Comprehensive List of Tax Hikes in Obamacare
Next week, the U.S. House of Representatives will be voting on an historic repeal of the Obamacare law. While there are many reasons to oppose this flawed government health insurance law, it is important to remember that Obamacare is also one of the largest tax increases in American history. Below is a comprehensive list of the two dozen new or higher taxes that pay for Obamcare’s expansion of government spending and interference between doctors and patients.
Individual Mandate Excise Tax(Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following
|
1 Adult |
2 Adults |
3+ Adults |
2014 |
1% AGI/$95 |
1% AGI/$190 |
1% AGI/$285 |
2015 |
2% AGI/$325 |
2% AGI/$650 |
2% AGI/$975 |
2016 + |
2.5% AGI/$695 |
2.5% AGI/$1390 |
2.5% AGI/$2085 |
Exemptions for religious objectors, undocumented immigrants, prisoners, those earning less than the poverty line, members of Indian tribes, and hardship cases (determined by HHS)
Employer Mandate Tax(Jan 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. This provision applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer).
Combined score of individual and employer mandate tax penalty: $65 billion/10 years
Surtax on Investment Income ($123 billion/Jan. 2013): This increase involves the creation of a new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single). This would result in the following top tax rates on investment income
|
Capital Gains |
Dividends |
Other* |
2010-2012 |
15% |
15% |
35% |
2013+ (current law) |
23.8% |
43.4% |
43.4% |
2013+ (Obama budget) |
23.8% |
23.8% |
43.4% |
*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations. It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income. It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. The 3.8% surtax does not apply to non-resident aliens.
Excise Tax on Comprehensive Health Insurance Plans($32 bil/Jan 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). For early retirees and high-risk professions exists a higher threshold ($11,500 single/$29,450 family). CPI +1 percentage point indexed.
Hike in Medicare Payroll Tax($86.8 bil/Jan 2013): Current law and changes:
|
First $200,000 |
All Remaining Wages |
Current Law |
1.45%/1.45% |
1.45%/1.45% |
Obamacare Tax Hike |
1.45%/1.45% |
1.45%/2.35% |
Medicine Cabinet Tax($5 bil/Jan 2011): Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)
HSA Withdrawal Tax Hike($1.4 bil/Jan 2011): Increases additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
Flexible Spending Account Cap – aka“Special Needs Kids Tax”($13 bil/Jan 2013): Imposes cap of $2500 (Indexed to inflation after 2013) on FSAs (now unlimited). . There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.
Tax on Medical Device Manufacturers($20 bil/Jan 2013): Medical device manufacturers employ 360,000 people in 6000 plants across the country. This law imposes a new 2.3% excise tax. Exemptions include items retailing for less than $100.
Raise "Haircut" for Medical Itemized Deduction from 7.5% to 10% of AGI($15.2 bil/Jan 2013): Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI; it is waived for 65+ taxpayers in 2013-2016 only.
Tax on Indoor Tanning Services($2.7 billion/July 1, 2010): New 10 percent excise tax on Americans using indoor tanning salons
Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D($4.5 bil/Jan 2013)
Blue Cross/Blue Shield Tax Hike($0.4 bil/Jan 2010): The special tax deduction in current law for Blue Cross/Blue Shield companies would only be allowed if 85 percent or more of premium revenues are spent on clinical services
Excise Tax on Charitable Hospitals(Min$/immediate): $50,000 per hospital if they fail to meet new "community health assessment needs," "financial assistance," and "billing and collection" rules set by HHS
Tax on Innovator Drug Companies($22.2 bil/Jan 2010): $2.3 billion annual tax on the industry imposed relative to share of sales made that year.
Tax on Health Insurers($60.1 bil/Jan 2014): Annual tax on the industry imposed relative to health insurance premiums collected that year. The stipulation phases in gradually until 2018, and is fully-imposed on firms with $50 million in profits.
$500,000 Annual Executive Compensation Limit for Health Insurance Executives($0.6 bil/Jan 2013)
Employer Reporting of Insurance on W-2(Min$/Jan 2011): Preamble to taxing health benefits on individual tax returns.
Corporate 1099-MISC Information Reporting($17.1 bil/Jan 2012): Requires businesses to send 1099-MISC information tax forms to corporations (currently limited to individuals), a huge compliance burden for small employers
“Black liquor” tax hike(Tax hike of $23.6 billion). This is a tax increase on a type of bio-fuel.
Codification of the “economic substance doctrine”(Tax hike of $4.5 billion). This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed.
More from Americans for Tax Reform
How the Republican Tax Cuts Are Helping Ohio

Ohio is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:
826,160 Ohio households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group in every Ohio 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.
4,139,650 Ohio 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.
132,140 Ohio 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, Ohio residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, Columbia Gas, Ohio Edison, Cleveland Electric Illuminating Company, Toledo Edison, Duke Energy Ohio, Inc., Dominion Energy Ohio, Metropolitan Edison Company, Pennsylvania Electric Company, and Pennsylvania Power Company (see below) all passed their tax savings on to their customers.
Thanks to the tax cuts, Ohio businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
Conger Construction Group (Lebanon, Ohio) – Because of the Tax Cuts and Jobs Act, the company was able to double the amount of employees, offer bigger bonuses, give more paid time off, and provide better healthcare benefits to workers.
“Justin Conger, owner and president of Conger Construction Group in Lebanon, Ohio, a C corporation, attributes the explosion of his business to the TCJA’s flat corporate tax rate of 21 percent, and he thinks his company’s success indicates the health of the overall economy.
“Construction is a lagging indicator of the economy,” he told members of the House Committee on Small Business on Wednesday. “If our clients or other businesses are not growing, expanding, or re-investing in their facilities, there is no need for commercial construction services. There is a lot of work to be completed before a project can start; from an owner obtaining financing, to architectural drawings being completed, to regulatory approval from local jurisdictions. Businesses all over Ohio are growing and expanding by utilizing the benefits of the TCJA and reinvesting additional generated capital into their businesses. In talking with past, future, and current clients, over 80 percent indicate the reason for their investment in construction services is due to the economy and current tax structure.”
“Conger said the number of employees at his company doubled in the last year and a half, and he’s been offering bigger bonuses, more paid time off and better healthcare benefits to workers because business has been so good. Conger said they’re also expanding office space due to the increased number of employees.”
“Those are real numbers and big numbers in Warren County and Lebanon, Ohio,” he said. – July 25, 2019 Inside Sources article
Tony Rankins, SOTU Guest (Cincinnati, Ohio) --
According to Politico:
"One of the president’s guests for the speech, the senior administration official noted, would be Tony Rankins — a veteran of the war in Afghanistan who suffered from post-traumatic stress disorder and became addicted to drugs, before getting clean and eventually getting a job in one of the Opportunity Zones created by the Tax Cuts and Jobs Act in Cincinnati.
