle of an area that has few dining options beyond Hersh's and HomeSlyce, he said. The property is located on the edge of the Cherry Hill opportunity zone and could benefit from opportunity zone credits. -- December 13, 2019 Baltimore Business Journal article

Flying Dog Brewery (Frederick, Maryland) - purchasing new equipment:
 

It's a similar story for Maryland's Flying Dog Brewery. CEO Jim Caruso (who is a donor to the Reason Foundation, which publishes this website) says the tax cuts might not look like much at the consumer level, but they free up a lot of money for businesses to reinvest in their operations.

 

"When you look at this reduction in taxes. That translates to a penny per bottle. It's a small cost per bottle times the number of cases, that adds up pretty quickly," says Caruso, saying his company saved some $300,000 thanks to the tax cuts, which he says has gone toward buying new capital equipment. - November 21, 2018 article excerpt from Reason Hit & Run Blog excerpt

 

Galen Robotics (Baltimore, Maryland) -- The company moved their headquarters from Silicon Valley to Baltimore to an Opportunity Zone created by the Tax Cuts and Jobs Act:

The robot looks like a stout, little filing cabinet with one long arm, a simple-looking contraption that belies the precision of the brain, ear and throat microsurgeries it is designed to improve.

The company formed to develop and market the machine, Galen Robotics, recently moved to Baltimore from Silicon Valley and might represent the future of safer, less-invasive procedures.

"I like to say it will give the surgeons the effect of power steering," said David Saunders, a company co-founder and chief technology officer.

Galen's move to Pigtown, just west of downtown, also kicks off the city's quest to attract significant private investment to businesses in its many federally designated "opportunity zones," distressed areas that come with a federal tax incentive. Baltimore officials are poised to announce that Galen secured the first such investment in a city business after it moved here and some believe the tax benefit could be a bigger boon to businesses than real estate development that has gotten most of the initial attention.

A College Park, Md.-based venture capital fund recently created to invest in opportunity zone businesses gave an undisclosed sum to Galen, part of about $7 million the company has raised so far from investments, subsidies and tax breaks for job creation.

Galen aims to raise $25 million as it ramps up development of the surgical robot, based on technology developed at Johns Hopkins University, and hire more than 100 engineers and other professionals as it seeks federal approval for its use.

Opportunity zones, established by the massive 2017 tax law pushed by President Donald Trump, allow investors to defer or avoid taxes by rolling over investment income into properties or businesses in designated distressed areas.

Ben Seigel, the opportunity zone coordinator at the Baltimore Development Corp., the city's economic development arm, and others expect more money will flow into businesses in the zones than into real estate.

"I do think there is a feeling within the industry and the opportunity zone field over time, if opportunity zones really take off the way we hope they do," Siegel said, "we'll see a lot of investing in operating businesses because generally it's where investors can get bigger returns from growth businesses." -- November 6, 2019 Texplore article

Stonewall Capital (Baltimore, Maryland) -- The company is building an industrial park in an Opportunity Zone created by the Tax Cuts and Jobs Act:

The ambitious, $700 million development of hundreds of acres in Elkton is nearing a start despite the novel coronavirus pandemic, the project's developer said on Monday.
 
"Obviously the project has been affected by the coronavirus pandemic," said Ray Jackson, principal of Monkton-based Stonewall Capital, the lead equity partner in the project. "But we’ve been doing everything through teleconferencing and we do have some on-site work going on now. My partners and I are very bullish."
 
Southfields of Elkton will hold a 250-acre, 3-million-square-foot industrial park near Route 40, built by developer Trammell Crow, that will break ground in the late fall and is expected to open in mid-2021. The project will also have more than 850 residential units, with single-family homes priced between $250,000 and $375,000.
 
The 650-acre mixed-use Southfields of Elkton project was proposed in July and is expected to bring 1,000 new jobs and a huge boost to the tax base of the small town of Elkton and Cecil County.
 
The Town of Elkton approved the project's planned unit development on March 9, and permitting is ongoing. It will be located near the Maryland-Delaware line and is the latest evolution in the rural county that is expanding with industrial, residential and entertainment projects.
 
Also included is 250,000 square feet of commercial and retail space, much of it near the Elk River. A 50-acre sports complex with several playing fields and green space is also planned.
 
Jackson said the project remains on track despite the ongoing pandemic. He said site work is expected to begin in the fall and development will start shortly after that.
 
"We're not stopping," he said. "My team includes multiple professional organizations and they have taken extra precautions to safeguard their employees. This has actually shown me how people can work together as a team toward a common goal, and I have been inspired by the efforts of all involved."
 
Chris Moyer, director of Cecil County's Office of Economic Development, said the project is located in a state opportunity zone, which will offer tax breaks for job creation. Trammel Crow is investing about $250 million into the industrial park, expected to be an e-commerce logistics center. -- March 30, 2020, Baltimore Business Journal Article.

 

Holliday Fenoglio Fowler, L.P. (New Carrollton, Maryland) -- The company announced they are building a multi-housing community in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Holliday Fenoglio Fowler, L.P. (HFF) announces it has arranged construction financing and joint venture equity totaling $65.44 million for the development of The Stella, a 282-unit, transit-oriented multi-housing community located within a designated opportunity zone in New Carrollton, Maryland.

HFF worked on behalf of the developer, Urban Atlantic, to secure a $46.56 million construction loan through TD Bank and $18.88 million in joint venture equity from Bridge Investment Group.

The Stella is located at 3950 Garden City Drive at the New Carrollton Metro Station, which is the terminus of the Orange and Purple lines. Less than five miles outside of Washington, D.C., the opportunity zone project is the second phase of Urban Atlantic's 34-acre, 2.3 million-square-foot New Carrollton Metro redevelopment and will serve as the first multi-housing asset within the master plan. The Stella, which sits on a ground lease, will feature a podium-style design with 282 studio through three-bedroom floor plans totaling 218,692 rentable square feet along with 3,500 square feet of ground-floor retail. Units will offer high-end amenities, including quartz countertops, stainless steel appliances, plank flooring, walk-in closets, nine-foot ceilings and in-unit washers and dryers. Community amenities will include a swimming pool, common outdoor terraces, club room, game room, fitness center, co-working space, private entertaining room and terrace, coffee bar and dog wash station. The project is due for completion in the fourth quarter of 2020.

The HFF debt and equity placement team representing the developer included Walter Coker, Brian Crivella, Jamie Leachman and Evan Parker.

"The Stella represents one of the marquee developments in the region," Leachman said. "The site is located within an opportunity zone and adjacent to the New Carrollton metro station. These factors, coupled with the involvement of a premier developer like Urban Atlantic, drew a tremendous amount of interest from institutional groups looking to capitalize on the new tax laws." -- June 26, 2019 Contify Investment News article

Velocity Companies (Greenbelt, Maryland) -- The company is building a business center that will host a grocery store, smokehouse, apartments, and more, located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Construction is about to get underway on a $250 million Prince George's County development that is expected to bring more than 500,000 square feet of mixed-use to Capitol Heights.

Hampton Park, the redevelopment of the 25-acre Hampton Mall, will include a $35 million, 115,000-square-foot office building slated to house the Prince George's County departments of Health and Human Services, Veteran Affairs and Family Services. That building will also house a 17,000-square-foot senior day center.

...

The project has received numerous federal, state and county designations that should its ease path to viability. It has been designated part of Maryland's Sustainable Communities, as a Primary Investment District and, most recently, as an opportunity zone. -- September 27, 2019 Washington Business Journal article

Washington Property Company (Silver Spring, Maryland) -- The company has announced they are building an apartment complex located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Washington Property Company has broken ground for Solaire 8200 Dixon, a 403-unit, 26-story apartment tower in the Ripley District of  downtown Silver Spring, MD. Clark Construction Company is on track to deliver the first apartments in mid-2022.WPC has partnered with the Cresset-Diversified QOZ Fund to provide equity for the project. This fund is a joint venture between Cresset Partners and Diversified Real Estate Capital, both of Chicago, which earlier this year closed a $470 million fund to invest in real estate projects located in Qualified Opportunity Zones. Solaire 8200 Dixon is one of the seven projects included in the fund. -- April 29, 2020 Yield Pro article

Blue Ocean (Baltimore, Maryland) -- The developer is building an apartment complex located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Maryland-based developer Blue Ocean has announced its acquisition of The Middle River Depot, located in Eastern Baltimore County, Maryland. Middle River Depot is the largest industrial building in the state of Maryland, and is an expansive and historically significant property.

CBRE's Mid Atlantic Institutional Group oversaw the sale of the 2-million-square-foot project to Blue Ocean. "Although there continues to be massive amounts of national, institutional capital flowing into industrial investments in the Mid-Atlantic region, this opportunity was acquired by a local investor who understands the strategic nature of the location, and who will work closely with the community to create value," said Executive Vice President Bo Cashman of CBRE.

At nearly 2 million square feet, the facility is slated to become one of the largest Real Estate Opportunity Zone developments in the Mid-Atlantic and is expected to spur economic development and create thousands of jobs. A MARC train station is located within a couple hundred yards of the property, creating a transit-oriented and sustainable commercial real estate development that is rare in Baltimore County. -- September 27, 2019 Blue Ocean press release

Amtrak (Baltimore, Maryland) -- Amtrak is investing in a redevelopment of Baltimore's Penn Station located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Amtrak officials said Thursday they consider the redevelopment of Baltimore's Penn Station to be "critical" and will continue to move forward on the project even as the railroad company suffers a major financial hit due to Covid-19.

Chairman Anthony Coscia said during a teleconference that Amtrak will likely lose $700 million in adjusted operating earnings due to the pandemic, and it's possible the losses could be greater. Ridership has fallen 95% and Amtrak has temporarily suspended several of its routes while modifying others to deal with reduced demand. Prior to the onset of pandemic, Amtrak had been on track to break even for the first time ever.

Despite the grim outlook, Amtrak executive Stephen Gardner said the government-owned company will continue to move ahead on the long-planned redevelopment of Baltimore's historic train station even as it makes adjustments and reduces expenses.

"There are a core set of essential projects across really all the different dimensions of the company...that are really critical to our long-term strategy and success," said Gardner, chief operating and commercial officer. "We continue to advance those as we can through the environment. Baltimore is one of those."

Gardner said people should expect delays because of supply chain issues, workforce availability and other challenges companies across the U.S. are facing. He also said Amtrak will defer capital improvements that it deems "are not right now critical."

"We remain committed to our big strategic objectives and our important projects," Gardner said. "Baltimore Penn Station redevelopment is a critical one, along with several other station projects that we continue to advance."

The redevelopment of historic Penn Station has been in the works for years. Penn Station Partners, a master development team selected by Amtrak to manage the project, plan to convert the site into a hub in the Station North and Mount Vernon communities. Penn Station is the eighth busiest station in the Amtrak system.

Other plans by Penn Station Partners include developing a residential tower on what today is a flat-surface parking lot at Lanvale and Charles streets, as well as new development on parcels owned by Amtrak near the station. The additions will hold retail, residential and office space.

Bill Struever, CEO of Cross Street Partners, which is part of the development team, said in March the project remained ongoing.

Last year Amtrak announced plans to invest $50 million in improvements to the historic station as part of an overall $90 million investment.

The project was awarded a $3 million Maryland Historic Revitalization Tax Credit from the Maryland Historical Trust and Gov. Larry Hogan has also authorized workforce training and job creation tax credits and property tax breaks as incentives for opportunity zone investment.

Blueprint Local, a fund based at Brown Advisory in Fells Point, announced in February it would provide an undisclosed amount of private capital through opportunity zone funding for the project. -- April 23, 2020 Baltimore Business Journal article

 

Marlin Steel (Baltimore, Maryland) - Increased workforce by 10 percent, new investments in machinery:

At Marlin Steel, which only buys American steel and exports to 39 countries, we have already done just that. We increased our workforce by 10 percent to manage more than $1 million in new USA-made equipment. Tax reform gave us the confidence to make these important investments — investments not just in our company but in the lives of hardworking Marylanders. One of the machines we bought makes products here in Baltimore that we will export to Mexico two times a week.

Our existing employees are also better off, given that tax cuts mean they are taking home more money in their paychecks. It’s a little extra security after years of economic anxiety and uncertainty. One of our employees put the savings toward buying his new house. Some of our new employees hired since tax reform have also achieved important life goals: One bought a car; another moved to a new apartment; and a third is able to pay off debt, support his daughter and move to a new apartment. - June 21, 2018, Baltimore Sun article excerpt

Greenbacker Renewable Opportunity Zone Fund LLC (Capitol Heights, Maryland) -- The company created a solar electric utility company in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Greenbacker Renewable Opportunity Zone Fund LLC announced today that its first solar business, a 3.1-megawatt solar project, has begun commercial operations and is now producing electricity. This marks the first project completed by Greenbacker Renewable Opportunity Zone Fund and the beginning of the fund’s operations. The solar project is located in Capitol Heights, Maryland and is contracted with a wholly-owned subsidiary of WGL Holdings, a public utility company serving the greater Washington DC area. The first-of-its-kind facility in the county is in a qualified opportunity zone that has been vacant for 30 years after it was deemed unsuitable for residential development. The solar project will produce enough energy to power 333 homes and is expected to contribute approximately $1.4 million in total tax revenue to the county over its length of service.

Commenting on the project, CEO Charles Wheeler stated, “Greenbacker is thrilled to announce the completion of the Project.” He went on to add, “Renewable energy assets are commonly built on the marginal land that tends to fall in opportunity zones. These projects provide local tax revenue and jobs and are a natural extension of Greenbacker’s core investing business.”

Prior to the asset reaching commercial operations, Greenbacker executives joined US Senator Chris Van Hollen, Congressman Anthony Johnson, county officials, and coporate partners for a ribbon cutting event. During his address, Senator Van Hollen said, “The private sector has really come together here…This is a win-win-win for consumers, jobs, and for our environment.”

The commercial operation date for the Project was January 14, 2020. -- January 22, 2020 GlobeNewsWire article

Lyon Distilling Company (St. Michaels, Maryland) – The owner said that the distillery used savings from the Tax Cuts and Jobs Act to double locations, create new jobs, and invest in new equipment:

I mean, in the last two years every distillery I know has taken the savings from this tax cut and reinvested in their team, in their equipment, expanded, doubled locations. Lyon Distilling has grown ten times in size alone in the last two years. – Dec. 5, 2019, WMAU radio show.

Danko Arlington Inc. (Baltimore, Maryland) - Employee wage increases, hiring new employees, renovating company facilities, purchasing new equipment:

Danko Arlington and its employees have also benefited from the tax cuts.  Just in the past few months, the company purchased and fully depreciated a new 3-D sand printer in December 2017, provided higher wage increases in January, renovated its seventy-five-year-old pattern shop into a state-of-the-art additive manufacturing center in February, and hired six more workers in March.

Overall the company is looking forward to the expanding economy — including increased funding for defense.  Danko Arlington is not alone. According to a recent survey from the National Association of Manufacturers, optimism among manufacturers registered its second-highest level ever recorded (93.5 percent) in the 20-year history of the survey. - April 12, 2018, Danko Arlington release excerpt

Dixon Valve (Chestertown, Maryland) – $1,000 bonuses:

A Maryland manufacturer will pay $1,000 bonuses to full-time employees as a result of the Republican tax cuts, a move cited by House Speaker Paul Ryan’s press office Wednesday as an example of the tax law working.

Dixon Valve, a company in Chestertown that makes hose fittings and accessories, said the bonuses were a “direct result” of the tax overhaul and regulatory relief.

Hundreds of companies have announced bonuses, raises or other benefits for workers tied to the tax overhaul, according to the anti-tax group Americans for Tax Reform.

Dixon Valve’s announcement stands out, though, because it is one of the companies that Ryan visited in October as he was trying to build support for the massive legislation. – March 28, 2018 Washington Examiner article excerpt

Sprouts Farmers Market (Ellicott City, Maryland) – Pay raises and enhanced employee benefits:

The company also said it plans to use about one third of the savings from the recently-passed tax reform for “investments” in employees.

“to ensure we remain in a leadership position to attract the right talent, we will further invest in our team members by improving pay and improved benefits such as healthcare and expanding maternity leave,” Maredia said. “We will invest an additional $10 million, or approximately one-third of our tax savings, for our team members in 2018. – Feb. 23 2018, Produce Retailer article excerpt

Prudential Financial (Baltimore, Maryland) – The company invested into the $150 million mixed-use project near the Johns Hopkins Bayview Medical Center that will host a variety of stores and businesses.

“In one of the city’s first Opportunity Zone deals, Prudential Financial invested in the $150 million Yard 56 mixed-use project across from Johns Hopkins Bayview Medical Center in East Baltimore, not far from the booming neighborhoods of Brewers Hill and Canton.

Across Baltimore and at the state level, elected officials have praised Opportunity Zones as a needed boost for a city where investment funds aren’t always easy to come by, particularly in some of the neighborhoods where projects are popping up.” – August 7th, 2019, Baltimore Sun

"The insurance and investment management firm said Friday its impact investments group would put an undisclosed amount of money into the first phase of Yard 56, across Eastern Avenue from Johns Hopkins Hospital’s Bayview Medical center. In its $77 million first phase, Yard 56 will have 100,000 square feet of offices and more than 80,000 square feet of shopping, with tenants Streets Market grocery store, LA Fitness, Chipotle, the Brass Tap craft beer bar, Top Coat and Panda Express," – January 11, 2019, Baltimore Sun.

Reliable Contracting Co. (Millersville, Maryland) – The company's president says that he plans on using savings from the Tax Cuts and Jobs Act to invest in new heavy equipment such as dump trucks, a backhoe, a bulldozer and a loader:

In Millersville, Md., Reliable Contracting Co. President Jay Baldwin believes the new tax structure “is going to be of great value. One hundred percent depreciation on equipment in year one, things like that make a lot of difference.”

In Baldwin's case, he and his executives so far this year have authorized spending more than $5 million on heavy equipment, including 10 dump trucks, a backhoe, a dozer and a loader.

It's almost too much of a good thing. Baldwin said the company is prepared to invest even more in equipment, but is having trouble finding it.

“We can't get the equipment. Manufacturers can't make them as fast as we want them,” he said.

Reliable Contracting is a $100 million-a-year company still recovering from the collapse of the construction economy 10 years ago. – Aug. 10, 2018, Construction Equipment Guide.

Turbohaul (Annapolis Junction, Maryland) - Purchased new equipment:

“We desperately needed to invest in equipment. For years now I have an aging fleet and have just been very hesitant to pull the trigger on that investment because of the economic climate and the regulatory climate that we are in, tax climate that we’re in. So it was a real shot in the arm to us to get this tax bill passed and I’m happy to report that over the next 18 months we’ll be investing over $2 million in new trucks and equipment for our locations.”

“But what’s even better for me really than trucks…is the effect it has on our people. Most of our people, it’s the first job that they get. A lot of guys and gals that come to work for us, they’re right out of high school. It’s all they’ve got as a high school diploma maybe. We take them, we train them, we give them opportunities and real professional environment and a company, and they’re able to make a real wage and provide for their families. A lot of them from disadvantaged backgrounds and communities and so on. These new trucks they not only will look great and, you know, haul things great, but they’ll be able to be more efficient in their jobs and we incentivize everybody from the starting labor on up through the driver. …we’ve estimated that they have the potential now with these new trucks and equipment to add about $5,000 to their salaries to their wages for this year based on just averages of what they will likely make with these new trucks and equipment that will make them more efficient more safe more comfortable you know in their jobs.” - April 17, 2018 Tax Talk Roundtable, Kevin Daly, Founder of Turbohaul

McCormick & Company (Sparks, Maryland) – $1,000 bonuses:

McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, announced plans to reinvest a portion of its incremental tax savings from the recent U.S. Tax Act into one-time $1,000 bonus payments for eligible U.S. hourly employees in May. The company also announced plans to accelerate hourly employee wage increases to ensure more competitive compensation and attract, develop and retain top talent within the organization. The changes will benefit the majority of the company's U.S. based hourly employees.

"At McCormick, we take a long-term view of the people in our organization. We want McCormick to be a great place for people to come work and have engaging and fulfilling careers. The passage of the U.S. Tax Reform Act provides us an opportunity to demonstrate the Power of People, and for the company to show its commitment to the 2-for-1 spirit," said Lawrence E. Kurzius, Chairman, President and CEO of McCormick. – March 27, 2018 McCormick & Company, Inc. press release

St. John’s Properties Inc. (Baltimore, Maryland) – $1,500 bonuses:

Developer St. John Properties, Inc. is awarding its employees a one-time cash bonus of $1,500 in response to the recent federal tax plan passed by Congress.

The Baltimore-based real estate development and management company said Monday its 180 workers would receive the bonus this month in their paychecks as a result of corporate tax savings allocated under the Tax Cuts and Jobs Act of 2017. – Feb. 12, 2018 Baltimore Business Journal article excerpt

Comfort Inn (Cambridge, Maryland) (Neema Hospitality Franchise) - Renovations:

$400,000 investment in renovation and upgrades due to tax reform - August 3, 2018 phone call with Americans for Tax Reform

Sinclair Broadcast Group (Hunt Valley, Maryland) -- $1,000 bonuses for 9,000 employees:

“We are grateful to our president and legislature for passing the landmark Tax Cuts and  Jobs Act and are excited about the benefits it will provide for our country’s economy, our Company, and our employees,” stated Chris Ripley, Sinclair’s President and CEO.“We recognize that our employees are our most valuable resource, truly appreciate their combined achievements for our Company and look forward to a very bright future.” – Dec. 22, 2017 Sinclair Broadcast Group press release

Harford Alarm Company (Bel Air, Maryland) - $1,000 bonuses for all 13 employees.

Apple (Retail locations in Annapolis, Bethesda, Columbia, Towson) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

AT&T -- $1,000 bonuses for 1,521 Maryland 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

STERIS Corp. (Maryland locations in Rockville and Timonium) -- $1,000 bonuses totaling $7 million for non-executive U.S. -based employees:

Like many companies, the recent tax reform in the U.S. will result in significant additional earnings for STERIS to strategically grow our business and return value to Customers, employees and shareholders.  One of our first actions on that front will be a one-time special discretionary bonus of $1,000 to all U.S. employees other than senior executives. -- Feb. 7, 2018 STERIS plc press release

Dayton T. Brown Inc. (Lexington Park, Maryland) -- $400 bonuses:

A small Bohemia company is following the lead of large corporations that are passing on some expected savings from tax reform to employees in the form of bonuses.

Dayton T. Brown Inc., an engineering and testing company, is giving each of its roughly 210 employees a $400 bonus, Steve Marini, chief financial officer, said Friday.

President Donald Trump signed the tax overhaul bill into law Friday. The bill lowers the corporate tax rate in 2018 to 21 percent from 35 percent.

All of Dayton T. Brown’s full- and part-time employees will receive the bonuses, likely in January, Marini said.

“We’re going to save a significant amount of money on this new tax law and . . . certainly, we’re nothing without our employees,” Marini said.

The inspiration for the bonus was AT&T’s announcement Wednesday that it was giving its employees $1,000 bonuses, Marini said.

Dayton T. Brown, founded in 1950, is a private company that primarily serves the aerospace and defense industry. Its largest customers are the U.S. Navy, Sikorsky Aircraft Corp. and Northrop Grumman.

It has 170 employees in Bohemia. The rest work in Shelton, Connecticut, and Lexington Park, Maryland. -- Dec. 22, 2017 Newsday article excerpt

Best Buy -- 32 locations in Maryland; $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.

Cintas (Multiple locations in Maryland) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

Great Southern Wood Preserving, Inc. (Hagerstown, Maryland) -- Significantly increased employee benefits: lower healthcare costs, more paid time off, scholarships, and more:

Great Southern Wood Preserving, Incorporated, has begun an active and ongoing process to increase employee benefits by reinvesting its tax savings in its people, the company has announced. The company expects full implementation to take place in 2018.

In late 2017, Congress passed and the President signed into law legislation providing significant tax breaks for corporations. Across America, many companies have chosen a variety of options for applying these savings, such as providing one-time bonuses to employees, increasing charitable giving and reinvesting in facilities upgrades.

For its part, Great Southern Wood will make investments on an ongoing basis to lower healthcare costs for eligible employees, allow employees to accrue more paid time off based on length of service, develop scholarships for dependents of employees and enhance other benefits going forward.

“I’m very pleased that every employee across the company will see the results of the change in tax laws,” said Jimmy Rane, Great Southern Wood’s founder, president and CEO. “The success we’ve enjoyed as a company comes from every one of us working hard and doing our part, and I can’t think of a better way to apply our tax savings than by further investing in benefits programs for our employees. We strive to be an employer that draws the best and brightest to our company, and we believe that providing stronger benefits is essential to this continuing effort.”

Great Southern employs almost 1,200 at locations in eleven states. [Texas, Missouri, Arkansas, Georgia, Alabama, Mississippi, Louisiana, Pennsylvania, Virginia, Maryland, Florida] -- March 29, 2018 Great Southern Wood Preserving, Inc. press release

Wal-Mart –  60 locations in MarylandWalmart employees are receiving tax reform bonuses of up to $1,000; Nationally, base wage increase for all hourly employees to $11; expanded maternity and parental leave; $5,000 for adoption expenses.

Home Depot -- 41 locations in Maryland, bonuses for all hourly employees, up to $1,000

Lowe's -- 4,000 Maryland employees at 28 stores and one distribution facility -- Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (11 locations in Maryland) – Tax reform bonuses to employees.

Starbucks Coffee Company (257 locations in Maryland) –$500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

T.J. Maxx – (25 locations in Maryland) – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:

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:

Associates

  • 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

Communities

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

U-Haul (Multiple locations in Maryland) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Chipotle Mexican Grill (Multiple locations in Maryland) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.

Comcast (Multiple locations in Maryland) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.

Bank of America (155 branch locations in Maryland) -- $1,000 bonuses.

McDonald’s (370+ locations in Maryland) – 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

Wells Fargo – 81 banks in Maryland; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over next three years.

Note: If you know of other Maryland examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

 

More from Americans for Tax Reform


How the Tax Cuts and Jobs Act is Helping Indiana

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, June 29th, 2021, 1:00 PM PERMALINK

Indiana is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:

513,700 Indiana households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Indiana 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.

2,410,540 Indiana 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.

106,750 Indiana 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, Indiana 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 seventeen Indiana utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Indiana businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

AndyMark, Inc. (Kokomo, Indiana) – This mechanical and electrical parts supplier is expanding and hiring thanks to tax reform:

Andy Moser, president and owner of AndyMark, which operates from a facility on North Washington Street and manufactures and distributes mechanical and electrical parts for the competitive robotics market, said savings from the tax cut has accelerated his plans to hire more workers.

He said the company currently employs 25 full-time workers and up to 30 part-time and seasonal workers. Now, Moser anticipates doubling his workforce in the next five to 10 years.

“I think the tax bill is going to accelerate our growth,” he said. “We want more diversity with our business and more vertical integration, which requires more staff, and the tax cut its going to accelerate all that.”Jan. 14 2018, Kokomo Tribune article excerpt

Old National Bancorp (Evansville, Indiana) - Increased 401(k) match to 75% of the first 4% contributed into the Plan, and 50% of the next 4% contributed into the Plan, for a total maximum match of 5% (previously matched 50% of the first 6% contributed into the Plan, for a total maximum match of 3%) Accessed August 31, 2018, American Bankers Association “Tax Reform Allows Banks to Invest in Employees and Communities” list

BWX Technologies, Inc. (Mt. Vernon, Indiana) -- Hiring more than 170 new employees because of tax reform. The company is also investing $210 million in Indiana and Ohio thanks to tax reform:

BWX Technologies, Inc., a supplier of nuclear components and fuel to the U.S. government, is hiring more than 170 new employees and further expanding its operations across three manufacturing facilities in Ohio and Indiana over the course of the next four years, investing approximately $210 million in these two states as a result of tax reform.

“Due to tax reform, we saw a favorable impact to our tax rate of about 8 to 10 percent,” said Rex Geveden, BWXT’s president and chief executive officer. “This has resulted in significant cash savings that we have used for various needs, including reinvestment of capital into our business and hiring additional employees for future growth.” -- July 22, 2019 National Association of Manufacturers Shop Floor Blog

Albanese Confectionery (Merrillville, Indiana) – Up to $2,000 bonuses annually for as long as tax reform stays in effect, expanded parental leave benefits:

Employees of Albanese Confectionery, an Indiana-based candy manufacturing company, have received up to a $2,000 Tax Reform Bonus. The bonuses were determined by an employee’s length of service but even brand-new hires received $150. The best part, this bonus will happen ANNUALLY as long as the Tax Reform Bill stays in effect. Employees can expect their ANNUAL Tax Reform Bonus every January.

“Taxes are complicated. With the new tax plan we are able to take a giant leap in investing in the things that matter. You matter. It’s just that simple.” Officer Tess Albanese said to employees during their meeting on January 16th.

Albanese Confectionery also expanded their benefits to include new programs such as paid maternity and paternity leave. – Albanese Confectionery press release

Cardinal Manufacturing Company, Inc. (Indianapolis, Indiana) -- employee raises, bonuses, and profit sharing distributions:

Cardinal is the leading manufacturer of Interior Signage in the Midwest.  We are pleased
and proud to announce our small business is rewarding our (17) Team Members at this time in 2018:  Profit sharing Bonuses for those enrolled in the plan, bonuses for those new employees that are not yet eligible to enroll, and an average pay increase of over $1.00 per hour, across the board, to our fantastic team. Cardinal will also use the additional funds available from the new tax cuts to invest in our Company’s growth and development. -  August 13, 2018, Laura Mulligan, President of Cardinal Manufacturing Company Inc.

 

Blue Harbor Development (Michigan City, Indiana) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act.: 

A few months ago, 113 York St. in Michigan City was a vacant, dilapidated building in the historic Elston Grove neighborhood.

Built in 1871, the two-story masonry structure served as a storage and distribution facility for the P.H. Zorn Brewing Co. It featured exposed brick, an archway, wooden beams and other 19th century characteristics, and 12,000 square feet of space.

It's been vacant since the 1970s. Not anymore.

She said the project, known collectively as The Barrelhouse, is the first Opportunity Zone investment in the area - Elston Grove was declared an Opportunity Zone in 2018.

It also fits her company's mission to create "value-added" properties, and to renovate and protect buildings with historic value in Michigan City and surrounding areas.

And the opportunity zone designation created more incentives.