Rankins’ hometown paper, the Cincinnati Enquirer, has more on him and his job with R Investments, described as a Denver company that does development work in Cincinnati and trained Rankins in carpentry and other skills." -- February 3, 2020 Politico article
Crane Development (Toledo, Ohio) -- The local real estate development company established Library Square Opportunity Fund to acquire and reposition four blighted and distressed three-story buildings in downtown Toledo:
The buildings will be transformed into a vibrant mixed-use corridor with ten residential units and four new commercial spaces. The $1.75MM OZ project has attracted $500,000 of equity from accredited investors and provides the added benefit of Ohio's Opportunity Zone Income Tax Credit which gives investors a 10% return during the construction period. The project was awarded US-EPA assessment grant funds and will utilize facade grants through a City of Toledo program funded by CDBG. Library Square will also apply for a CRA tax abatement which will protect the buildings from property tax increases resulting from the improvements for the next twelve years. Renovations have commenced and the project is expected to be completed by the end of 2020. Many Toledo neighborhoods, including downtown, have experienced decline resulting from disinvestment over the last twenty years, leading to a poverty rate almost twice the national average. The Opportunity Zone program incentives have driven investment into the City of Toledo and will make a tangible impact on job growth and the revitalization of downtown. -- May 20, 2020 Crane Development statement
Somera Road Inc. - Cleveland (Cleveland, Ohio) -- The company is renovating an office building and is converting it into a "modern, creative office space" located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
A downtown office building on Bolivar Road will soon be renovated by a New York-based investment firm that recently purchased the property.
Somera Road Inc., which invests in commercial real estate, has acquired a 140,000-square-foot building at 1020 Bolivar Road, formerly the home of the city- and county-run workforce development office of Ohio Means Jobs. The sale and renovation plans were announced Monday by Cushman & Wakefield/Cresco Real Estate, which represented Somera Road in its search for property in Cleveland.
The firm plans to take advantage of the federal Opportunity Zone program, which provides incentives to invest in Census tracts designated as economically distressed. Somera Road plans to convert the building's three office floors into "modern, creative office space." The property also includes a 400-space covered parking garage and is located in downtown's Gateway District.
A sale price was not disclosed.
"Somera Road has been investing in the Cleveland area for a long time," Matt Schagrin, vice president of asset management at Somera Road, said in a statement. "We're particularly excited about this building because traditionally, creative office space has lagged in Cleveland versus other markets."
Work has begun on a new lobby and a rooftop patio that will overlook Progressive Field. The project will preserve exposed brick and beams "to create a modern, industrial aesthetic," according to a news release.
The local office of the statewide Ohio Means Jobs program left the Gateway District property for an office in the former Whitlatch Building at 1910 Carnegie Ave. in 2017, according to a Plain Dealer story. -- April 8, 2019 Plain Dealer article
Haydocy Airstream & RV (Columbus, Ohio) -- The company is building an RV facility in an Opportunity Zone created by the Tax Cuts and Jobs Act:
A hotel next to Hollywood Casino Columbus may still be years away, but visitors will soon get another option for staying next door to the West Side casino.
The owner of Haydocy Airstream & RV plans a $6 million "upscale RV resort" on 20 acres between his W. Broad Street dealership and the casino. The park, called Road Adventures Resort, would include a clubhouse with grab-and-go food, a fitness center and a saltwater lagoon. Visitors will be able to park their own RV or rent one from Road Adventures, the RV-rental operation Haydocy launched two years ago.
Shuttle service to and from the casino will be provided, as will bike rentals.
Company president Chris Haydocy has reached a tentative agreement to buy the land from Gaming and Leisure Properties Inc., the real-estate affiliate that spun off from Hollywood Casino parent Penn National Gaming several years ago.
"This will be unlike any other RV park in the Midwest," said Haydocy. He added that there are a number of other casinos around the country with RV parks next to them, including Rising Star Casino Resort along the Ohio River in Indiana.
The project would benefit from the federal Enterprise 360 Opportunity Zone Fund initiative established in 2017 to encourage investments in specific census zones across the nation. Haydocy said that would bring an estimated $2 million of funding to help offset the $6 million project cost, making it viable for him. -- October 26, 2018 Columbus Dispatch article
Bendix Commercial Vehicle Systems LLC (Elyria, Ohio) - Invested in new machinery, added new shift rotations:
Bendix Commercial Vehicle Systems LLC, an Elyria, Ohio, vehicle-parts supplier, has seen demand for its brakes and other products surge over the past year and a half as the transportation industry has picked up steam. To meet that demand and maximize capacity, the company has increased investment in machinery and has added a rotation that allows it to run full shifts seven days a week. - July 17, 2018, Wall Street Journal article excerpt
Bar Cento (Cleveland, Ohio) – The tax cuts allowed the bar to add new jobs and invest more in their facility:
Sam McNulty, co-founder of multiple Cleveland brewery/restaurants including Market Garden Brewery and Bar Cento, credited the tax break with helping his operations expand at an accelerated rate, "which in our case meant several million dollars of investment in our facility as well as the creation of a large number of full-time positions."
Not having certainty for the tax cut beyond next year could stymie other, more long-term investments.
"As in life, so it goes in business, where if the future is uncertain, you are more likely to be less secure and optimistic and thus more conservative and frugal," McNulty said. "There's not a bank on the planet that will finance a business that has only a one-year lease. And so a one-year extension is appreciated, but it is not enough to really fuel this growing industry and reach the full promise of the economic benefits of local craft beer." – Dec. 17, 2018, Crains Cleveland article.
Ariel Corporation (Mount Vernon, Ohio) – increase wages, expand business and increase employee benefits:
Karen Buchwald Wright, the Chairman, CEO and President of the Ariel Corporation, told the NAM that tax reform is helping the company improve the quality of life for their employees and the entire community of Mt. Vernon.
Ms. Wright told the NAM that the company is using tax reform the further wages and expand benefits for her employees:
- Tax reform means “reinvesting in the business,” Karen said. They plan to further grow Ariel’s manufacturing capabilities, provide even better pay and benefits for employees, and continue giving back to the community.
- Last year, before tax reform was even discussed, Karen said that Ariel gave across-the-board pay increases because she had repeatedly read that due to high taxes and an overwhelming regulatory climate, “national wages throughout manufacturing had essentially been flat for 20 years,” Karen explained. “So, across the board, we gave everyone a 13% increase in wages,” she said.
- Because of tax reduction, Karen reported that Ariel is moving forward with further significant raises in 2018, thanks to additional profits the company can invest in both people and the “tools” they need to do their jobs. Ariel will offer employees performance-based raises of up to 4.25%, on top of what they already received last year. Tax reform also allowed improvements and increases in the company’s generous profit-sharing and retirement programs. – April 17, 2018 National Association of Manufacturers news article excerpt
Opportunity Zone Development Group (Columbus, Ohio) -- The company is planning on finishing a project to build homes out of shipping containers and is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
It was meant be the largest residence in the nation built from shipping containers, but for months the "Cargominium" has sat unfinished and neglected on the East Side, more than two years after construction began.
Now, a Columbus developer is stepping in to rescue the project on Old Leonard Avenue, which contains 25 apartments intended to house tenants transitioning out of prison, homeless shelters or addiction.
"We will finish construction within 12 months. We'll continue to meet the mission, and we'll house folks who need a second chance," said Graham Allison, a partner with Brian White in the Opportunity Zone Development Group.
The development group will also finish developing the CargoHome sister project, single-family homes built of shipping containers on Bassett Avenue, around the corner from the Cargominium. Construction stopped on that project after one of the homes was framed in.