Michigan City created three opportunity zones under the federal Tax Reform and Jobs Act of 2018. The goal is "to encourage economic growth and investment in designated distressed communities by providing federal income tax benefits to taxpayers who invest in business located within these zones," said Clarence Hulse, EDCMC executive director.

According to the EDCMC, benefits to developers include:

A temporary deferral on the payment of existing capital gains tax until the end of 2026, or the year the Opportunity Fund investment is sold or exchanged if under 5 years

Temporary tax deferral plus a 10 percent reduction on capital gains taxes owed if the asset is held for a period of five to seven years

An additional 5 percent reduction on capital gains taxes owed if the asset is held for a period of seven to 10 years (15 percent total)

A full tax exemption on investments provided the investor stays for 10 years or longer.

"There's a lot of excitement over this, a lot of excitement right now for what's going on here." -- June 11, 2020 The News-Dispatch article

Eli Lilly (Indianapolis, Indiana) - Opened a new research facility, plans to create 100 jobs, as well as invest $400 million in manufacturing facilities.

The latest tax reform win comes from Indiana, where pharmaceutical manufacturer Eli Lilly and Co. recently opened a new $75 million research facility in Indianapolis. The company’s CEO credited tax reform and other pro-growth policies that helped make it possible.

“Congress and this (presidential) administration have enhanced our ability to acquire and develop U.S.-born innovation,” Dave Ricks, chairman and CEO of Lilly, said in a statement. “The tax reforms they’ve adopted place U.S. companies like Lilly on a level playing field with our global peers.”  - July 9, 2018, National Association Of Manufacturers Shopfloor blog excerpt

Eli Lilly and Company plans to create 100 new jobs by investing $400 million in manufacturing facilities at its Lilly Technology Center campus in Indianapolis. 

The company announced they plan to invest the money in enhancements to existing manufacturing facilities used to make insulin and other diabetes medications, and initial capital investments to manufacture future medicines, according to a press release from the company. 

“These investments demonstrate Lilly’s commitment to our manufacturing footprint in Indiana and the United States, and have been made possible by the tax reform measures passed by Congress in 2017,” David A. Ricks, Eli Lilly’s chairman and chief executive officer, said in a press release. "This is crucial for us to continue to advance our state’s economy and drive future investment – adding high-tech jobs and facilities that keep Indiana competitive in the global marketplace.” -- Nov. 20, 2019 The Indy Channel

TWG Development (Seymour, Indiana) -- The company is building an affordable apartment complex that will be located on a Opportunity Zone created by the Tax Cuts and Jobs Act: 

A developer is taking steps to build a 54-unit apartment complex in Seymour in an effort to provide more affordable housing and attract more workers to fill available jobs at businesses.

The proposed three-story building will consist of two- and three-bedroom units and target families making an annual salary of $30,000 to $40,000, said Sam Rogers with TWG Development in Indianapolis.

Rogers provided details about the $9.7 million project, including its location, to city officials during a city council meeting Monday night.

The apartments are to be built in a vacant grassy lot along Miller Lane behind the Poynter Ford auto dealership. The property is located in Seymour's Opportunity Zone, which is a federally designated area targeting low-income areas for development. -- July 24, 2019, The Tribune Article.

Dora Hospitality Group (Indianapolis, Indiana) -- The company is bringing a new hotel that will be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

The new owner of the iconic King Cole building at 1 N. Meridian St. plans to turn the 104-year-old edifice into a hotel, following the lead of several other downtown building owners.

On the heels of the King Cole news came an announcement from Fishers-based Dora Hospitality Group that it's teaming up with the owner of Shapiro's Delicatessen to build a 118room, six-story Intercontinental-branded hotel on the south side of downtown at Meridian and Sycamore streets.

Details about the King Cole project are scarce, but plans filed with the city describe the project as "King Cole building hotel," and a renovation permit issued by the city notes interior demolition.

The building owner is Indy Propeo LLC, which bought the building in January from West Coast Properties LLC for $3.9 million.

Several tenants of the 11-story, 1915 building told IBJ they have either already moved out or have been asked to vacate by the building's owner.

The building owner's address is the same as the Chicago address for The Gettys Group, a hospitality-industry developer that works with more than a dozen hotel brands, including Ritz-Carlton, Marriott, Hilton Worldwide, Hyatt, Radisson and Holiday Inn.

The Gettys Group declined to comment about the King Cole project.

The hotel to be built across from Shapiro's Delicatessen by Dora and Shapiro will mark the debut of InterContinental Hotels Group's Even Hotels brand in Indianapolis.

To be completed in fall 2020, the hotel is being built on land owned by the Shapiro family. The land is part of an Opportunity Zone established by the state, a designation that will provide tax breaks to the investors.

Developers say the hotel will offer a full gym, a glass enclosed media and meeting room, a piano, and wellness amenities. It also will have an open-air bar and what it calls an "unplugged area," where guests can play board games as well as eat and drink. -- August 30, 2019 Indianapolis Business Journal article

Waypoint Residential (Jeffersonville, Indiana) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Waypoint Residential, a US-based real estate investment management firm, has unveiled plans to develop a multifamily property, dubbed Walcott Jeffersonville, in Jeffersonville, Indiana.

To be located in the Old Jeffersonville Historic District opportunity zone, the 214-unit, Class A development will feature a mix of studio, one- and two-bedroom units.The residential development will be located in Historic Downtown Jeffersonville directly across the street from the Big 4 Station Park. It will benefit from the on-going revitalisation of Jeffersonville's downtown and waterfront, which includes new restaurants, bars, boutiques and the Riverfront floating amphitheatre.Furthermore, the Big Four Bridge offers easy access to the Kentucky Center for the Performing Arts and the hot NuLu and Butchertown neighbourhoods across the river in Louisville, Kentucky.Waypoint Residential CEO Scott Lawlor said: "The Walcott Jeffersonville is our second investment in the greater Louisville MSA, and our first in Jeffersonville."The City of Jeffersonville's revitalization strategy, in the broader context of a diverse and growing economy in the MSA, presented a compelling investment opportunity. It is a deal we had under contract before the opportunity zone designation, which is an added benefit."The project will also include luxury amenities, such as a resort-style pool and a fitness centre, an Internet café, an indoor-outdoor rooftop terrace overlooking the park and river, an automated parcel system and a pet spa.Waypoint Residential chief development officer Eric Hade said: "The Walcott Jeffersonville is ideally located in the heart of the revitalization of Historic Jeffersonville with doorstep access to the dynamic, emerging live-work-play environment on the Indiana side of the Ohio River, while providing convenient access to the employment, recreational and entertainment options across the river in Louisville."The Walcott will provide a ‘best of both worlds' luxury housing solution in what we feel is one of the most exciting areas along the Ohio Riverfront."Construction of the project is targeted for completion in mid-2020.With six offices across the US, Waypoint Residential acquires and develops conventional multifamily, student housing and senior housing properties throughout the nation. -- January 24, 2019 press release

Economic Development Corp. (Michigan City, Indiana) -- The company is building a 52-unit condo building located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

 If you've ever dreamed of a lakefront home on Lake Michigan, a developer is bringing more options to the market.

Washington Landing Condos is building more waterfront condos with sweeping views of Lake Michigan and a "signature restaurant" in Michigan City.

Construction of the new 100 Washington Landing condo building is expected to start this fall.

The 52-unit condo building in downtown Michigan City will stand five stories tall and will be located on the edge of Washington Park, within walking distance of the beach, marina, Washington Park Zoo and other destinations.

It will be west of the existing row of lakefront housing that flanks Trail Creek as it empties into Lake Michigan. The developers say the project's "modern, sleek and simple design maximizes the stunning lake views as the main attraction."

Jenilee Haynes Peterson, economic development manager for Economic Development Corp. Michigan City, said it will be the first new waterfront housing to be built along the Lake Michigan shoreline in Michigan City in at least a decade.

"There's a pent-up demand," she said. "They just started selling pre-sales last week, and sold the seven units they had up for presale right away."

All the units have lake views. They're all 1,000 square feet with two bedrooms and two bathrooms.

"I am excited at this level of investment for Michigan City," EDCMC Executive Director Clarence Hulse said.

"This caliber of project is definitely raising the bar and is the first of many new projects coming to Michigan City. Having progressive leadership, Opportunity Zone and creative strategies to attract investors will keep Michigan City at the forefront for new investments." -- April 10, 2019 NWI Times article

Family Express (Valparaiso, Indiana) -- Base wage raised to $11 per hour:

Valparaiso-based Family Express, which has 70 convenience stores across Indiana and is in the process of building 10 more, is bumping its starting wage to $11 an hour.

The 43-year-old convenience store chain is raising entry-level pay by $1 an hour, after pre-empting national retailers like Walmart with above-market starting wages in April 2015. Family Express said it was boosting pay because of the tax cuts that reduced the corporate tax rate from 35 percent to 21 percent and as a bid to recruit quality employees and reduce turnover.

“We feel obligated to pass on a significant portion of the tax savings to our staff," Family Express President and CEO Gus Olympidis said. -- Feb. 5 The Times of Northwest Indiana article excerpt

Hoosier Park Casino (Anderson, Indiana) - Employee bonuses:

“a company in my district, one of the larger employers, Hoosier Park Casino, all employees received a $500 bonus after the Tax Cuts & Jobs Act was announced” - June 28, 2018, Rep. Susan Brooks statement on U.S. House Floor

Cobblestone Inn and Suites (Brookville, Indiana) -- The hotel opened up in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Brookville, IN—Thursday, the groundbreaking ceremony for the Cobblestone Inn and Suites was held in Brookville on the future site, located at 9135 US 101.

Jenny Wilz, Major investor of Cobbles Stone Inn and Suites stated that the venture was all started when Tourism conducted a feasibility study for the community to see if Brookville and Franklin County could support the need for a hotel and then an opportunity zone grant became available. This is when Jenny Wilz along with her husband Mick, of Brookville, started to express their interest in investing in a hotel for the town.

Cobblestone came for a visit to Brookville in January of 2019 to look for sights. The final site was not on the original list of sites for the hotel, but it became the perfect option according to Wilz.

According to Brian Wogernese, President and CEO of Cobblestone Hotels, the Brookville location will be a 2 story, 45 room facility. The entrance will be in the center of that facility. Other amenities will include overflow parking for boats, a gift shop for forgotten items, and a bar with hot breakfast daily. Currently, the hotel is slated to open in early July of 2020. -- October 25, 2019 WRBI article

Cobblestone Inn and Suites (Brookville, Indiana) -- The hotel opened up in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Brookville, IN—Thursday, the groundbreaking ceremony for the Cobblestone Inn and Suites was held in Brookville on the future site, located at 9135 US 101.

Jenny Wilz, Major investor of Cobbles Stone Inn and Suites stated that the venture was all started when Tourism conducted a feasibility study for the community to see if Brookville and Franklin County could support the need for a hotel and then an opportunity zone grant became available. This is when Jenny Wilz along with her husband Mick, of Brookville, started to express their interest in investing in a hotel for the town.

Cobblestone came for a visit to Brookville in January of 2019 to look for sights. The final site was not on the original list of sites for the hotel, but it became the perfect option according to Wilz.

According to Brian Wogernese, President and CEO of Cobblestone Hotels, the Brookville location will be a 2 story, 45 room facility. The entrance will be in the center of that facility. Other amenities will include overflow parking for boats, a gift shop for forgotten items, and a bar with hot breakfast daily. Currently, the hotel is slated to open in early July of 2020. -- October 25, 2019 WRBI article

Quake Manufacturing (Fort Wayne, Indiana) – $1,000 bonuses, enhanced insurance benefits, gym memberships:

Quake realized there was some extra money after Trump’s tax plan took over. So he decided to give it back to his 12 employees. “I’ve managed to add long-term disability, short-term disability, dental insurance.”

Plus everyone gets a $1,000 bonus and a paid gym membership. A nice surprise on their next check. “I want to reward the guys. Guys have been working hard. A lot of guys have been putting in a lot of overtime. I just don’t see any reason not to kick back to them.” Feb. 21 2018, Wane.com article excerpt  

1st Source Corporation (South Bend, Indiana) -- 10 shares of stock; base pay increases:

1st Source Corporation announces important investments in its people as a result of record performance in 2017 and new tax legislation opportunities. These new investments include the following:

  • The issuance of 10 shares of 1st Source stock currently valued at $500.00 in early 2019 (which must be held for three years) to all employees who were active with the company December 31, 2017 and are also active with the company on December 31, 2018.
  • An additional performance award base pay increase of $500.00 to eligible colleagues.
  • A significant increase in the company's higher education tuition reimbursement program to an annual benefit of $6,000 from $3,000.

Christopher J. Murphy III, Chairman and CEO stated. "We believe in shared ownership among all our colleagues at 1st Source. We also believe the new tax act gives us additional funds to invest in the company's long term future. -- Jan. 31, 2018 1st Source Corporation

First Farmers Bank & Trust (Converse, Indiana) – minimum bonus of $750 to each full time employee; base wage will rise by $2.50 per hour:

In response to the recently passed legislation affecting corporate tax, Gene Miles, President and CEO of First Farmers Bank & Trust recently announced a new corporate wage and community support program that commits to four points of emphasis.

1.      Raise the minimum hourly starting wage by $2.50 for all new FFBT employees.
2.      Provide a minimum year-end bonus of $750 annually to all full time FFBT employees.
3.      Invest a minimum of $250,000 annually to community development and support of local branch markets.
4.      Invest a minimum of $150,000 annually to FFBT employee development and education.

“With this special opportunity, we are pleased to further our commitment to our community and to our people. Since 1885, First Farmers has prided itself in supporting the communities in which we serve and our employees are the primary reason for our corporate success and growth”, Gene Miles, President and CEO, First Farmers Bank & Trust. – Dec. 26, 2017 First Farmers Bank & Trust statement

First Merchants Corporation  (Muncie, Indiana)$1 per hour wage increase for hourly employees; $500 bonuses for full-time employees, excluding senior management; pro-rated bonus for part-time employees:

First Merchants Corporation (NASDAQ:FRME) announced today that it will raise the wage paid to hourly employees by $1 per hour as a result of the Tax Cuts and Jobs Act of 2017 signed by President Trump in Dec. 2017.

Additionally, as a reward for the company’s strong 2017 performance, all associates, excluding senior management, will receive a $500 one-time cash bonus. Part-time associates will receive a pro-rated share.

The compensation investments will impact nearly 90 percent of First Merchants’ 1,700 employees and will be in addition to the company’s existing incentive programs and annual merit increases.

“My colleagues at First Merchants provide superior service to our clients and devote themselves to the communities we serve every day,” said First Merchants President and CEO Michael C. Rechin.  “We are proud to share the savings provided by the tax reform package to reward their hard work and dedication with an increase in compensation.” – Jan. 16, 2018 First Merchants Corporation press release

MainSource Financial Group (Greensburg, Indiana) – Base wage raised to $15 per hour:

MainSource Financial Group (NASDAQ: MSFG) will raise the starting pay and minimum hourly rate to $15 an hour effective immediately for all of its non-exempt, non-commissioned employees. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.

Approximately 1,000 associates are employed throughout the MainSource footprint in Ohio, Indiana, Illinois and Kentucky. The pay increase will affect over 200 employees.

Archie M. Brown, Jr., President and CEO, stated, "The recently passed tax legislation is anticipated to create significant savings for our company. We are pleased to direct a portion of this savings back to many of our employees with a meaningful increase in pay." – Jan. 3, 2018 MainSource Financial Group press release

Mutual Bank (Muncie, Indiana) -- $750 bonuses for all non-executive employees; hourly employees will also receive a $.50 pay raise per hour:

CEO Dave Heeter said,” When an event like this occurs, a significant consideration is determining if the increased earnings resulting from the reduction in taxes, should be shared with a company’s constituents.” Heeter continues, “In the anticipation that the change in the tax law will provide an opportunity for greater earnings moving forward, we feel that sharing a portion of those earnings with our outstanding staff is appropriate.”

In the first quarter of 2018, MutualBank will distribute a $750 one-time payment for all full-time and part-time employees except for the Executive Management Team. Additionally, all non-exempt employees will receive a $0.50 increase in their hourly wage.  -- Jan. 20, 2018 MutualBank press release

Fifth Third Bancorp 123 locations in Indiana; Nationally $1,000 bonuses for 13,500 employees and base wage raise increase to $15:

Newly passed tax legislation includes a reduction in corporate tax rates designed to spur economic growth. Carmichael said the tax cut allowed the Bank the opportunity to reevaluate its compensation structure and share some of those benefits with its talented and dedicated workforce.

Carmichael said the higher wage is an important step to help support individuals, their families and the communities in which we operate. Fifth Third has a history of investing in its 18,000 employees.

Once the legislation is signed into law, nearly 3,000 hourly employees will see their pay increase to $15 an hour. The one-time $1,000 bonus is expected to be distributed by the end of the year, assuming the president signs the bill before Christmas. Senior managers and executive leadership are excluded from this compensation.

“It is good for our communities, employees and Fifth Third Bank,” [President and CEO Greg] Carmichael said. – Dec. 20, 2017 Fifth Third press release

First Financial Bancorp -- 12 bank locations in Indiana, base wage raised to $15 per hour; $3 million charitable contribution:

First Financial Bancorp (Nasdaq: FFBC) will raise the starting wage for all new and existing hourly associates to $15 an hour effective immediately. Additionally, the bank has made a $3 million contribution to its newly established charitable foundation. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.

First Financial strives to provide fair and competitive salaries and benefits to its associates. Approximately 1,335 associates are employed throughout the First Financial footprint in Ohio, Indiana and Kentucky. The increase will affect 220 of these associates.  – Jan. 3, 2018 First Financial Bancorp press release

Centaur Gaming LLC (Indianapolis, Indiana) – $500 bonus:

Centaur Gaming is reinvesting some of the money it will be saving under the Tax Cuts and Jobs Act back into its employees by giving them a $500 bonus. 

The president of the company, Jim Brown, announced at a meeting Wednesday morning that all full, part and seasonal employees would be receiving a one-time check for $500. The company will also be paying all taxes and the employee and company 401K portions of those bonus checks. – March 7 2018, WRTV article excerpt

Aqua Indiana, Inc. (Jeffersonville, Indiana) -- the utility will pass along tax cut savings to customers:

The tax rate embedded in the utility's recurring rates is 35%. The utility requests to reduce its recurring rates to reflect the new 21 % tax rate per the Tax Cuts and Jobs Act of 2017. - May 16, 2018 Indiana Utility Regulatory Commission order

Northern Indiana Public Service Company (Merrillville, Indiana) -- the utility will pass along tax cut savings to customers:

Merrillville-based Northern Indiana Public Service Co. announced Monday it was changing its request that was submitted in September to the state utility commission. The change reduces the rate increase NIPSCO is seeking from nearly 23 percent to about 19 percent.

The company says that would mean about $26 million less a year in increased billing charges to its some 820,000 gas customers. - January 29, 2018 Daily Herald article excerpt

Vectren Energy Delivery of Indiana, Inc. (Evansville, Indiana) -- the utility will pass along tax cut savings to customers:

Vectren North shall return the Tax Regulatory Liability to its retail customers through a separate component (the “Tax Refund Credit”) to be established in Cause No. 44430 TDSIC 9 to be initiated by October 2, 2018. The Tax Refund Credit shall be designed to return the Tax Regulatory Liability to customers over a six month period and be incorporated into Vectren North’s Compliance and System Improvement Adjustment (“CSIA”) mechanism. As the amounts recorded for the Tax Regulatory Liability are captured by Rate Schedule by taking the change in base rates multiplied by the actual throughput for this period, Vectren North will refund the Tax Regulatory Liability by Rate Schedule. Vectren North shall provide the other Settling Parties workpapers demonstrating the calculation of the Tax Refund Credit within the CSIA by August 2, 2018. Any over- or under-recovery associated with the Tax Refund Credit will be captured within subsequent  CSIA filings as a CSIA variance - June 1, 2018 Indiana Utility Regulatory Commission filing

Midwest Natural Gas Corporation (Washington, Indiana) -- the utility will pass along tax cut savings to customers:

Midwest is proposing a volumetric refund to customers that is class specific. We believe the refund should occur in the same four calendar months, of 2019, it was created in 2018. This gives us the best opportunity to refund the over collection back to the customers that created it, generally in proportion to their contribution. Spreading it over all 12 calendar months tends to favor industrial customers with a significant summer base load over the weather-sensitive customers that helped create the refund. The refund will be divided over the GCA estimated sales volumes, which are generally based upon the average of several years. At the end of April 2019, we would reconcile the refund dollars, with any differences being included in GCA variances at that time. - June 19, 2018 Indiana Utility Regulatory Commission filing

Fountaintown Gas Company, Inc. (Morristown, Indiana) -- the utility will pass along tax cut savings to customers:

Fountaintown has proposed to refund the over collection of tax funds from January 1, 2018 through April 30, 2018 by refunding $81,293. Fountaintown has proposed that such refund occur through a tracking mechanism that will begin in January 2019 and run through April 30, 2019 in order to refund the over collection as closely as possible to the customers by class who paid such over collection. The OUCC agrees to both the amount and the proposed tracker mechanism. Based on the evidence of record, we find that the over collection between January 1, 2018 and April 30, 2018 in the amount of $$81,293 should be refunded to the customer classes as proposed by Fountaintown. This refund of over collected tax dollars will begin in January 2019 and run through April 30, 2019 in order to more closely match the refund to the customer who provided such funds. - November 2, 2018 Indiana Utility Regulatory Commission filing

South Eastern Indiana Natural Gas Company, Inc. (Milan, Indiana) -- the utility will pass along tax cut savings to customers:

South Eastern requests to revise portions of its IURC No. G-11 tariff to reflect the amortization of $176,222 in Excess Accumulated Deferred Income Taxes over 19.65 years as a result of the Commission’s investigation into the impacts of the Tax Cuts and Jobs Act of 2017 and the subsequent Order in Cause No. 45032 S13. The rate adjustment will result in $8,968 being amortized annually and will lead to a $12,324 annual reduction to South Eastern’s revenue requirement after being adjusted for taxes and fees. - May 17, 2019 Indiana Utility Regulatory Commission memorandum

American Suburban Utilities, Inc. (Fort Wayne, Indiana) -- the utility will pass along tax cut savings to customers:

The rate reduction took effect for all bills that were rendered on July 1, 2018. Accordingly, there are five months for which service was billed after the tax cut at the prior rates, because ASU bills in arrears. He provided a total estimated deferred liability of $79,042.72. ASU proposed to divide this amount by 3 and for each of the first three months after the Phase 3 tariff in Cause No. 44676 is effective, to provide a bill credit equaling one-third of the deferred liability. In this way, the Phase 3 tariff will step in over four months rather than one. He testified that ASU expected to file the Phase 3 tariff before the end of 2018, but that if for some reason the tariff had not been submitted before March 31, 2019, ASU would file a tariff to reflect a one-time credit to exhaust all of the deferred liability in a single month. - December 10, 2018 Indiana Utility Regulatory Commission filing

Indiana American Water (Greenwood, Indiana) -- the utility will pass along tax cut savings to customers:

Indiana American Water announced today that its water customers across the state will soon start seeing lower monthly bills. The decrease, which amounts to approximately $1.04 per month (2.77 percent) for a residential customer using 4,000 gallons per month, is the result of the resolution of certain accounting issues related to the Tax Cuts and Jobs Act (TCJA) of 2017. - June 26, 2020 Indiana American Water press release

Ohio Valley Gas Corporation (Winchester, Indiana) -- the utility will pass along tax cut savings to customers:

The Parties have agreed that OVG should pay the excess accumulated deferred amount of $4,012, 142 to its customers over 34.25 years based on the average rate assumption method ("ARAM"). The first such refund payments will be reflected on customer bills starting January 1, 2019. Consistent with ARAM, the amount of the annual payment will vary each year and be implemented through a separate adjustment to OVG's volumetric rates for utility service ("EDIT Tracker") based on customer allocations and rate design approved in OVG's most recent base 2 rate case. The baseline EDIT Tracker for each of the next 35 calendar years is shown on the attached Exhibit A titled "EDIT Annual Amounts to be Returned." These baseline trackers will be further adjusted by February 15 of each year after 2019 to true-up the amounts returned the previous year in comparison to the target amount on which the EDIT Tracker for that previous year was based. - November 15, 2018 Indiana Utility Regulatory Commission filing

Indianapolis Power & Light (Indianapolis, Indiana) -- the utility will pass along tax cut savings to customers:

Today, the Indiana Utility Regulatory Commission (Commission) issued an Order in the Indianapolis Power & Light (IPL) rate case, Cause Number 45029. The Order included the Commission’s approval of a settlement agreement filed by most of the parties involved in the case. In the Order, the Commission authorized the utility to implement rates designed to produce additional annual revenue of approximately $43.877 million. The utility’s original request was for $124.491 million. In February 2018, IPL lowered its request from the original $124.491 million to $96.731 million following the passage of the federal Tax Cuts and Jobs Act of 2017 (TCJA). As stated in the approved settlement agreement, IPL will also provide an additional credit of $14.3 million to customers over two years to reflect the impact of the TCJA on IPL’s current rates for the period before new base rates go into effect. The Commission has previously approved a $9.51 million credit in the specific tax investigation case for this utility. - October 31, 2018 Indiana Utility Regulatory Commission press release

Boonville Natural Gas Corporation (Boonville, Indiana) -- the utility will pass along tax cut savings to customers:

Boonville requests to revise portions of its IURC No. G-3 tariff reflecting the new tax rate applicable to Boonville as a result of the Tax Cuts and Jobs Act of 2017 for all affected rates and charges in its IURC No. G-3 tariffs. - April 30, 2018 Indiana Utility Regulatory Commission order

Community Natural Gas Company (Spencer, Indiana) -- the utility will pass along tax cut savings to customers:

Community requests to revise portions of its IURC No. G-4 tariff reflecting the new tax rate applicable to Community as a result of the Tax Cuts and Jobs Act of 2017 for all affected rates and charges in its IURC No. G-4 tariffs. - April 30, 2018 Indiana Utility Regulatory Commission order

L.M.H. Utilities Corporation (Lawrenceburg, Indiana) -- the utility will pass along tax cut savings to customers:

The tax rate embedded in the utility's recurring rates is 28.91 %. The utility requests to reduce its recurring rates to reflect the new 21 % tax rate per the Tax Cuts and Jobs Act of 2017. - June 13, 2018 Indiana Utility Regulatory Commission order

Indiana Natural Gas Corporation (Paoli, Indiana) -- the utility will pass along tax cut savings to customers:

Indiana Natural requests to revise portions of its IURC No. G-3 tariff reflecting the new tax rate applicable to Indiana Natural as a result of the Tax Cuts and Jobs Act of 2017 for all affected rates and charges in its IURC No. G-3 tariffs. - April 30, 2018 Indiana Utility Regulatory Commission order

Indiana Utilities Corporation (Corydon, Indiana) -- the utility will pass along tax cut savings to customers:

Indiana Utilities requests to revise portions of its IURC No. G-12 Tariff for Gas Service reflecting the new tax rate applicable to Indiana Utilities as a result of the Tax Cuts and Jobs Act of2017 for all affected rates and charges in its IURC No. G-12 Tariff for Gas Service. - April 30, 2018 Indiana Utility Regulatory Commission order

 

Duke Energy Indiana (Plainfield, Indiana) -- the utility will pass along tax cut savings to customers:

Plainfield-based Duke Energy Indiana has reached a settlement with the Indiana Office of Utility Consumer Counselor and other parties regarding the disbursement of savings to customers from the passage of the Tax Cuts and Jobs Act. The utility says customers will receive approximately $142 million in annual savings.

The OUCC says when the legislation went into effect in January, the federal tax rate for most investor-owned utilities fell from 35 percent to 21 percent. As a result, the average residential customer will see their monthly bill reduced by about 5 percent, or $7.33, in 2018.

"The federal tax act is an opportunity for us to lower customer bills and help offset future rising costs," said Duke Energy Indiana President Melody Birmingham-Byrd. "We’ve reached an agreement to pass along tax savings embedded in our electric rates over the next two years. It’s a constructive agreement that reduces rates while still preserving our credit quality, which is important for keeping customer bills low."

Duke Energy says it began reflecting the lower federal tax rate in customers' bills earlier this year. The settlement, which included the Indiana Industrial Group and Nucor Steel, also proposes reducing base rates in September to reflect the lower tax rate. It also includes refunds of accumulated deferred taxes in 2018 and 2020. - June 28, 2018, Inside Indiana article excerpt

Indiana-Michigan Power (Fort Wayne, Indiana) – The utility will pass along tax cut savings to customers:

The Indiana Utility Regulatory Commission approved an order Wednesday allowing the Fort Wayne-based company to boost its Indiana customers’ rates about 7.3 percent, allowing it to raise $96.8 million in new revenue.

The Journal Gazette reports Indiana Michigan Power had initially sought a 20 percent rate increase to generate $263 million in new revenue.

That was reduced under a settlement between the company, Indiana’s state consumer advocate and several cities, companies and advocacy groups.

Some of the decrease was also attributed to the recent federal tax cuts. – May 31, 2018, AP article excerpt

FedEx (Multiple locations in Indiana) FedEx is investing $1.5 billion to expand the FedEx Express Indianapolis hub. Nationwide, FedEx committed more than $3.2 billion in wage increases, bonuses, pension funding due to the tax cuts. Pay raises, bonus increases, pension plan increases, and at least $1.5 billion in capital expenditures:

“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.

The company has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017 as a result of these actions.” – Jan. 26 2018, FedEx press release

OneMain Holdings, Inc. (Evansville, Indiana) – Bonuses and base wage increases:

OneMain Holdings Inc. will use part of its savings from the reduction in the federal corporate tax rate to raise its minimum wage for employees and provide a special bonus, President and CEO Jay Levine said. – Feb. 16, 2018 SNL Financial Services Daily article excerpt

Muncie Aviation Company (Muncie, Indiana) – Tax reform bonuses for all employees:

Muncie Aviation Company will pay a bonus to all employees during the first week of March, "due in part to the Trump (Tax Cuts and Jobs Act of 2017) and in part to the record economic results posted by the company for 2017," the company announced this week.

"The company believes that the favorable business climate will increase opportunities in the coming years," a release stated. A reception for the employees/owners will be held immediately after the awarding of the bonus at Merk's restaurant, which is located in Muncie Aviation's administrative building at the Delaware County Regional Airport.