The nonprofit organization Nothing Into Something Real Estate (NISRE) announced the Cargominium in late 2016 and delivered 54 shipping containers to the site in February 2017.
At the time, the project was thought to be the largest residential project in the nation built of shipping containers. It has since been surpassed by other projects, including a four-story housing development in Los Angeles built of containers that will include 84 apartments.
After the Cargominium containers were stacked, cut into apartments and wrapped with a stucco skin, work came to a halt last year.
NISRE founder and CEO Michele Reynolds said work stopped after problems arose with the project's developer, AES Development, and general contractor, Chelsi Technologies.
"The Cargominium project stopped construction because we terminated our former general contractor and developer for failure to perform," said Reynolds, who founded her faith-based nonprofit housing organization in 2006.
Messages left with Chelsi Technologies President Barry Cummings and AES Development principal Derrick Pryor were not returned.
Bankruptcy threatened the project when Reynolds started speaking with Allison and White late last year about funding, after the site was included in a federal "opportunity zone," which allows tax benefits for investors. Reynolds and Allison said the funding would not have been possible without the opportunity zone.
"The opportunity zones salvaged our project," Reynolds said. "If it had not been for this being in a zone at the right time, I don't know where the Cargominium would be." -- April 22, 2019 Columbus Dispatch article
SmithFly (Piqua, Ohio) -- The sporting company is moving locations and will now be located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
The Piqua Planning Commission on Tuesday approved special uses for businesses that are headed to Piqua, including Wright-Patt Credit Union, a new crossfit gym, and the fly-fishing equipment manufacturing business SmithFly.
The Planning Commission first approved a special use request allowing drive-thru kiosks at 1284 E. Ash St., where a Wright-Patt Credit Union is expected to fill the space currently occupied by the China Garden Buffet.
One of the applicants for this special use request said they will be purchasing and closing on the property in June and Wright-Patt is expected to be the new tenant for the site. The improvements on the site would happen around September.
“It certainly will be a nice addition," Community and Economic Development Director Chris Schmiesing said.
The Planning Commission also approved an indoor commercial recreation use located at the address 125 Bridge St., where a warehouse that is currently located at the site will be turned into a crossfit gym. According to the application, the gym will also house a sports training facility, physical therapy, massage therapy, and a smoothie bar.
City Planner Krysten French, in her staff report, described the crossfit gym as providing a “better buffer" in the area between the mix of industrial and residential land uses that is currently there.
Schmiesing said it is becoming “more and more difficult" to re-purpose sites like these warehouses, so the crossfit gym will “put it to good use."
The Planning Commission then approved a custom manufacturing and retail space in the Central Business District located at the address 124 N. Main St., where SmithFly is looking to relocate. SmithFly designs and builds fly-fishing rafts and equipment, as well as inflatables. SmithFly is currently located 210 E. Water St. in Troy, is looking at purchasing and moving to a 10,000 square foot site located at the North Main Street location in Piqua, which is also located in Piqua's Opportunity Zone. -- April 15, 2020 Piqua Daily Call article
Alpha Capital Partners (Columbus, Ohio) -- The company is building townhomes in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Pittsburgh based real estate investment firm and leader in opportunity zone investment projects has just acquired Hamilton Creek Apartments (14 Oak Road), a 45-acre townhome-style multifamily property in Columbus, Ohio.
Alpha wants to bring a new vibe to this established community. Built in 1960, the 376-unit rental community caters to mid-sized families and has a unit mix of two-bedroom and three-bedroom townhomes. The property is conveniently located next to the Rickenbacker International Airport at the intersection of Alum Creek Drive and London Groveport Road Southeastern part of Columbus, Ohio.
Alpha plans to rebrand Hamilton Creek and spend $9 million in upgrades on the Columbus property. The first phase of redevelopment for Hamilton Creek will commence in the fall and includes exterior renovations and interior updates. The redevelopment project will be managed by Alpha's in-house construction services team and is slated to be completed by 2021. "We are excited about what Alpha is going to do and how we plan to add value for Hamilton Creek's current and future residents. Our redevelopment efforts will give this former military housing the necessary boost it needs to beautify the neighborhood and attract new residents," said CEO, Jide Famuagun.
While this property is in an opportunity zone area, its location was equally an attraction for Alpha Capital Partners. The property is approximately 14 miles from downtown Columbus and is four miles from the outer loop of I-270. Famuagun stated, "What also drew our attention to this property was the massive industrial distribution centers and the boom in employment these facilities brought." -- September 6, 2019 Alpha Capital Partners press release
Dynalab Inc. (Reynoldsburg, Ohio) – Because of the Tax Cuts and Jobs Act, the company was able to invest in new manufacturing equipment, employees received a bonus as well as a larger take home pay:
On a recent trip to Ohio, President Donald Trump proclaimed: “America is once again open for business.” Evidence for that statement? The Tax Cuts and Jobs Act of 2017.
As the president and chief executive officer of Dynalab Inc., a small-business manufacturer of electronic products in central Ohio, I can say that we already see many benefits provided by the corporate and personal tax-rate reductions of the 2017 act:
• Larger 2017 year-end bonuses and greater take-home pay for most of our associates.
• $2 million-plus in new manufacturing equipment.
Although final regulations have not been released, and more needs to be done to rein in the Internal Revenue Service, our country’s economy is benefiting. The growth in gross domestic product, jobs creation and the stock market tell the tale.
Gary James
Reynoldsburg – March 22, 2018, Columbus Dispatch article.
BWX Technologies, Inc. (Ohio and Indiana) -- Hiring more than 170 new employees because of tax reform. The company is also investing $210 million in these states because of 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
Mihaus (Cincinnati, Ohio) -- The company plans to build an apartment building in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Indianapolis-based developer Milhaus plans to build a $77 million, 344-unit apartment building near the Ohio River downtown, along with a 390-space garage, a project known as Artistry Cincinnati.
“Artistry will offer the best of all aspects of Cincinnati urban living – close proximity to the city’s best employment center and entertainment districts, all while being in a quiet location along the beautiful Ohio River Trail” said Jake Dietrich, MIlhaus’ development director. "Skyline, park and river views, along with great recreation and entertainment opportunities just steps away are all reasons why we know residents will be eager to live here. Milhaus is excited to finally provide the development solution this site has long been looking for - adding significant housing that will help Cincinnati continue to attract new employers and residents to this great city."
...
The project is within a federal Opportunity Zone. -- June 20, 2019 Business Courier of Cincinnati article
Six Hundred Downtown (Bellefontaine, Ohio) - Opening a new location, introducing employee healthcare benefits:
“Brittany, where’s the pizza?” Trump asked Saxton. She said she’d been able to use the tax cuts to open a second location and provide health benefits to some managers and thanked Trump at the podium. - April 12, 2018, WTOP article excerpt
Warped Wing Brewing Co. (Dayton, Ohio) – The brewery plans to use savings from the tax cut to give raises to employees and buy new equipment:
“It’s a big deal for most of the breweries in Southwest Ohio,” said John Haggerty, co-owner of Warped Wing Brewing Co. in downtown Dayton.