--

The company employs 55 full-time and eight part-time people. – March 2, 2018 Star Press article excerpts

T.J. Maxx – 23 stores in Indiana – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:

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:

Associates

  • 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

Communities

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

AT&T -- $1,000 bonuses to 3,888 Indiana employees; Nationwide, $1 billion increase in capital expenditures.

Apple (Apple store locations in Indianapolis and Mishawaka) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

Bank of America (Multiple locations in Indiana) -- Indiana-based employees of Bank of America will receive $1,000 bonuses.

Cintas Corporation (Multiple locations in Indiana) -- $1,000 bonuses for employees of at least a year, $500 bonuses for employees of less than a year.

Comcast (Multiple locations in Indiana) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.

Home Depot -- 24 locations in Indiana, bonuses for all hourly employees, up to $1,000

Lowe's -- 8,000 employees at 44 stores and two distribution centers in Indiana. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (21 locations in Indiana) – Tax reform bonuses for employees totaling $23 million nationwide.

Starbucks Coffee Company (Multiple locations in Indiana) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

U-Haul (Multiple locations in Indiana) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Wal-Mart104 locations in Indiana -- 25,000 Indiana Walmart employees are receiving tax reform bonuses. Nationally, base wage increase for all hourly employees to $11; bonuses of up to $1,000; expanded maternity and parental leave; $5,000 for adoption expenses.

Wells Fargo 33 bank locations in Indiana; raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over next three year

Note: If you know of other Indiana examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

More from Americans for Tax Reform


How the Republican Tax Cuts Are Helping Arizona

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Tuesday, June 29th, 2021, 11:00 AM PERMALINK

Arizona is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:

483,360 Arizona households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Arizona congressional district received a tax cutNationwide, 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.

2,122,290 Arizona 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.

107,360 Arizona 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, Arizona 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 ten Arizona utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Arizona businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

SmithCraft Signs (Phoenix, Arizona) -- Employee bonuses, purchasing new equipment:

MS. BERGSTROM:  Oh, thank you. Thank you Mr. President.  Wow. I’m Nicole, and I run Smithcraft Signs.  We are a veteran-owned, small manufacturing company.  We’re a job shop.

And what tax reform means for me is what we can do for our team.  To improve our capabilities, we’re buying new equipment. We issued a special bonus to our midlevel employees.

Deeann, in our accounting department told me that she is using the extra money for what she describes as a “dream bucket-list vacation” to visit her daughter who was recently discharged from the Navy who is now in Hawaii.

Phil and NOAZ is using the money for a bathroom remodel he has been planning for over 10 years.

I’ve very excited about what the future holds for us.  And again, so many thanks. - April 12, 2018, White House transcript

Liberty Utilities  (Phoenix, Arizona) – The utility will pass along tax savings to customers:

The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

The Commission has been working on rate adjustments every month since February. At the July Open Meeting, the Commission addressed federal tax adjustments for both Southwest Gas and Liberty Utilities with adjustments made to their revenue requirements of $20 million and $1.9 million respectively. – August 24, Prescott News Online

Quail Creek (Phoenix, Arizona) – The utility will pass tax savings on to customers

The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

At the August Open Meeting, the Commission addressed tax adjustments for both the Quail Creek and Bermuda Water Companies. The largest tax adjustment occurred earlier this year when the Commission approved a $119 million dollar reduction to benefit APS customers. - August 24, Prescott News Online

Bermuda Water Company (Phoenix, Arizona) – The utility will pass tax savings on to customers:

The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

At the August Open Meeting, the Commission addressed tax adjustments for both the Quail Creek and Bermuda Water Companies. The largest tax adjustment occurred earlier this year when the Commission approved a $119 million dollar reduction to benefit APS customers.- August 24, Prescott News Online

Arizona Public Service (Phoenix, Arizona) -- The utility requested a $119 million bill reduction for customers due to tax reform:

"APS has requested the Arizona Corporation Commission approve a $119 million bill reduction for customers, based on federal corporate tax cuts, effective February 1, 2018.

If approved, the $119 million decrease will offset the $95 million revenue increase that resulted from APS’s last rate review. The savings of $0.004258/kWh will be passed directly to customers through the Tax Expense Adjustor Mechanism (TEAM), a new adjustor mechanism that was included in the company’s rate review, and customer savings will vary with actual energy usage. APS customers would receive the credit on their monthly bill. – Jan. 9, 2018 Arizona Public Service press release

Tucson Electric Power Company (Tucson, Arizona) – The utility will pass tax reform savings to customers:

EP and its sister utilities “believe it is in the public interest to share a substantial portion of the expected income tax savings with their respective customers on an expedited basis,” the companies said.

TEP says its proposals may include a fast-tracked regulatory approval process to implement a billing credit as soon as possible; a higher seasonal credit that would help offset customer bills during higher usage months; or bill credits that would decline over time while still smoothing the bill impacts of future rate requests. – Feb. 2, 2018 Tucson.com article excerpt

EPCOR USA (Phoenix, Arizona) - The utility will pass along tax cut savings to customers:

More than 57,000 EPCOR wastewater customers will receive more than $1.1 million in federal corporate tax cut savings, reducing the amount of their monthly wastewater bill starting with the July 2018 billing cycle.

Today, the Arizona Corporation Commission (ACC) approved EPCOR’s request to refund $1,106,392 in tax reform savings to all of the company’s residential and commercial wastewater customers.

Residential customers will receive a monthly credit of $1.26 until new rates are determined in a future rate case. Because wastewater service is billed at a flat rate, all residential customers will receive the same monthly credit. Residential customers will also receive a one-time credit of $7.56 on their July 2018 bill, refunding corporate taxes collected through June 2018 at the previous tax rate before today’s ACC approval of EPCOR’s application.

“We are extremely pleased to help our wastewater customers save more than $1 million each year, and it’s important to us that we put this into effect as soon as possible,” commented Joe Gysel, President of EPCOR USA, Arizona’s largest regulated water utility. “All our customers deserve to share in the savings generated by federal tax reform. It's positive for them, for their communities and for our state.” - June 12, 2018 EPCOR press release

Alliant Gas (Payson, Arizona) – The utility will pass tax reform savings to customers:

The Arizona Corporation Commission ordered Alliant Gas to file a rate case for its Page and Payson Divisions as part of the company’s action to refund customers the income tax reductions resulting from The Tax Cuts and Jobs Act of 2017. - Alliant Gas website

Southwest Gas Corporation (Phoenix, Arizona): – The utility will pass tax reform savings to customers:

The Tax Cuts and Jobs Act of 2017 reduced the federal income tax rate for corporations like Southwest Gas, and we’re passing the savings on to you. - Southwest Gas website

Arizona Water Company (Phoenix, Arizona) – The utility will pass tax reform savings to customers:

Arizona Water Company presented a plan to the Arizona Corporation Commission Tuesday to reduce customer rates in its western group, which includes Casa Grande, Coolidge and Stanfield.

Commissioners want to assure federal tax reform law directly benefits utility customers by passing federal tax savings on to the ratepayers, according to a press release. Commissioners have voted to award federal tax reform money directly to utility customers.

Going forward, commissioners voted to ensure a 3.6-percent rate reduction in monthly rates for the western group and a 4-percent reduction in monthly rates for the northern group. - March 15, 2018 Casa Grande Dispatch excerpt

UNS Electric, Inc. (Prescott, Arizona) – The utility will pass tax reform savings to customers:

The purpose of the Tax Adjustment is to address changes in the Company’s federal income tax rate until such changes are reflected in the Company’s next general rate case. The savings will be returned through a combination of (i) a per kilowatt-hour (“kWh”) bill credit for all customer classes and (ii) a regulatory liability that reflects the deferral of the return of a portion of the savings (which will be returned to customers in the Company’s next rate case). 

For 2019 (and subsequent years), the tax savings to be returned to customers will be calculated as for 2018 and will reflect the effective federal income tax rate applicable for that tax year. UNS Electric, Inc. document

HT Metals (Tucson, Arizona) - Purchasing new equipment:

His Tucson-based company, HT Metals, cuts pieces for aerospace and medical device industries. In early May, Ruiz told a crowd gathered in Tempe to see Vice President Mike Pence that he recently spent a couple hundred thousand dollars on a new machine.

“And, we get to expense it immediately,” he said. - May 16, 2018, KJZZ/Rio Salado College/MCCCD article excerpt

Pacific Oak Capital and Defer Gain (Phoenix, Arizona) -- The company is building an affordable housing complex in downtown Phoenix that will be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Three apartment complexes are headed to an Opportunity Zone in downtown Phoenix, addressing the need for affordable housing. These projects are valued at $61 million.

Investment company Pacific Oak Capital and Defer Gain, an Arizona-based real estate development company specializing in Opportunity Zone investments, have announced a joint venture to develop, finance, and operate multi-family, commercial, and industrial income-producing properties in Arizona Opportunity Zones.

In this first phase, three multi-family housing complexes are being built in downtown Phoenix, the 241-unit St. Ambrose Apartments and the 84-unit Presidential Apartments, and another housing development called Imperial Apartments. 

"It's exciting to see Opportunity Zone developments providing support to a critical component of our state's economy — the workforce," said Sandra Watson, President and CEO of the Arizona Commerce Authority. "We thank Pacific Oak and Defer Gain for advancing these three projects in downtown Phoenix neighborhoods."

These properties will include amenities such as mail rooms including secured lockers for packages, grocery delivery and cold/ freezer storage, clubhouses, multi-purpose rooms, private conference rooms, exercise facilities, resort style swimming pools, cabanas with private BBQ's, and access to public transportation. There will also be street level retail and mixed use opportunities for the community. 

"Adding quality housing is a top priority for our city. I am excited to see new housing, including much-needed workforce units, near our key job corridors in the downtown and airport area,” Phoenix Mayor Kate Gallego said. -- August 16, 2019 Housing Wire article

Lucid Moters Inc. (Pinal County, Arizona) -- The company is building a production plant in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Arizona's Pinal County has purchased 500 acres of land that it plans to lease and eventually sell to Silicon Valley electric carmaker Lucid Motors Inc ., which plans to create a $700 million production facility on the site.

The plant in Casa Grande, Arizona, will focus be on the Lucid Air, an under-development all-electric luxury sedan that Lucid claims will have a 400-mile range and top speed of 200 mph when it hits the market next year. Lucid eventually plans to employ 2,300 people at the plant, which is expected to begin construction in the second quarter of this year.

In September, Lucid Motors secured a $1 billion investment from Saudi Arabia's sovereign wealth fund. Around the same time, the Business Journal confirmed that it had moved its headquarters and about 300 employees  into the former Theranos space in Newark's Pacific Research Center campus, about four miles from incumbent rival Tesla Inc .'s Fremont factory.

Electric car promise

“The convergence of new technologies is reshaping the automobile, but the benefits have yet to be truly realized,” Lucid Chief Technology Officer Peter Rawlinson said when the Saudi investment was announced last year. “This is inhibiting the pace at which sustainable mobility and energy are adopted. At Lucid, we will demonstrate the full potential of the electric connected vehicle in order to push the industry forward.”

Rawlinson helped design Tesla's Model S sedan, but left the company in 2012.

Lucid has said it plans to build two versions of its electric vehicle, going head-to-head in the market that Palo Alto-based Tesla has pioneered. The Lucid vehicles will start at a base price of around $60,000 and will top $100,000 with options.

Arizona plant moves forward

In Arizona, Pinal County stepped in to help the deal for Lucid's new auto plant by consolidating the land under one ownership that eventually would be sold to the carmaker, Pinal County Manager Greg Stanley said. The county closed on the land at the end of 2018, spending $29.94 million through the issuance of bonds.

As part of the agreement, Lucid will pay $1.8 million per year in rent for the first four years of the agreement, and will buy the land in the fifth year, Stanley said. The county will break even on the deal.

Lucid is required to keep funds in an account that, if the plant does not come to fruition, will be used by the county to complete infrastructure improvements on the site to make it a shovel-ready industrial park.

Most of the land was owned by Scottsdale, Arizona, based Saint Holdings before being purchased by the county. Kirk McCarville of Land Advisors brokered a deal for 80 acres from a separate seller of adjacent land, which was purchased by the county as part of the 500-acre total purchase.

Saint Holdings is owner and developer of the Central Arizona Commerce Park, which contains the Lucid land.

“We have quite a bit of interest in the northern parcels,” said Jackob Andersen, president and CEO of Saint Holdings of the Central Arizona Commerce Park, which is also part of an opportunity zone. “We are open for business on the neighboring sites, we hope the others will get auxiliary uses.” -- Feb. 13, 2019 Silicon Valley Business Journal article

Pacific Oak Capital Advisors (Phoenix, Arizona) -- The company is building affordable apartment units in downtown Phoenix in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Thanks to downtown Phoenix's apartment building boom, there are thousands of new places for people to live in the popular area. Unfortunately, many who work or go to college downtown can't afford the pricey rents.

But three new apartment projects could help ease the rent crunch for hundreds of people who want to live near their job or school in central Phoenix.

An Arizona group is teaming with a national investor to develop three more affordable apartment projects in central Phoenix with almost 500 units. Rents for many of the apartments will be below the area's average, which is more than $1,737 a month, according to Colliers International.

The new tax incentive for developing in lower-income areas designated as Opportunity Zones is spurring the development of the new apartments. -- September 12, 2019 The Arizona Republic article

Pivot Manufacturing (Phoenix, Arizona) - Purchasing new equipment:

Two high-speed machines arrived less than a month after the president signed the tax bill. The law lets Macias avoid paying federal tax on 20 percent of his company’s income. - May 16, 2018, KJZZ/Rio Salado College/MCCCD article excerpt

Davcon Aviation, LLC and Mesa Hangar, LLC (Mesa, Arizona) -- The companies are planning to add 20 hangars to Mesa's Falcon Field Airport that will include office space, located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Mesa's Falcon Field Airport, known for its rich history and as a major economic engine for the city, is adding at least 20 hangars to accommodate its growing clientele.

The municipal airport, which serves private and military aircraft, announced last week that it's preparing for a 23-acre development -- complete with ancillary offices and manufacturing spaces.

Davcon Aviation, LLC, and Mesa Hangar, LLC, will construct the phased project on more than 1 million square feet of vacant city land on the northwest side of the airport.

"We are really excited about it," said airport Director Corinne Nystrom. "One of our big missions has been to finish developing the airport with a strong presence of hangars and aviation businesses and this is exactly what we've been looking for. It's a big win for mesa."

The land will be leased for 40 years, and the initial design concept estimates that the hangars will range from 5,000 square feet to 60,000 square feet.

The number and size of the hangars will vary, depending on the preferences of the new tenants, and will offer high ceilings and wide doors.

The hangars will seek to accommodate corporate jets and specialized fixed-wing and helicopter uses, explained Lynn Spencer, airport economic development project manager.

"One of the things that is so exciting about getting the new hangars is that a lot of the inventory will allow us to have a new stock of facilities that can attract a different variety of businesses and size aircrafts," she said.

"This is going to allow for more potential businesses and jobs to come here," Spencer added.

The project is anticipated to cost more than $30 million, but because the airport is self-sustaining, it won't be dipping into any of the city's general fund.

The U.S. Treasury Department designated Falcon Field as an "opportunity zone," meaning it's an economically-distressed community where new investments could be eligible for preferential tax treatment.

Opportunity Zones are designed to spur economic development and job creation, according to the federal Internal Revenue Service website. -- May 20, 2019 East Valley Tribune article

Banyan Residential (Scottsdale, Arizona) -- The company is revitalizing a vacant lot with apartments, retail, and office space which will be located on a Opportunity Zone, created by the 2017 GOP tax cut:


Banyan Residential announced the start of construction on the long-anticipated Scottsdale Entrada development this morning. Located at the northeast corner of 64th Street and McDowell Road, Scottsdale Entrada will revitalize a long vacant 33-acre lot with a vibrant mixed-use campus, including 736 apartment units, 250,000 square feet of office space, 5,000 square feet of retail and ample public open space. The project is located in an Opportunity Zone, part of a revitalization program formed under the Tax Cuts and Jobs Act of 2017 and will be developed with program-compliant funding.
 
"Because of its central location and proximity to Phoenix, this project is critical to the economic prosperity and urban renaissance of the area and surrounding neighborhoods," said Mayor Lane. "As the name conveys, this is a major entry point to Scottsdale. We are very excited for construction to start." -- March 27, 2020 Vertical News article

Crooked Tooth Brewery (Tucson, Arizona) – Because of the Tax Cuts and Jobs Act, the brewery is planning to invest in new jobs and  has been able to give back to the community:

The Vernons have been in the brewery business for about three years. Most of that time has fallen under the Craft Beverage Modernization Tax Reform Act passed in 2017. Because of this, they pay $3.50 a barrel in taxes, but at the start of 2020 that could double.

“We had about two months of business where we had $7 a barrel,” Vernon said. “That two months of business we didn’t do a lot of brewing, you know.”

This tax break was like a glass half full for small business.

Like the glass, there was plenty of room to grow. But if it expires, there's fear that optimism goes down the drain.

“Something that we may be investing in employment or we also give a lot to the community,” Vernon said.

These are things Vernon said he's been able to do because of this tax break, like working with local nonprofits on events. – Dec. 7, 2019, KLOD article.

Caliber  (Phoenix, Arizona) -- The company is building a behavioral health clinic that will be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Caliber-The Wealth Development Company has closed a deal as the property owner and developer of a 62,592-square-foot behavioral health clinic in downtown Phoenix. The 96-bed facility will be occupied by Dr. Cameron Gilbert and his company, Medical Behavioral Hospital of Phoenix LLC., and will care for patients struggling with medical and psychiatric conditions. Caliber purchased the facility, located near 14th Street and McDowell Road, for $10 million and will complete $9.5 million of renovations in the next year. 

“This is a great example of how opportunity zones can truly make a positive impact on communities by enabling projects that are profitable, yet otherwise may not have attracted traditional funding,” said Chris Loeffler, CEO and co-founder of Caliber-The Wealth Development Company. “The clinic is expected to bring 80 high-income jobs into downtown Phoenix and, more importantly, serve a population in desperate need for advanced care.” 

The clinic is the fourth investment to be included in the Caliber Tax Advantaged Opportunity Zone Fund, LP. and is one of the first healthcare opportunity zone properties across the country. Over the past year, Caliber has emerged as an industry-leading expert in opportunity zones and its Qualified Opportunity Zone Fund (QOF) has raised more than $40 million since its launch in Q4 2018. The fund is open to investment of short- and long-term capital gains, providing significant tax savings to investors, and is expected to reach its $500 million goal within two years. -- August 7, 2019 AZ Big Media article

Sutter Masonry, Inc. (El Mirage, Arizona) -- The company employs approximately 100 people. Hourly wages were increased by $1.00 and over $50,000 in bonuses were distributed.

San Tan Brewing (Chandler, Arizona) – The Tax Cuts and Jobs Act allowed the brewery to put their spirits on the market:

Anthony Canecchia owns San Tan Brewing, a company that produces large quantities of beer and a small amount of distilled spirits.

Canecchia and his team had been experimenting with spirits for a while before they put them on the market. In 2017, considering the tax cut, it seemed like a natural time to start production, he says. San Tan Distilling started selling its spirits, such as Saint Anne's vodka and Sacred Stave whiskey and bourbon, in 2018. – Dec. 20, 2019, The Arizona Republic article.

Rastegar Property Company, LLC (Phoenix, Arizona) -- The company is building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Rastegar Property, a vertically-integrated real estate investment firm focused on value-add and development in all asset classes across the United States, today announced its acquisition of a prominently-located high-rise lot in downtown Phoenix, AZ in anticipation of the city’s rapidly growing demand for residential and commercial real estate space.

Located at 334 N. 4th Ave., the 26,500+ square foot high-rise lot is near many employers, higher education campuses, retail spaces including shops, restaurants and bars, and entertainment venues. The lot’s zoning allows for 550 feet of vertical development, and Rastegar Property plans to use the lot to develop a multifamily high-rise residential complex with office and retail components.

“The Phoenix metropolitan area is experiencing some of the most tremendous job growth in the country, and with that comes significant demand for residential and commercial properties,” said Ari Rastegar, CEO of Rastegar Property. “In addition to its attractive size and location, the property also falls within a designated opportunity zone, a program through which the state of Arizona is encouraging investment and development in the Phoenix metropolitan area. This program, combined with the city’s rapidly growing population, and nation-leading rent and job growth, makes Phoenix an ideal market for Rastegar to make strategic acquisitions that bolster our national portfolio.” -- July 17, 2019 Rastegar Property press release

Helio Basin Brewery (Phoenix, Arizona) – The Tax Cuts and Jobs Act allowed the brewery to expand:

Local breweries have been paying a $3.50 tax per barrel, but once the bill expires, it will double, increasing to $7 per barrel. "Even though it doesn't sound like a lot of money, a $3.50 increase, it really does matter a lot to us, especially at our scale," said Dustin Hazer, the owner of Helio Basin Brewery. "Pretty much anything we try to do to increase our efficiency, it's a matter of change. It's not even once the sale happens; it's once we process it. So, we're getting immediately taxed on that volume. It's not when we sell it; it's when we process it."

Hazer opened his brewery a little more than three years ago, before the tax break was put in place.  "The first year we had the full tax and then the last couple we've had the nice tax," he said. "Basically, when that tax break happened, we started to launch into some of the bigger stores, can products. We wouldn't have been able to do that even though it doesn't seem like a lot of money." – Dec. 5, 2019, AZFamily article.

JMA Ventures LLC (Phoenix, Arizona) -- The firm is building an apartment community located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

San Francisco-based JMA Ventures LLC is on track to break ground next week for a $75 million apartment community in the warehouse district in downtown Phoenix.

The last time the developer bought land in downtown Phoenix — about four blocks away from its current location at Fourth and Buchanan streets — it was 20 years ago.

...

Newmark Knight Frank (Nasdaq: NMRK) arranged $51.9 million in construction financing for the 278-unit apartment community, with the rest coming from JMA Ventures and "opportunity zone" funding. -- August 19, 2019 Phoenix Business Journal article

The Beer Shop Co. (Tempe, Arizona) – Because of the Tax Cuts and Jobs Act, the owner was able to open his business and create jobs:

Dylan DeMiguel is a partner at the The Shop Beer Co. in Tempe. 

Originally he thought he’d head to law school, but it turns out his entrepreneurial spirit drew him into the booze business. 

It's booming, he says, thanks in part to a tax break that went into effect in 2018.

“We’re taking this money to fuel the growth of this company. We’re literally hiring people,” DeMiguel said. “We’re buying equipment. And we’re investing in our community.” – Dec. 8, 2019, KPNX 12 News article.

CAVU Aerospace (Mesa, Arizona) -- The aerospace company is opening an aircraft component repair facility in an Opportunity Zone created by the Tax Cuts and Jobs Act:

CAVU Aerospace Inc. is opening a $5 million aircraft component repair facility in Mesa, with plans to hire up to 75 employees.

The Stuttgart, Arkansas-based aerospace company, which focuses on end-of-service aircraft dismantling, engine repair and aerospace maintenance, was founded in 2010.

Component repair is a new business for the company, and Mesa will be the first of this facility for the company, said Ken Kocialski, CAVU Aerospace’s managing partner.

"We’re very excited to get this operation started," said Kocialski, who has lived in Chandler since the 1980s and will work out of the new facility. "This will bring our operation full circle."

...

A Los Angeles-based investment firm purchased the 20 acres of land in an opportunity zone for $2.25 million in February. -- August 1, 2019 Phoenix Business Journal article

U-Haul (Headquarters in Phoenix, with many locations statewide) – $1,200 bonus for full-time employees, $500 for part-time employees; over 28,000 workers will receive a bonus:

Officials with U-Haul say Friday its employees will receive a one-time bonus, as a result of the tax cut bill that was signed by President Donald Trump.

According to a statement, full-time team members will get a $1,200 bonus, while part-time employees will get $500. The bonuses, which will be issued by the end of February, will cost the company $23 million.

Officials say over 28,000 workers will benefit from the bonus, with more than 3,800 of those in Arizona. – Feb. 9 2018, Fox 10 Phoenix news article

YAM Worldwide (Scottsdale, Arizona) -- $2,000 bonuses for the 595 employees who have been with the company more than six months; $1,000 bonuses for the 131 employees who have been with the company less than six months. More than $1.3 million in bonuses were paid:

American entrepreneur and philanthropist Bob Parsons today announced that in celebration of the passage of the GOP tax plan, all 725 YAM Worldwide employees will receive additional bonuses. The 594 staffers who have been with the company for more than six months will receive $2,000, and the remaining 131 employees who have been on the YAM Worldwide team six months or less will receive $1,000 each. The more than $1.3 million in bonuses will be distributed today.

“The passage of the tax credit is a catalyst for explosive economic growth. On a massive scale, the lowered federal tax burden on businesses will increase investment, entrepreneurship and corporate philanthropy,” said Parsons. “I’ve always believed in sharing good news and have decided to celebrate the tax plan by mgiving back to my staff.” – Dec. 17 2017, YAM Worldwide press release

Data Sales Co., Inc. (Scottsdale, Arizona) – $1,000 bonuses for all 80 employees:

Data Sales Co., Inc. announced today that the Company will celebrate the recent passage of tax reform legislation by distributing to all 80 plus employees a special bonus of $1,000 each. Data Sales Co. will benefit from the new tax law lowering the corporate tax rate from 35 percent to 21 percent:

“Our hard-working employees make this company succeed, and we wanted them to share in the savings the company will see and also help grow our economy. Today I’m announcing that every employee will receive a cash bonus of $1,000 each,” said Paul Breckner, President of Data Sales Co. “I also want to thank our local Congressman, Jason Lewis, for his consistent advocacy of tax reform and seeing it through to becoming law. With the majority of our 80+ strong workforce here in Burnsville, I’m pleased that the benefits of tax reform will be felt at home.”

Background on tax reform bonuses and Data Sales Co.:
All employees, whether full-time or part-time, hourly, salaried, commission or non-commission will receive the bonus to show our appreciation and heartfelt thanks for their service. We believe this tax reform will be good for Data Sales, spur economic growth, continue to grow jobs and keep unemployment at an all-time low. – Jan. 22, 2018 Data Sales Co., Inc. press release

Virtua Partners (Phoenix, Arizona) - Launched an Opportunity Zone Fund, raising $200 million for the fund:

Virtua Partners (Virtua), a global private-equity real-estate investment firm, today announced the launch of the first-ever Opportunity Zone Fund. This groundbreaking fund is the first vehicle designed to invest in the newly created Opportunity Zones -- one of the lesser known provisions of the Tax Cuts and Jobs Act of 2017 (the Tax Reform Act). Virtua Opportunity Zone Fund I, LLC aims to raise $200 million and is designed to utilize the tax-savings opportunities created by the tax-reform law. - June 20, 2018 Virtua Partners press release

Pacific Oak Capital and Defer Gain (Phoenix, Arizona) -- The company announced an investment into affordable multi-family, commercial, and industrial income-producing properties within the Opportunity Zones, which will create jobs:

“Three apartment complexes are headed to an Opportunity Zone in downtown Phoenix, addressing the need for affordable housing. These projects are valued at $61 million.

In this first phase, three multi-family housing complexes are being built in downtown Phoenix, the 241-unit St. Ambrose Apartments and the 84-unit Presidential Apartments, and another housing development called Imperial Apartments.” -- August 16th, 2019, Housing Wire

Western Alliance Bancorporation (Phoenix, Arizona) – Base pay raise of 7.5 percent for the lowest-paid 50% of employees; increased bonuses; increased 401(k) match; etc.

Western Alliance, which has $20 billion in assets, plans to increase the base pay of the lowest-paid 50% of employees by 7.5% once the bill becomes law, the bank’s chief executive Robert Sarver said in an interview Wednesday. Bonuses will also go up, bringing the total pay increase for this group of employees to around 10%. These employees generally make $75,000 or less.

Western Alliance, which operates units including Bank of Nevada and Torrey Pines Bank, also plans to increase its 401(k) match from 50% of an employee’s contribution up to 6% of pay to 75% of an employee’s contribution up to that same level. The bank, which has about 1,700 total employees, also plans to improve maternity leave benefits, though Mr. Sarver declined to detail those changes. – Dec. 20, 2017 Wall Street Journal article excerpt

AT&T - $1,000 bonuses to 1,510 Arizona 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

Apple (Apple store locations in Chandler, Gilbert, Glendale, Phoenix, Scottsdale, Tucson ) -- Arizona-based Apple employees received $2,500 bonuses in the form of restricted stock unitsNationally, $30 billion in additional capital expenditures; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

Wal-Mart – Arizona employees at 113 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

Lowe's -- 4,000 employees at 32 stores in Arizona. Employees will receive bonuses of up to $1,000  based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Home Depot -- 57 locations in Arizona, bonuses for all hourly employees, up to $1,000:

"This incremental investment in our associates was made possible by the new tax reform bill." -- Jan. 25, 2018 Home Depot press release

Ryder (Six locations in Arizona) -- Tax reform bonuses for employees.

Waste Management Inc.  (Multiple locations in Arizona) -- $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

T.J. Maxx – 17 stores in Arizona – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:

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:

Associates

  • 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

Communities

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

FedEx (Multiple locations in Arizona) – More than $3.2 billion in wage increases, bonuses, pension funding due to the recent tax cuts. Pay raises, bonus increases, pension plan increases, and at least $1.5 billion in capital expenditures:

“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.

The company has made no change to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017 as a result of these actions.” – Jan. 26 2018, FedEx press release

Cintas (Multiple locations in Arizona) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

Comcast (Multiple locations in Arizona) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.

Chipotle Mexican Grill (Multiple locations in Arizona) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Starbucks Coffee Company (Multiple locations in Arizona) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

McDonald’s (280+ locations in Arizona) – 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

Wells Fargo – 181 bank locations in Arizona; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other Arizona examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list


How the Republican Tax Cuts Are Helping Illinois

Share on Facebook
Tweet this Story
Pin this Image

Posted by John Kartch on Monday, June 28th, 2021, 4:00 PM PERMALINK

Illinois is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:

856,800 Illinois households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every Illinois 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.

4,137,270 Illinois 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.

162,920 Illinois 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, Illinois 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 seven Illinois utilities reduced their customers' bills (see below).

Thanks to the tax cuts, Illinois businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Rockford Ball Screw (Rockford, Illinois) - Hiring 25 new employees, expanding plant by 30,000 square feet:

Linda McGary broke ground Thursday on a 30,000-square-foot expansion at Rockford Ball Screw, the manufacturing firm her father launched in 1973 in the basement of their family home.