Without the tax cut, beer brewers and most alcoholic-beverage producers would have been looking at a higher tax bill the second week in January. The tax cut also reduced the amount that distilleries paid on the first 100,000 proof gallons from $13.50 to $2.70 per gallon. A proof gallon is a gallon of spirits at 50 percent alcohol.
“We’ve been waiting for this. We planned for it to go up in our strategic budgeting for next year, but it’s hard because it affects decisions like giving raises to employees, buying new equipment, future bank loans and ultimately the price beer drinkers would have to pay. – Dec. 30. 2019, Dayton Daily News article.
RPM International (Medina, Ohio) - Investing in employee pension plans:
Frank Sullivan, chairman and CEO of Medina-based RPM International, said by putting $50 million as a result of the tax package into RPM's pension plan, the company is boosting its commitment to workers. "It's a reinforcement of the benefit package that we have," Sullivan said. - February 6, 2018, Cleveland.com article excerpt
Market Garden Brewery (Cleveland, Ohio) – The tax cuts allowed the brewery to add new jobs and invest more in their facility:
Sam McNulty, co-founder of multiple Cleveland brewery/restaurants including Market Garden Brewery and Bar Cento, credited the tax break with helping his operations expand at an accelerated rate, "which in our case meant several million dollars of investment in our facility as well as the creation of a large number of full-time positions."
Not having certainty for the tax cut beyond next year could stymie other, more long-term investments.
"As in life, so it goes in business, where if the future is uncertain, you are more likely to be less secure and optimistic and thus more conservative and frugal," McNulty said. "There's not a bank on the planet that will finance a business that has only a one-year lease. And so a one-year extension is appreciated, but it is not enough to really fuel this growing industry and reach the full promise of the economic benefits of local craft beer." – Dec. 17, 2018, Crains Cleveland article.
MetroHealth (Cleveland, Ohio) -- The company announced they will be bringing 250 apartment units near the hospital campus, in an Opportunity Zone created by the Tax Cuts and Jobs Act:
The MetroHealth System announced a planned $60 million investment that will bring approximately 250 apartment units to West 25th Street near the hospital's main campus.
The health care system, working with a private developer, plans to build up to 72 affordable housing units on what is now a parking lot at West 25th Street and Sackett Avenue, and two buildings with up to 190 market-rate apartments at a to-be-determined site on West 25th.
...
MetroHealth, in partnership with NRP Group, also plans to build up to 190 market-rate apartments on West 25th Street. The exaction location and configuration of the two buildings has not been finalized (RDL Architects). DEPICTION
Developers are looking at how to effectively leverage the area's status as an Opportunity Zone to help finance the projects, Zucca said. Opportunity Zones are federally designated, economically distressed census tracts where, under certain conditions, investors receive tax benefits if they invest in real-estate projects or businesses there. -- June 28, 2020 Cleveland Plain Dealer article
Streetside Brewery (Cincinnati, Ohio) – Used savings from the Tax Cuts and Jobs Act to hire more employees and buy new equipment:
Garrett Hickey was among those who were feeling relieved as 2020 arrived. He is a co-owner of Streetside Brewery which does 1,200 barrels a year.
Its per barrel tax would have doubled if President Donald Trump had not signed an extension of the federal alcohol tax cut. As a result, Streetside foresees a steady, unimpeded trickle-down flow from the suds.
"Continue to hire new people, continue to buy new equipment, continue to work with charitable places," said Hickey. – January 3, 2020, WLWT5 article.
Dominion Energy Ohio (Columbus, Ohio) – Because of the Tax Cuts and Jobs Act corporate tax rate cut, the utility provider is able to issue credits on bills.
The Public Utilities Commission of Ohio (PUCO) today adopted an agreement that authorized Dominion Energy Ohio (Dominion) to establish a credit on gas customer bills to reflect the impact of the Tax Cuts and Jobs Act (TCJA) of 2017 on its rates.
Dominion will credit residential customers the amount it has over collected, plus interest, since Jan. 1, 2018 under the previous corporate tax rate. The $50.9 million credit will be passed back to all customers over a 12 month period.
Dominion will return to customers annually approximately $18.9 million, which reflects the remaining tax savings not currently accounted for in rates, on a going-forward basis, until the Commission approves updated rates through a distribution rate case. Dominion is expected to file an application with the PUCO for its next distribution rate case in 2024.
Dominion will return to customers normalized excess deferred income tax (EDIT), estimated by the utility to be approximately $416 million, over a federally prescribed time period of approximately 38 years.
Dominion will credit customers non-normalized EDIT, estimated by the utility to be approximately $181 million, over approximately a six-year period.
A residential customer will see a bill reduction of approximately $5.80 per month for the first year, a $3.15 reduction in years two through six and a $1.55 reduction in year seven and beyond. – Dec. 5, 2019 WKTN article.
R+L Carriers (Wilmington, Ohio) -- $1,000 bonuses for 12,000 employees:
Wilmington-based global transportation company R+L Carriers announced this week it would issue bonuses of up to $1,000 for all its employees, citing the economic benefits from the Tax Cuts and Jobs Act.
“R+L Carriers is just the latest company we’ve seen invest in their employees as a result of tax reform,” U.S. Rep. Steve Stivers (R-15th District) said.
“For folks in Wilmington and across the country, these bonuses can be used for everyday needs, pay for a car repair, or be put in a savings account. This money can make a real difference for families, and I applaud R+L for their commitment to their employees,” the congressman added.
Family owned and operated, R+L Carriers began in 1965 with Ralph L. “Larry” Roberts Sr.’s purchase of a single truck. Today, the company serves all 50 states, Canada, Puerto Rico, the Dominican Republic, and many Caribbean islands with nearly 15,000 tractors and trailers, and more than 12,000 employees, stated a media release from the Office of Congressman Steve Stivers. – Feb. 16, 2018 Wilmington News Journal article excerpt
The Belden Brick Company (Sugarcreek, Ohio) -- Made investments in new equipment and capital improvements because of tax reform.
“I want to thank Bob Gibbs for his role in the successful efforts to reduce taxes and regulations, said Bob Belden, chairman, president and CEO of The Belden Brick Company. These reforms have made it easier for The Belden Brick Company to invest in new equipment and capital improvements. His efforts are a key part of rebuilding and sustaining a healthier manufacturing climate in Ohio and across the United States.” -- August 14, 2018 NAM Shopfloor Blog
Rockwell Automation (Twinsburg, Ohio) -- Because of the Tax Cuts and Jobs Act, the company was able to raise wages, add new jobs, and buy new equipment.
“Manufacturing’s success hinges on having a highly skilled production workforce that supports the advanced technologies that are essential to modern manufacturing competitiveness, said Bruce Quinn, Rockwell Automation vice president of public affairs. No matter how much you automate, people remain your most important asset. We are confident that the impact of U.S. tax reform on our customers could strengthen our future performance. Corporate tax reform enables us to use excess cash to invest in organic growth and acquisitions.” -- August 13, 2019 NAM Shopfloor Blog
ProMedica (Toledo, Ohio) - New headquarters
Today, U.S. Senator Rob Portman (R-OH), as part of his Results for the Middle-Class Tax Reform Tour, visited ProMedica Headquarters in Toledo. The headquarters was partially funded through New Markets Tax Credits and Historic Tax Credits, tax incentives Senator Portman fought to preserve in the Senate version of the Tax Cuts & Jobs Act and the final bill which ultimately became law. - March 27, 2018, Sen. Rob Portman press release excerpt
Kroger (Cincinnati, Ohio) – The nationwide grocery store chain announced plans to increase wages, improve their 401(k) plan, implement an improved education assistance program, as well as more discounts and support programs for employees:
The Kroger Co. (NYSE: KR) today announced new and enhanced long-term associate benefits following the Tax Cuts and Jobs Act, including an industry-leading education assistance program called Feed Your Future, accelerated investments in store associate wages, a more generous 401(k) benefit, and enriched associate discount and support programs.