McGary, 56, is quick to point out that she’s neither an engineer nor a skilled machinist, but she has a clear vision for Rockford Ball Screw: growth.

The company of 70 employees is looking to hire 25 more as part of the expansion — to be completed by mid-November — at its 60,000-square-foot plant in Southrock Industrial Park. Manufacturers often green light expansions after landing a big purchase order that will outpace present capacity, but that’s not the case with Rockford Ball Screw.

Fueling her company’s expansion, McGary said, are lower corporate tax rates and rules under the Tax Cuts and Jobs Act signed into law last year by President Donald Trump. And Rockford Ball Screw has a promising shot, she said, at reviving a business relationship with a firm that years ago was one of its biggest customers. - June 28, 2018, Rockford Register Star article excerpt

Atlas Tool Works, Inc. (Lyons, Illinois) – increased 401(k) contributions for employees:

In the wake of the bill’s passage, some national companies issued well-publicized bonuses to their employees. Participating companies included AT&T, Bank of America, Comcast and Walmart, as ConservativeActionNews.com reported.

Mottl told Roskam his firm had followed suit, increasing the 401(k) contribution to workers. – June 28, 2018 DuPage Policy Journal article excerpt

Habitat Company (Chicago, Illinois) -- The real estate management company, along with other groups, are building a new apartment that is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

For the first time in many years, Chicago’s North Lawndale community is getting a major mixed-use development that will bring much-needed jobs, retail space, and eventually hundreds of new residential units to the historically underserved West Side neighborhood.

....

The public-private partnership between Habitat, Sinai, Cinespace, the CHA, and the city of Chicago isn’t the only unusual aspect of the development. The Ogden Commons will be Chicago’s largest mixed-use project to take advantage of federal Opportunity Zones. -- March 9, 2020 Curbed article

Pig Minds (Machesney Park, Illinois) – Because of the Tax Cuts and Jobs Act, the brewery was able to create new jobs:

Illinois breweries have 26 days until a tax break expires. That's why hundreds of small businesses are coming together to ask congress for an extension.

For Shane Johnson, expanding Pig Minds in Machesney Park is going to make a huge difference in the way it does business.

"We are getting ready to expand our brewing capabilities, add a canning line so we can get a bigger footprint out and keep up with demand. We have a problem with keeping up with demand with two of our beers, especially in the summer time. This is going to alleviate that problem," said Pig Minds General Manager Shane Johnson. 

One way the brewery was able to expand is with a little help saved from the Federal Excise Tax (FET) rate. The Illinois Craft Brewers Guild says since 2017, the tax break has saved breweries money by lowering the cost of barrels from $7 each to $3.50 each. – Dec. 5, 2019, WREX article.'

Sko-Die (Morton Grove, Illinois) - 3% wage increase, investing $1 million in new equipment:

Sko-Die has been in the Steininger family since its founding in 1947—and after 71 years in business, tax reform is allowing them to expand their facility, update their technology and reward their employees.

“The first thing I did when I found out what my tax savings would be? I took that money and gave a raise to all the employees,” said Sko-Die’s president, Patrick Steininger. “It came to about 3 percent per employee, on average.”

The total price for Steininger’s technology investment? “About $1 million.”

“Without tax reform, we wouldn’t have made these investments,” Steininger said. “Absolutely not.” - August 24, 2018, National Association of Manufacturers’ Shopfloor Blog excerpt

Aqua Illinois (Kankakee, Illinois) – the utility will pass on tax reform savings to customers:

Ervin said the lower rate was made possible by the Tax Cuts and Jobs Acts of 2017, aimed at cutting taxes on individuals and businesses, stimulating the economy and creating jobs. It substantially reduces the corporate tax rate from a maximum of 35 percent to a flat rate of 21 percent, and is estimated to save the water company about $4.5 million. - March 10, 2018 the News-Gazette excerpt

Peoples Gas (Chicago, Illinois) – the utility will pass on tax reform savings to customers:

We are proud to be able to say that our rates have declined during the past 12 years. In 2019, we reduced our rates by passing benefits created by the federal Tax Cuts and Jobs Act to customers. Very few businesses can say that their rates or prices have remained unchanged or even declined over a period of more than a decade. Here's a look at the 2021 rate for RS-2 customers and the cost increases of a variety of common household items since 2009. - Peoples Gas homepage

 

Nicor Gas (Naperville, Illinois) – The utility will pass along tax cut savings to customers:

Nicor Gas plans to file testimony with the Illinois Commerce Commission seeking approval to pass along tax-reduction savings to its 2.2 million natural gas customers in Illinois.

If the new program is approved, Nicor Gas will begin providing a credit to lower customers’ bills.

The tax savings are the result of a new federal law, the Tax Cuts and Jobs Act, which was signed into law Dec. 22, 2017, and decreased the corporate tax rate from 35 percent to 21 percent. The tax reduction, coupled with other provisions impacting the way that natural gas utilities calculate their federal income tax liability, is anticipated to produce tangible savings, which will benefit Nicor Gas customers this year. - January 15, 2018 Ford County Record excerpt

 

Illinois American Water (Urbana, Illinois) – The utility will pass along tax cut savings to customers:

The Federal Tax Cuts and Jobs Act decreased the corporate tax rate from 35 percent to 21 percent. On April 19, 2018, the Illinois Commerce Commission approved an order for Illinois utilities to pass savings from the national tax reform on to customers.

Illinois American Water is returning about $10.8 million to customers over the next 11 months.

Illinois American Water customers will see a credit on their May 2018 bill continuing through March 2019. After this initial 11-month timeframe, the credit amount will be reconciled and adjusted appropriately. The new credit amount will be communicated at that time.

According to Illinois American Water President Bruce Hauk, the credit to bills is a benefit provided through the financial model of a regulated investor-owned utility. He said, "We are pleased to be able to share this savings with our customers. In addition to this savings, our team works hard every day to control operational and maintenance costs so we can invest in our critical infrastructure and minimize impact to customer bills."

Depending on service area, Illinois American Water water service customers will see a credit on their bill for between about $1.39 a month to $2.35 a month. Wastewater service customers will see a credit on their bill between about $1.20 a month to $3.90 a month. – May 7, 2018 Business Wire article excerpt

Commonwealth Edison (commonly known as ComEd) (Chicago, Illinois) – the utility will pass tax savings to customers:

The recent annual formula rate filing also included an advancement of $205 million from anticipated savings in 2019 as a result of the federal tax cut and jobs act.

“In this filing, we have proposed to the ICC that we advance into 2019 with savings that customers would realize through the lower tax rates. The formula ratemaking process allows for such timely distribution of savings. It also would help to extend the stable rate environment that we have had for some time since before the smart grid program came and launched,” said Gomez. – April 25, 2018 The Chicago Citizen press release excerpt

Ameren Illinois (Chicago, Illinois) – the utility will pass tax savings to customers:

Ameren Illinois electric customers could save an average of $2.50 to $3.00 per month in 2018 and natural gas customers could save an average of $1 per month if the Illinois Commerce Commission (ICC) approves the company's plan to pass savings from the recently approved federal tax cut legislation back to its customers.  Customers using both electricity and natural gas could see a combined savings.

In the proposal filed with the ICC today, the company is seeking approval to pass along federal tax savings to electric customers beginning this year.  A similar proposal was filed last week on behalf of Ameren Illinois natural gas customers. 

"Under the new tax plan, Ameren Illinois’ effective tax rate will decrease by nearly 13%,” said Richard Mark, chairman and president, Ameren Illinois. "The plan we have filed with the ICC gives us the ability to expedite the return of these savings to our customers."

The Energy Infrastructure Modernization Act of 2011 provides a mechanism to return these savings to electric customers, but without filing the petition customers would have to wait until 2020 to receive the benefits. If approved by the ICC, Ameren Illinois customers will begin seeing these savings in March. – Jan. 22 2018, Ameren Illinois press release

MidAmerican Energy Company (Des Moines, Iowa) – the utility will pass tax savings to customers:

Thanks to tax reform, utility bills will start going down soon. MidAmerican Energy says bills will be lowered for its Illinois customers starting in April, and probably for Iowa customers in May.

Spokeswoman Tina Hoffman says the company's tax rate dropped from 35 to 21 per cent, and as a result Illinois electric and natural gas customers will save about 50 dollars per year. The average Iowa customer would save 30 dollars.

But tax reform will affect more than just MidAmerican's corporate tax rate.

"And what we're proposing to do is create an account that captures these benefits that will help us in the long-term make sure that we reduce the size of even the need for future rate cases. So eventually that keeps rates low for customers well into the future."

Hoffman says the Illinois Commerce Commission has already approved the company's proposal and the savings should show up in residential bills this month. However the Iowa Utilities Board has not yet approved MidAmerican's proposal but she thinks it could lower Iowa bills beginning in May. - April 2, 2018 WVIK News article

Gotham Greens (Chicago, Illinois) -- The indoor greenhouse agriculture company opened a greenhouse in the city in an Opportunity Zone created by the Tax Cuts and Jobs Act:

The growing desire among consumers for fresh greens delivered fast is helping transform parts of Chicago's industrial landscape. Gotham Greens, a pioneer in indoor greenhouse agriculture, yesterday opened its largest greenhouse in Chicago on a portion of the former Ryerson Steel Mill in the historic Pullman neighborhood. The 100K SF greenhouse at 10636 South Woodlawn Ave. is its sixth nationwide, and more than doubles the company’s Midwest production.
 

Chicago Neighborhood Initiatives repurposed and sold the land to Gotham Greens, part of an effort that has also brought in the 140K SF Whole Foods Midwest Distribution Center, the LEED-Platinum certified Method Products factory and Pullman Crossings, a 62-acre industrial park where Ryan Cos. is putting the finishing touches on a 400K SF industrial spec building. “What’s happening here in some ways mirrors the transition of the national economy, where we’re seeing many industrial areas transformed by green, sustainable and environmentally friendly companies,” CNI President David Doig said.
....

Doig expects the Pullman site will continue to grow overall as well, and aside from its available workforce, land and hub of transportation links, he credits its location within a federal opportunity zone. Although these designations, which will allow investors to eventually receive tax breaks, have received criticism, with some charging they attract investment to already-affluent areas, Doig said the zones have been instrumental in bringing much-needed funds to Pullman. The spec by Ryan Cos., for example, is a $35M project, and all the funding came from opportunity zone investors.   “Pullman is still suffering after years of disinvestment, so we have a lot of catching up to do.” -- November 14, 2020 BisNow article

The Rabine Group (Schaumburg, Illinois) — Increased raises and bonuses, increased charitable donations, increased hiring, increased research and development spending, and company expansion: 

Take my company, the Rabine Group, a group of nine small Illinois-based companies providing paving, roofing, property assessment technology, dump trucking and exterior facility maintenance and construction. Because of tax cuts, our companies are able to do additional things that will spark economic growth. These include raises and bonuses for our teammates, larger donations to nonprofits, more hiring and jobs, larger research and development (R&D) spending, and expansion. 

We will be giving raises that are roughly 50% larger than the past eight years and also larger bonus incentives. Our donations to the nonprofit foundations we support will in many cases double in 2018, and we will be adding jobs across the board from entry-level to leadership. 

The combination of small business and corporate tax cuts has created small business optimism like we haven’t seen in more than a decade. Small businesses like ours work for great companies like Exelon, Walmart, Home Depot, and Lowe’s. And when they are growing, we can count on more opportunity. — Feb. 21, 2018 USA Today op-ed excerpt

Anamet Electrical Inc. (Mattoon, Illinois) - Increasing employee wages and investing in new equipment:

In oral testimony June 20, 2018, to the House Energy and Commerce Subcommittee on Energy ANAMET Electrical President Sam McCammon echoed the NEMA survey results citing that ANAMET had made investments in its employees and equipment as a result of tax reform.

"After foregoing pay raises for consecutive years, we were finally able to give our employees a much-deserved wage increase," McCammon said. "Because of the increase in the Section 179 deduction limit from 100 percent of $500,000 to 100 percent of $1,000,000, and 50 percent above $1,000,000, ANAMET is planning to increase our capital expenditures in 2019 by more than 100 percent from normal investment levels, which will better position us among our competition." - June 20, 2018 National Electrical Manufacturers Association press release excerpt

Ulta Beauty, Inc. (Bolingbrook, Illinois) — Bonuses for hourly associates, totaling $12.3 million.

Dot Foods (Mount Sterling, Illinois) -- $500 bonuses for 4,800 employees:

A Mount Sterling company is joining the growing ranks of businesses sharing the benefits of a tax overhaul with its employees.

All of Dot Foods’ nearly 4,800 full-time workers will get a $500 bonus.

The food industry redistributor said the bonuses will go to employees at all 12 Dot locations in the United States and both Dot Foods Canada locations. The one-time bonus will be paid in mid-March to those who were employed with Dot and Dot Transportation at end of 2017.

“We’re really happy to be able to give this bonus to our employees,” Dot Foods CEO Joe Tracy said. “We surprised them by announcing the bonus during our National Business Meeting in St. Louis in late January. Our people are Dot’s greatest asset, and the tax reform bill offered a great opportunity to reinvest in our employees.”

The 2017 Tax Cuts and Jobs Act lowered the federal corporate tax rate from 35 percent to 21 percent when President Trump signed it onto law in December. The bill also changed the way companies operating internationally are taxed.

“The tax legislation is good news for Dot and many other companies,” Tracy said. “It’s going to put us in a better position to compete internationally and continue to invest in our business. We owe our continued growth and success to our employees. Their hard work every day makes it possible, so it was an easy decision to recognize their efforts with this bonus when the opportunity arose.” – Feb. 17, 2018 Jacksonville Journal Courier article excerpt

Five Senses Spa, Salon and Barbershop (Peoria, Illinois) -- $500 bonuses for 20 employees; the company is also looking into additional employee benefits in 2018.

Paola Hinton’s hands were shaking in December as she pulled out bundles of cash and gave each of her 20 employees a $500 bonus. No one in the crowded back room at Five Senses Spa, Salon and Barbershop in Peoria had ever seen $10,000 in cash, and Hinton had it all in a little briefcase.

The employees’ faces lit up, recalled Hinton, who launched the business almost 12 years ago. She has never been able to give bonuses like this before, but the new federal tax law passed late last year made it possible, she said.

--

Hair stylist Breitanya Williams spent part of her bonus fixing the taillights on her Buick Rendezvous — the only vehicle she and her husband own that will fit all four of their young children.

Another portion of Williams’ extra money went toward subscribing to a workout program. “That’s like my life-changing part,” said Williams, 25. “I just had my fourth child in five years … (and I’m) trying to make my family and myself healthier.”

Williams’ colleague Laura Naven also put her bonus toward her family. She paid down hospital bills left over from when she gave birth to her 4-month-old and put some money into savings.

“I have two kids, so building up the savings is key right now,” said Naven, 33, general manager at Five Senses. -- Jan. 26, 2018 Chicago Tribune article excerpts

Griffith Trucking, Broadway Express, Heartland Peterbilt, Heartland Classics (Effingham and Newton, Illinois) – $1,000 bonuses:

In President Trump’s State of the Union address Tuesday evening, he made the case that his recent tax law is the reason why companies across the country have announced bonuses, wage increases and other benefits for their employees.

Tony Griffith, who owns three companies in Effingham, agrees wholeheartedly. So much so that this week he announced to his 65 full-time employees that he will be giving each of them a $1,000 bonus.