"The Tax Cuts and Jobs Act is a catalyst that is enabling us to accelerate investments in Restock Kroger, our plan to serve America through food inspiration and uplift," said Rodney McMullen, Kroger's chairman and CEO. "We intend to make significant investments in our associates, to continue redefining the customer experience, and to return value to our shareholders – sharing the benefit with all of our stakeholders in a balanced way.
"I am especially excited to introduce Feed Your Future, Kroger's new, industry-leading continuous learning and education benefit. Many of our associates can attest to the life-changing power of education, and I'm proud to be one of them. Feed Your Future will support both full- and part- time associates, wherever they are on their personal education journey, whether they are pursuing GEDs, MBAs or professional certifications. In this way, we're offering more than a one-time award – we're offering an investment in our associates' future.
"Sharing the benefits of tax reform with our associates and customers will create a more sustainable and stronger business model to support Restock Kroger and beyond. This approach is also consistent with living our purpose: to Feed the Human Spirit."
Feed Your Future: Embracing the Life-Changing Power of Education
Lower federal taxes under the Tax Cuts and Jobs Act have enabled Kroger to introduce Feed Your Future – an education program to encourage lifelong learning and strengthen the company's opportunity culture.
Kroger and its subsidiaries will now offer associates an employee education benefit of up to $3,500 annually ($21,000over the course of employment) toward continuing education and development opportunities including a high school equivalency exam, professional certifications and advanced degrees.
Under the new benefit, Kroger expects to increase by five times its total annual investment in employee education. And in addition to a more generous individual and lifetime benefit, Feed Your Future will now cover all full- and part-time associates following six months of employment.
"We care about our nearly half a million associates' growth and development, and we believe investing in education will support and encourage lifelong learning and reinforce our 'come for a job, stay for a career' opportunity culture," said Mr. McMullen. "We believe that making education benefits available to more associates and at more generous levels than ever before is the best way to support their future."
As part of Feed Your Future, Kroger is also introducing a new educational leave of absence that allows associates to take time off work to focus on approved studies, while maintaining a role with the family of companies and their seniority.
Raising Starting and Overall Wages for Store Associates
In order to increase starting wages and overall wage rates in certain markets, Kroger is utilizing the benefits of the Tax Cuts and Jobs Act to accelerate some of the previously-announced, incremental $500 million investment in associate wages, training and development over the next three years as part of Restock Kroger.
Last month in Cincinnati, for example, Kroger associates ratified a labor agreement with UFCW Local 75 that set the stage for starting wage and overall wage increases in multiple markets across the country. The agreement raised starting wages to at least $10 per hour, and accelerated wage progressions to $11 an hour after one year of service, for store associates in the Cincinnati/Dayton area. Those wage increases went into effect on April 1.
Supporting Associates' Financial Well-Being – Today and in Retirement
To support associates' financial well-being, Kroger and its subsidiaries will increase the company match in the 401(k) Plan to 5% of pay, compared to a 4% match today.
The family of companies is also making its associate discount of 10% off Our Brands products a more consistent benefit across supermarket banners, which will apply to more associates and in more locations than before. This new commitment will expand on the existing associate discount for Our Brands products, which allowed associates to save $53 million in 2017 alone. New associate discounts on general merchandise, home, apparel, and jewelry are also being offered.
Helping Hands: More Help in Times of Need
Kroger's long-standing Helping Hands program, an internal support fund that aids associates during hardships, will receive an additional $5 million in funding and be easier to use across the family of companies.
"It is a point of great pride for Kroger that we are part of the fabric of our communities, and our associates always step up to take care of our customers, neighbors and each other in times of need," said Mr. McMullen. "Helping Hands is just one example of how at Kroger we show care every day and uplift each other in every way – especially when people need it most."
Last fall, as part of the Helping Hands program, Kroger awarded $700,000 in financial grants to support 1,100 associates enduring hurricane-related hardships.
"At Kroger, we are thrilled to have a talented, diverse and unique workforce," said Tim Massa, group vice president of human resources & labor relations. "We care about our associates, and we took the time to thoughtfully consider how to live our purpose and offer meaningful, personalized benefits while helping individuals, families and communities thrive today and in the future."
All of these investments were contemplated in previously-announced guidance. – April 16, 2018, Kroger press release.
UH Rainbow Center (Cleveland, Ohio) - Built a new women’s and children’s center:
U.S. Senator Rob Portman (R-OH), as part of his Results for the Middle-Class Tax Reform Tour, visited UH Rainbow Center for Women & Children and hosted a tax reform roundtable. The UH Rainbow Center for Women & Children’s $26 million capital project was partially funded through New Markets Tax Credits, a tax incentive Senator Portman fought to preserve in the Senate version of the Tax Cuts & Jobs Act and the final bill which ultimately became law. - February 24, 2018, Sen. Rob Portman press release excerpt
Peoples Services Inc. (Canton, Ohio) - Increased wages, employee bonuses, hired new employees, nearly doubled capital investment:
“But thanks to the leadership of President Trump and his commitment to tax reform, I hear new stories every day of how my constituents are doing better under the new law. Just last week, I spoke to Doug Sibila, President, and CEO of Peoples Services, Inc., whos seven state operation is led out of Canton, Ohio. In recent months Peoples Services has raised pay, handed out bonuses, hired more people, and nearly doubled capital investment. All while increasing sales and margins. Stories like that of Doug and his employees are shaping the legacy of tax reform, and that’s a legacy I’m glad to have played a part in.” - July 2, 2018, Rep. Jim Renacci statement on U.S. House Floor
“We’ve increased wages more in the last two years than we have in the last 10 years,” said Doug Siblia, Peoples Services. “Entry-level drivers are making more than $50,000 a year, and our senior drivers are getting closer to $100,000 a year, and here in the Midwest, that’s a nice salary and a way to earn a living. -- August 27, 2019 Spectrum News 1 Article
Fairfield Insulation and Drywall (Lancaster, Ohio) – Because of the Tax Cuts and Jobs Act, the company was able to expand their life insurance benefits and increase their 401(k) match:
Fairfield Insulation and Drywall, a small Ohio-based company, was able to expand life insurance benefits for its employees last year. This year, it will increase its 401(k) match. – April 14, 2019, Fox Business Network article.
GKM Auto Parts Inc. (Zanesville, Ohio) – Providing healthcare benefits to employees:
“Under the Affordable Care Act, our company has faced double digit increases in health care costs year after year, causing us to drop coverage in 2016,” said Kelly Moore, owner of GKM Auto Parts. “Because of the cost savings from tax reform, we are reinstating this important benefit for our employees…” – Kelly Moore, owner of GKM Auto Parts, article excerpt
First Solar (Perrysburg, Ohio) -- Plant expansion, new workforce of 500 associates, and an annual payroll of $30 million:
First Solar cited two reasons for the expansion, more than doubling the company's output: along with higher solar demand, it pointed to changes in the corporate tax rate. Combined with the tariff decision six months ago, the solar company has benefited from the Trump Administration's decisions.
The expansion will cost $400 million, with a workforce of approximately 500 associates and an annual payroll of approximately $30 million. The company said via a statement it "has options for potential further manufacturing expansion in the future," depending on domestic demand for panels.
First Solar says it has invested approximately $3 billion in Ohio since the company's inception, and state and local officials have worked with the company to create a "business-friendly environment." - June 13, 2018, Utility Dive article
Wolf Metals (Columbus, Ohio) – Purchase of new equipment:
“Today, as a result of the new tax reform law, Wolf Metals was proud to announce its plan to purchase new equipment, including a water jet cutter first and then a press brake,” said Jim Wolf, Co-Founder and Owner. “This investment will help our company, help our workers, and help those who rely on us to deliver top-of-the-line product. I want to thank Senator Portman for coming to visit today and for his role in delivering historic tax relief for small businesses like ours who for too long have been saddled with burdensome taxes and over-regulation.” – Jan. 5, 2018 statement, press release of Sen. Rob Portman (R-Ohio)
JSW USA (Mingo Junction, Ohio) -- Committed to $1 billion of new investment in the USA in addition to the hiring or re-skilling of 500 workers:
Today JSW USA CEO John Hritz and Ryan Brindley, an employee at their Mingo Junction, Ohio, state-of-the-art steel mill met with President Trump, Vice President Pence, Ivanka Trump, and other cabinet officials and governors at the White House to celebrate the one-year anniversary of the Pledge to American Workers.
Hritz, who signed the Pledge in January committing to $1 billion of new investment in the United States and the hiring or re-skilling of 500 workers, visited with the President to show his support for the employees of JSW USA and to ensure Administration policies continue supporting a strong steel industry in America. -- July 25, 2019 Business Wire
First Communications, LLC (Akron, Ohio) – $1,000 bonuses and a $3 million capital investment:
When Julia Mueller learned her employer is going to give $1,000 bonuses to her and her co-workers this year, she had an immediate reaction: Tears.
“It means a lot to me. Things are a little tight,” said Mueller, 55, a staff accountant the last three years at First Communications in Fairlawn. The Mogadore resident said she recently divorced, is making payments on foot surgery from last year and also needs new tires for her SUV.
“It’s the only way I’m going to get tires. And I won’t have to keep paying for my surgery,” Mueller said.
Mueller and all other full-time employees of the telecommunications company will get $1,000 bonuses in April that the business says stem from recently enacted federal tax reform.
First Communications said lowering the corporate tax rate from 35 to 21 percent is allowing the company to better invest in employees, in product development and in the local community. The company offers data networking, cloud, voice and managed services throughout the Midwest.
The company will use the tax cuts to make a $3 million capital investment that will allow it to better compete against much larger companies such as Comcast, AT&T and Spectrum, said Mark Sollenberger, chief financial officer.
All of the money generated from the tax cut will go to employee bonuses and to capital improvements, Sollenberger said. First Communications needs to continually invest in its people and products to remain competitive, he said.
“Without the tax cut we would have had to limit ourselves on our new product initiates, but the tax cuts give us the operating room to make sure we have all the latest services our customers need to operate their businesses,” Sollenberger said.
First Communications has 83 Akron-area employees and more than 70 in the Chicago area.
“Being a small business the bonuses are a significant cost to the company,” Sollenberger said. “We have about 150 employees so the board had to give special approval due to the size of the expenditure.”
Other companies have also announced employee bonuses that are tied to the federal tax changes. Among the more widely known companies are Apple, AT&T, Walmart, Chipotle, CVS, Home Depot, JPMorgan Chase, Boeing, Lowes, Starbucks, U-Haul, Verizon and Disney.
Also locally, Orrville-based food company J.M. Smucker Co. said it will pay $1,000 bonuses to nearly 5,000 employees, plus make a $20 million payment to employee pensions and donate $1 million to charities.
Other First Communications employees said they’re happy to be getting extra money.
“It was a very pleasant surprise, to say the least,” said Craig Larkins, 37, a cost analyst who has been at the company 12 years. “It’s like being able to breathe a little bit better.”
Larkins said he is his family’s breadwinner, with his wife staying at home in Akron’s Firestone Park neighborhood with their two children ages 5 and 3.
“We own our home,” Larkins said. The $1,000 bonus likely will be used to pay off home improvements and other expenses, with some money going to other family needs and put into a rainy day fund, he said.
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Mueller, meanwhile, already has plans for any money left over from paying off her surgery bill and buying tires — she will host a party for her children and grandchildren.
“I will probably have a make-your-own pizza night,” she said. -- March 11, 2018 Akron Beacon Journal article excerpts
Seventh Son Brewery (Columbus, Ohio) -- Used savings from the Tax Cuts and Jobs Act to hire more employees, increase production space, increase charitable giving, as well as improve employee benefits.
“Quite simply this tax law has helped my business, Seventh Son in Columbus, grow and enabled me to make it a better place for my employees to work.
Under CBMTRA, small breweries like mine which produce less than 2 million barrels of beer a year saw the federal excise tax on their first 60,000 barrels lowered from $7.00 per barrel to $3.50 per barrel. For us, that meant a savings of around $35,000. As a result, in the last two years, Seventh Son has increased its taproom and production space by 15,000 square feet, opened a second brewery and doubled our staff from 25 to 52.
We also have made improvements to our employee benefits package and increased our role in the community by boosting our charitable giving across several local organizations including Habitat for Humanity, Kaleidoscope, the Godman Guild, Cat Welfare and many others. The improvements to our physical space and our workforce, along with an increased presence in our community, have all been bolstered by the excise tax reduction,” Collin Castore, co-founder of Seventh Son Brewing said. -- August 23, 2019 Columbus Dispatch article.
Bruns General Contracting (Tipp City, Ohio) – Investment in equipment; enhanced retirement benefits:
U.S. Ohio Senator Rob Portman (R) made a stop in the Miami Valley for his Middle-Class Tax Reform Tour.
Portman visited and took a tour of Bruns General Contracting in Tipp City Monday and talked to the employees.
The company said it is investing in more equipment and strengthening its retirement benefits because of the money it expects to save in the next tax reform bill. -- Jan. 15, 2018 WDTN news report
Cintas (Headquarters in Cincinnati, and multiple locations throughout the state) -- Bonuses for 38,000 employees; $1,000 for employees of at least a year, $500 for employees of less than a year.
Tri-State Trailer Sales, Inc. (Hubbard, Ohio and Cincinnati, Ohio) – Increased 401(k) match for employees, to 100% on the first 4% of compensation:
We were very motivated that President Trump and Congress made the tax reform decision to benefit the American People and the Businesses they work for.
I look at all our employees as a big TEAM, its management and ownerships job to coach our team making sure everyone has the necessary tools to be successful in their position, we have done a good job at this and will continue to do so which has enabled us effective January 1st 2018 to implement an increased 401(k) match from approximately 25% to now 100% on the first 4% of compensation.