--

Husband and wife Kristi and Rich Stoddard, who both work at Heartland Peterbilt, are also excited about the bonuses. With three children, they say it's a more than welcome gesture.

“Anytime your paycheck increases, it’s definitely a good thing for your family," said Kristi Stoddard. "It’s nice to see they’re putting money back into the middle class."

--

For the Stoddards and others, every bit counts.

"We’ll be able to pay more bills," said Rich Stoddard. "We might be able to go out for dinner. Do the little things we might not be able to do until this kicks in. Honestly, your paycheck, you know where it’s going even before you get it. Now we have a little extra."Jan. 31 Effingham Daily News article excerpt

T.J. Maxx – 50 stores in Illinois – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:

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:

Associates

  • 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

Communities

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

Dohrn Transfer (Rock Island, Illinois) -- $1,000 bonuses for approximately 1,200 employees; increased capital expenditures:

 At least one Quad-Cities company is already giving out bonuses due to the recent federal tax-cut savings.

Dohrn Transfer, with its corporate headquarters for trucking and a company warehouse in Rock Island, has mailed out $1,000 bonuses to all of its approximately 1,200 employees in six Midwest states. About 350 of those work here.

“It was from the tax plan,” Heather Dohrn, vice president of a sales and marketing, said Wednesday, referring to the tax cut signed into law Dec. 22 by President Donald Trump.

“It generated tax savings for our company, and we wanted to share it with our employees," she said. "Even our part-time employees (received the entire bonus).”

Employees began receiving the checks in the mail Monday.

“They were pretty excited,” Ms. Dohrn said. “One thousand dollars goes a long way with hard-working people. It’s exciting to hear what they are doing with it, and that they feel appreciated.

“It’s important for us to make sure we are compensating them and passing on those savings to them, because they are the ones that make us successful,” she added. “Our secret sauce is our employees, so we want to make sure that we are compensating them.”

Ms. Dohrn also said the tax reform was done to stimulate the economy, “so let's get it into the hands of the people that can use it and get it back in the economy and drive things in the right direction.”

The money in bonuses is in addition to the increases that the company will be doing for employees in 2018, she said.

“It’s not like this is a one-time thing,” Ms. Dohrn said. “We are going to continue to reinvest in our employees.”

Ms. Dohrn said additional money from the tax cut savings will be reinvested in equipment and infrastructure by the company to help it continue to grow in 2018.  Ms. Dohrn said the company expects about a 10 percent growth this year.” – Jan. 31 2018, The Dispatch/The Rock Island Argus article excerpt

Flavorchem Corp. (Downers Grove, Illinois) -- Because of the Tax Cuts and Jobs Act, the company was able to make a $4 million investment in new equipment.

“During the visit, Flavorchem announced a previously-undisclosed $4 million investment in new equipment helped made possible due to the historic tax reform law enacted last year. Roskam was able to view the upgraded spray dryer and air pollution control device while touring the facility.

 Rep. Roskam’s leadership on tax reform supported our long-term, community-focused strategic plan of making a $4 million expansion of our production and enabled us to keep our strong commitment to meeting the highest standards of quality, safety and supply chain contingency, said Ken Malinowski, President of Flavorchem Corporation.” -- July 2, 2018 NAM Shopfloor Blog

Emkay, Inc. (Itasca, Illinois) -- Emkay is a fleet management company that gave $1,000 bonuses to 150 employees:

“EMKAY, Inc. has announced that all full-time employees will receive a $1,000 bonus in response to the tax reform that was just signed by President Trump. EMKAY, a privately-owned fleet management company, wasted no time in taking action to pass the benefits of this reform on to their team.

“With a brighter future for EMKAY and more profitable growth, naturally we are hopeful that these tax changes will become permanent.  And then, if so, we will be able to share even more of the tax cut benefits with you – our employees and most valuable asset,” EMKAY President Greg DePace said in a statement to EMKAY employees.” – Jan. 2018 Emkay Inc. statement

LincolnWay Community Bank (New Lenox, Illinois) – $1,500 bonus for 33 permanent employees:

“LincolnWay Community Bank today announced plans to award a one-time $1,500 bonus to most of its employees on February 6.

"We are pleased to be able to provide this additional reward to our employees for continuing to deliver outstanding service to our customers" said Mark Stevens, LincolnWay Community Bank President. "This investment in our employees was made possible by the new tax reform law."

LincolnWay Community Bank currently has 33 permanent employees, at three branches in New Lenox, Mokena and Chicago, who are eligible to receive the tax reform bonus.” -- Feb. 5, 2018 LincolnWay Community Bank announcement excerpt

AT&T -- $1,000 bonuses to 10,775 Illinois-based AT&T employees. Nationwide, the company also announced a $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

Lowe's -- 5,000 employees at 38 stores and one distribution center in Illinois. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Home Depot -- 76 locations in Illinois, bonuses for all hourly employees, up to $1,000.

Wal-Mart – 162 locations in Illinois -- 34,600 Illinois-based Walmart and Sam's Club employees are receiving tax reform bonuses ranging from $200 - $1,000 for a state total of $13,720,800. More than 20,000 Illinois-based Walmart and Sam's Club employees are receiving wage increases, for a total of more than $32 million. The starting wage rate was raised for all hourly employees to $11. The company also announced expanded maternity and parental leave and $5,000 for adoption expenses.

U-Haul (Multiple locations in Illinois) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Apple (Apple store locations in Lincoln Park, Michigan Ave, Deer Park, Main Place, Northbrook, Oakbrook, Orland Square Mall, Woodfield, Old Orchard) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

CarMax (Locations in Bloomington, Champaign, and Chicago) – $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

Cintas Corporation (Multiple locations in Illinois) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

Comcast (Multiple locations in Illinois) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.

Chipotle Mexican Grill (Multiple locations in Illinois) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Ryder (21 locations in Illinois) -- Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in Illinois) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

Wells Fargo – 19 bank locations in Illinois; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

AbbVie, Inc. (North Chicago, Illinois) -- permanent salary increases for all non-executive employees; increased profit sharing for employees; one additional holiday for U.S. employees.

American Community Bank & Trust (Woodstock, Illinois) -- $500 bonus to each employee; additional employees will be hired.

MB Financial, Inc. (Chicago, Illinois) – base wage increased to $15 per hour; tax reform bonuses; and $7.5 million additional charitable contributions:

  MB Financial, Inc., the holding company for MB Financial Bank, N.A. (“MB”), announced today that MB will raise the minimum wage paid to its employees, issue certain one-time bonuses, and donate $7.5 million to the disadvantaged communities in which it operates.

Mitch Feiger, President and CEO MB Financial, Inc., commented, “MB has long believed that our future is undeniably connected to our communities and employees. Because we hold this belief so closely it is only natural that we share the benefits of tax reform.”

As a result of the recently enacted Tax Cuts and Jobs Act of 2017 MB will contribute $7.5 million to the MB Charitable Foundation, specifically to help the most disadvantaged communities where MB operates for the creation of affordable housing, strong educational programs, vital community services, and to accelerate economic development. “Giving is a cornerstone of our culture,” said Rose Bouman, Executive Vice President of MB Financial Bank, “Our programs such as ‘MB on the Block’, wherein over 500 MB employees dedicate a day of service to the community each year, are at the heart of who we are.”

Also as a result of the new tax legislation, MB will raise its minimum wage to $15 per hour and pay certain one-time bonuses. It’s expected that nearly 75% of MB’s approximately 3,600 team members across the country will participate in these new compensation measures. “Our employees are truly different. Their passion sets them apart. It’s no wonder they go beyond every day for our clients, our communities, and each other. I’m thrilled we can pass along the benefits of tax reform to them,” commented Feiger. – Jan. 2 2018, MB Financial, Inc. press release

Turning Point USA (Lemont, Illinois) -- $300 bonuses to all 115 employees.

BancorpSouth Bank (insurance office is based in Itasca) –  pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees: 

BancorpSouth Bank (NYSE: BXS) today announced an additional investment in its employees, which includes pay increases and /or one-time bonuses to nearly all non-commissioned employees.

The investment of over $10 million in 2018 will benefit 96% of the Company's non-commissioned workforce. Pay increases were effective January 1, 2018.

"We are proud to reward our team with this opportunity since the Tax Cuts and Jobs Act should benefit everyone" said Dan Rollins, Chairman and CEO. "BancorpSouth's continued and future success is based on the economic vitality of the communities we serve and taking care of our teammates allows us to provide the very best service to our customers, communities and shareholders." – Jan. 3, 2018 BancorpSouth Bank press release

-----------------------

The increased compensation overall at BancorpSouth affected more than 70 percent of all employees, and provided a $1,000 bonus to nearly 20 percent of all employees.

BancorpSouth employs some 4,000 employees in more than 230 locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, plus an insurance location in Illinois. – Jan. 4, 2018 Daily Journal/BizBuzz article

BMO Harris Bank (Chicago, Illinois) – base wage raised to $15 per hour; increased charitable donations:

“BMO Harris Bank has joined an increasing number of financial institutions in raising its minimum hourly wage to $15.

The bank cited the recent federal tax reform, which lowered the corporate income tax rate, in its decision to boost employee compensation.

The new rate is effective immediately, the company said Tuesday. BMO Harris, which is based in Chicago and owned by Toronto's BMO Financial Group, has more branches than any other bank in Wisconsin.

BMO Harris also said it will increase its level of philanthropic community giving by 10% in 2018.

“We’re pleased to share the benefits of the strong economic conditions, and the effects of the recent tax reform changes, with our employees and communities,” David Casper, president and chief executive of BMO Harris Bank, said in a statement. “Our success is tied directly to the communities we serve, and we’re proud of the exceptional job our employees do in providing a great customer experience.” – Jan. 31 2018, Milwaukee Journal Sentinel article excerpt

Boeing Company (Chicago, Illinois) -- $100 million for workforce development; $100 million for infrastructure and facilities; $100 million in charitable donations:

Boeing [NYSE: BA] Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing.

"On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States," said Muilenburg. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country."

The simpler tax code and lower tax rate are closer to those enjoyed by Boeing's global competition and will have a clear and direct benefit to Boeing, its employees, and other stakeholders.

"For Boeing, the reforms enable us to better compete on the world stage and give us a stronger foundation for the investment in innovation, facilities and skills that will support our long-term growth," Muilenburg said.

While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:

  • $100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing's focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
  • $100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
  • $100 million for "workplace of the future" facilities and infrastructure enhancements for Boeing employees.

"Each of these investments benefits Boeing's most important strength – our employees – and reflects the real-time impact and economic benefit of the reforms," said Muilenburg. – Dec. 20, 2017 Boeing Company press release

Kraft Heinz Company (Chicago) – $1.3 billion pre-funding of post-retirement benefit plans; $800 million in capital expenditures; $300 million in strategic investments:

“Since the HR-1 Tax Cuts and Jobs Act was signed into law, we have already taken actions and are accelerating key business initiatives. This includes approximately $300 million in strategic investments to build our capabilities, our people skills and our brands; more than $800 million in capital expenditures to improve quality, safety and capacity; as well as $1.3 billion to pre-fund our post-retirement benefit plans. – Feb. 16 Kraft Heinz statement by David Knopf, CFO

First Midwest Bancorp, Inc. (Itasca, Illinois) – Base wage raised to $15 per hour; $1,035 bonuses for 85% of employees; $2 million in additional charitable contributions:

First Midwest Bancorp, Inc. (“First Midwest”) (NASDAQ:FMBI), the holding company of First Midwest Bank, announced today expanded investments in its colleagues and communities.  These investments include the following:

  • An increase in our minimum pay rate to $15 for hourly employees;
  • A special bonus up to $1,035 to nearly 85% of our colleagues; and
  • A $2 million contribution to the First Midwest Charitable Foundation.

“As we celebrate 35 years as First Midwest, our continuing investment in our colleagues, communities and business stands at the core of our success.  I am therefore very pleased to take these important actions,” said Michael L. Scudder, Chairman and Chief Executive Officer of First Midwest.  “The growth of our Company as well as the expected benefits from tax reform position us to reward our colleagues for their commitment and hard work as well as expand our investment in the communities in which we live and work.” -- Jan. 11, 2018 First Midwest Bancorp, inc. press release

Central Bancompany, Inc. (locations in O'Fallon, Millstadt, and Columbia) – Bonuses to 2,500 employees: $1,000 bonuses for full time employees; $500 bonuses for part time employees:

In December 2017, U.S. Congress passed a comprehensive tax reform package to encourage economic growth across the nation. As a result of the federal tax reform, Central Bancompany plans to distribute a special bonus to its more than 2,500 employees residing across four states – Missouri, Kansas, Illinois, and Oklahoma. Full-time employees will receive a $1,000 bonus and part-time employees will receive a $500 bonus.

“The economic development that should ensue as a direct result of the new tax reform legislation will positively affect the more than 66 communities we serve,” said Bryan Cook, Chairman and CEO of Central Bancompany, Inc. “We are excited for the opportunity to reward our dedicated and hard-working employees with this special bonus as a token of our gratitude for all that they do for our customers, businesses, and communities.” – Jan. 5, 2018 Central Bancompany press release

Wintrust Financial Corporation (Rosemont, Illinois) -- base wage raised to $15 per hour:

Town Bank is joining a growing list of Wisconsin and national banks in raising the minimum hourly wage for employees to $15.

Town Bank, a Hartland-based bank owned by Wintrust Financial Corp., of Rosemont, Ill., said Wednesday the decision to increase the pay rate for eligible staff "comes as a result of the recently enacted tax reform legislation and the bank’s continued commitment to its employees."

Wintrust said it expects that more than 600 employees will benefit from the pay raise across its family of more than 150 bank locations, including Town Bank's 19 branches in Wisconsin. -- Jan. 24 2018, Milwaukee Journal Sentinel article excerpt

Discover Financial Services (Riverwoods, Illinois) – Base wage raised to $15.25 per hour; $1,000 bonuses for more than 15,000 non-executive employees; additional investments and charitable donations to be announced:

Discover today announced plans to raise its minimum hourly pay rate to $15.25 for virtually all of its full-time U.S. employees as a result of the recent corporate tax reductions after granting a $1,000 bonus to more than 15,000 non-executive employees earlier this month.

The new minimum rate will take effect later this year and ultimately will impact more than 7,000 employees.

 The company plans to make additional investments in its people and will increase corporate responsibility efforts in the communities in which it operates. – Jan. 24, 2018 Discover Financial Services press release

Bank of America (Multiple locations in Illinois) -- Illinois-based employees of Bank of America will receive $1,000 bonuses.

MainSource Financial Group (branch locations in Kankakee, Grant Park, Hoopeston, and Watseka) – Base wage raised to $15 per hour:

MainSource Financial Group (NASDAQ: MSFG) will raise the starting pay and minimum hourly rate to $15 an hour effective immediately for all of its non-exempt, non-commissioned employees. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.

Approximately 1,000 associates are employed throughout the MainSource footprint in Ohio, Indiana, Illinois and Kentucky. The pay increase will affect over 200 employees.

Archie M. Brown, Jr., President and CEO, stated, "The recently passed tax legislation is anticipated to create significant savings for our company. We are pleased to direct a portion of this savings back to many of our employees with a meaningful increase in pay." – Jan. 3, 2018 MainSource Financial Group press release

Note: If you know of other Illinois examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

More from Americans for Tax Reform


Pages

×