This new tax reform will also assist our company in continuing to support some of the great non-profit organization we have in the past. – Joe Mancino, CEO/President
STERIS Corp. (Ohio locations in Mentor, Groveport, Lima, and Stow) -- $1,000 bonuses 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
Staub Manufacturing (Dayton, Ohio) – Due to tax cuts, the 37 employees received higher Christmas bonuses:
“After Trump’s tax cuts and reform legislation were enacted last year, Staub says he was able to give larger than expected Christmas bonuses to his employees.” – Jan. 29 2018, WDTN Dayton 2 News
City Machine Technologies Inc. (Youngstown, Ohio) – Because of the Tax Cuts and Jobs Act, the company was able to create more jobs, buy new equipment, and increase wages:
“First and foremost, we are happy to see that the tax reforms will be putting a little extra into our employees’ pockets,” said Claudia Kovach, owner of Youngstown, Ohio-based City Machine Technologies Inc. “When you have less to pay for taxes, you have more money to hire more staff, increase wages and buy new equipment.” – March 23, 2018, NFIB article.
Sheely’s Furniture and Appliance (North Lima, Ohio) – $1,000 bonuses for full-time employees; $500 bonuses for part-time employees; expansion of retail store:
Over 140 employees for a local furniture store will feel their wallets get a lot bigger.
Sheely’s Furniture and Appliance President and CEO, Dale Sheely Jr. announced the bonuses Tuesday morning.
The cause — tax reform, a growing retail footprint, and creating a better working environment for employees.
The bonuses will be given throughout the first quarter of 2018. Full-time employees will receive $1,000 in cash and part-time employees will get $500.
The store also announced a 4,500 square foot expansion to make Sheely’s Bargain Bonus center. The new space will offer exclusive purchases. – Feb. 20, 2018 WKBN 27 report
Sheffer Corporation (Cincinnati, Ohio) -- $1,000 bonuses for all 126 employees:
U.S. Senator Rob Portman (R-OH) today visited Sheffer Corporation, a premier cylinder manufacturing business based in Cincinnati, to tour the facility, meet with employees, and take part in the announcement of the business’s reinvestment into its workers. Sheffer Corporation announced that all 126 employees will be given $1,000 bonuses with the money the business expects to save as a result of the recently-signed tax reform law.
“The historic tax cuts that recently became law are already helping make a difference for middle-class families, creating more jobs, and increasing wages for Ohio workers,” said Portman. “Providing tax relief for middle-class families and reforming our business tax code to create more jobs and higher wages is long overdue, and I was proud to play a significant role in helping craft this law. I’m pleased that we’re already seeing a positive response as employers like Sheffer Corporation reward their workers with higher pay and bonuses—and increase their investments in their businesses and their communities. With the kinds of pro-growth reforms in this tax reform law, I expect this trend to continue in Ohio and across the country.”
“It was truly an honor to host a visit today from Senator Rob Portman,” said Sheffer Corporation President & CEO Jeff Norris. “Senator Portman along with his colleagues and President Donald Trump have been instrumental in bringing forward historic and new tax relief for American companies and for the American people. For many years, business owners have voiced concerns about the burdens associated with high taxes and over-regulation. It is my hope that others will follow and show support for Senator Portman and President Trump as they fight to lower our tax burdens and reduce regulations.” -- Jan. 2, 2018 press release from the office of Senator Rob Portman (R-Ohio)
Kalmbach Feeds (Upper Sandusky, Ohio) - Invested in new equipment and capital improvements because of tax reform.
“I want to thank Rep. Bob Latta for his role in the successful efforts to reduce taxes and regulations, said Paul Kalmbach, President and CEO of Kalmbach Feeds. These reforms have made it easier for Kalmbach Feeds to invest in new equipment and capital improvements. Congressman Latta’s efforts have assisted in supporting a healthier manufacturing climate in Ohio and across the United States.” -- August 23, 2018 NAM Shopfloor Blog
Coach, Truck & Tractor, LLC (Conneaut, Ohio) -- Higher Christmas bonuses thanks to tax reform for this family business with seven employees. Bonus amounts determined by length of service:
"We are a small (7 employees) family business that was contemplating what to give for Christmas bonuses and when the tax bill passed, we decided to give much more than we ever did in past. We gave various amounts based on length of time with us. $500 to two-year employees, $300 and $100 to those who were less than a year." -- Dick Elliott, Coach, Truck & Tractor, LLC
J.M. Smucker Company (Orrville, Ohio) -- $1,000 bonuses to about 5,000 employees; $1 million in increased charitable donations; $20 million contribution to employee pension plan:
With the benefit resulting from U.S. income tax reform, the Company contributed an incremental $20.0 million to its employee pension plan and has announced a one-time bonus of $1,000 to nearly 5,000 employees and a $1 million increase to its charitable contributions. – Feb. 16, 2018 J.M. Smucker Company press release
Fifth Third Bank (Headquarters in Cincinnati and 326 branch locations in Ohio) – $1,000 bonuses for 13,500 employees; base wage raised to $15 per hour:
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 Bancorp press release
Metropolitan Edison Company (Akron, Ohio) - the utility will pass along tax reform savings to customers:
The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.
Additionally, the PUC will consider the effects of federal tax reform on seven other public utilities as part of the investigations for rate cases which have already been filed or are expected to be filed by Aug. 1, 2018. In those situations, the Commission has directed the parties involved to address the impact of any TCJA tax savings as part of the overall rate design for each utility. – May 17, 2018, Pennsylvania Public Utilities Commission Press Release
Pennsylvania Electric Company (Akron, Ohio) - the utility will pass along tax reform savings to customers:
The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.
Additionally, the PUC will consider the effects of federal tax reform on seven other public utilities as part of the investigations for rate cases which have already been filed or are expected to be filed by Aug. 1, 2018. In those situations, the Commission has directed the parties involved to address the impact of any TCJA tax savings as part of the overall rate design for each utility. – May 17, 2018, Pennsylvania Public Utilities Commission Press Release
Pennsylvania Power Company (Akron, Ohio) - the utility will pass along tax reform savings to customers:
The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities.
Additionally, the PUC will consider the effects of federal tax reform on seven other public utilities as part of the investigations for rate cases which have already been filed or are expected to be filed by Aug. 1, 2018. In those situations, the Commission has directed the parties involved to address the impact of any TCJA tax savings as part of the overall rate design for each utility. – May 17, 2018, Pennsylvania Public Utilities Commission Press Release
First Federal Community Bank (Dover, Ohio) – $1,000 bonuses for full-time employees; $500 bonuses for part-time employees; increased charitable contributions.
e-Cycle (Hilliard, Ohio) -- $1,000 bonuses for all 55 employees:
“I’m pleased to announce that e-Cycle paid out our largest bonus in company history this past Friday. One-hundred percent of all of our hourly and salaried employees participated in this bonus program of over $350,000. In addition, due to the greatest tax reform package just passed in U.S. history, we’re celebrating with an additional $1,000 tax reform bonus for all of our 55 employees.” – Feb. 5, 2018 statement by Chris Irion, e-Cycle CEO
First Financial Bancorp (Cincinnati, Ohio) -- 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
KeyCorp (Headquarters in Cleveland and over 200 branch locations in Ohio) – Base wage raised; increased employee retirement plan contributions:
Key will be sharing the expected tax benefits with its employees by increasing its minimum wage and making the additional retirement plan contribution referenced above. These actions will benefit over 80% of our workforce and allow us to reward and invest in the financial wellness of our employees. – Jan. 18, 2018 KeyCorp press release
Duke Energy Ohio, Inc. (Cincinnati, Ohio) – The utility will pass along tax reform savings to customers:
Duke Energy Ohio customers will receive approximately $20 million in annual tax savings on their electric bills beginning this month. The bill reduction is a result of the recent Tax Cuts and Jobs Act, which federal lawmakers passed in late 2017.
"The tax act provides a unique opportunity for us to reduce customers' bills by millions of dollars," said Jim Henning, president of Duke Energy Ohio and Kentucky. "And that's exactly what we're doing here – delivering real savings to our customers."
Duke Energy Ohio also plans to lower its customers' natural gas bills by about $3 million beginning in May – subject to the approval of proposals filed with state regulators.
"The tax act reduced our corporate tax rate – and that's a benefit we are pleased to pass along to our customers," said Henning. "However, the impacts on our business and customers go far beyond the reduction in the corporate tax rate. While some of the changes reduce our federal tax liabilities over time, others could actually increase our tax obligations.
"We considered all of these scenarios as we determined the best ways to pass along the benefits of the tax act to our customers. And we continue to work through various regulatory proceedings in our efforts to ensure that our customers receive the benefits of this new law." – April 13, 2018, Duke Energy Press Release
Nationwide Insurance (Columbus, Ohio) -- $1,000 bonuses to 29,000 employees; increased 401(k) matching contributions for 33,000 employees:
“The combination of the new tax legislation, including a reduced corporate tax rate, and our associates’ ongoing commitment to our members, community and On Your Side promise are the reasons we’re making this investment that further enhances the already robust benefits we offer to attract and retain the best talent.” – Jan. 3 2018, Nationwide Insurance statement
Middlefield Banc Corp. (Middlefield, Ohio) – $1,000 bonuses for each employee:
Middlefield Banc Corp. (NASDAQ: MBCN) today announced that, as a result of the company’s strong 2017 financial results, favorable 2018 outlook, and the benefits of the Tax Cuts and Jobs Act, the company’s Board of Directors has approved several actions to return capital to Middlefield’s shareholders and employees.
Middlefield’s Board of Directors declared a quarterly cash dividend of $0.28 per common share payable on March 15, 2018, to shareholders of record on February 28, 2018. The 2018 first-quarter dividend payment represents a 3.7% increase over the 2017 first-quarter payment. In addition, the Board declared a special one-time cash dividend of $0.05 per common share that will be payable on March 15, 2018, to shareholders of record on February 28, 2018. The Board also approved a one-time bonus of $1,000 to each employee. – Feb. 14, 2018 Middlefield Banc Corp. press release
Jergens, Inc. (Cleveland) – Pay raises:
Thanks to the tax package, Jergens took what would normally be a cost of living increase for its workers, doubled it and built it in as a permanent part of wages, rather than making it a one-time bonus as some companies did. That means a worker making $25 an hour got a raise of about $2,000 a year. – Feb. 4, 2018 Cleveland.com article excerpt
Worldpay Inc. (Cincinnati, Ohio) – Up to $2,000 bonuses, increasing some hourly wages, increasing 401(k) match, increasing charitable contributions, investing in wellness and recognition programs:
“An Ohio-based payments-processing giant said Friday it's giving bonuses, upping pay and improving benefits while crediting the GOP tax cuts.
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Worldpay said U.S. hourly workers are getting bonuses of $1,000 to $2,000 each, and some hourly wages are being hiked. The company is increasing its 401(k) match and investments in wellness and recognition programs. Charles Drucker, the company's executive chairman and co-CEO, said the company also will increase charitable giving.” – March 2 2018, U.S. News and World Report article excerpt
Western & Southern Financial Group (Cincinnati, Ohio) -- $2,000 bonuses for full time employees; $1,000 for part time employees.
Walmart – 170 retail locations in Ohio -- Pay raises and bonuses. Ohio Walmart and Sam's Club employees are receiving tax reform bonuses of up to $1,000 for a combined state total of $18.1 million. Hourly wages raised to at least $11 per hour. The company also expanded maternity and parental leave and now provides $5,000 for adoption expenses:
Starting Thursday, Walmart associates in Ohio will be receiving cash bonuses the company promised them in January.
According to a release from Walmart, starting today, Ohio associates will receive a one-time $1,000 cash bonus for a total of $18.1 million in combined bonuses across the state.
The retailer will also begin increase its starting hourly wage for all associates to $11 an hour, and expand maternity and parental leave benefits.
The company also said it is creating a new benefit to assist employees with adoption expenses.
Walmart says they operate more than 170 retail units in the state of Ohio, and paid more than $157.5 million in taxes and collected more than $496.5 million in sales taxes in 2017. -- March 8, 2018 WCMH NBC4 report
Columbia Gas (Columbus, Ohio) – Customers will save $300 million because of the company’s lower tax rate.
“The Trump tax cuts will mean lower bills for Columbia Gas of Ohio customers.”
“The Public Utilities Commission of Ohio adopted a settlement agreement Wednesday that adjusts rates for customers to reflect the utility's lower tax rate under the federal Tax Cuts and Jobs Act. The lower rates are expected to save customers $300 million.”
“Columbia Gas will credit customers for higher rates it's collected since the tax cuts went into effect, with $22.5 million passed back to customers over 12 months. Residential customers will see a $1.06 monthly credit on their bill.”
“The utility also will reduce base distribution rates by $121 million, resulting in a $1.06 monthly savings for customers going forward.”
“The commission is pleased to approve a balanced agreement that credits Columbia’s customers with the effects of the (tax cuts),” PUCO Chairman Asim Haque said in a statement. “Rate impacts from important gas system work will be minimized thanks to the commission’s strong stance on utility tax reform.” -- Nov. 29, 2018 Columbus Business First article
Ohio Edison, (Akron, Ohio) - Passing 100% of savings by the Tax Cuts and Jobs Act onto customers.
“Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison – announced today that the Public Utilities Commission of Ohio (PUCO) approved a comprehensive settlement agreement that will return additional savings to customers related to federal income tax law changes and includes investments to modernize the electric distribution system with advanced automation equipment, real-time voltage controls and smart meters.
“FirstEnergy's Ohio customers will receive 100 percent of the tax savings created by the federal Tax Cut and Jobs Act, which includes tax savings already credited to customers since last year. As a result of the additional tax savings, a typical residential customer using 1,000 kilowatt hours of electricity could expect to see a reduction of over $4 in monthly bills.”
"We are pleased to resolve the tax reform issues and will pass along the tax savings to customers," said Samuel L. Belcher, senior vice president and president of FirstEnergy Utilities. "We look forward to modernizing our electric system with advanced equipment that will help reduce the number and duration of power outages. Smart meters also will allow our customers to make more informed decisions about their energy usage.” – July 17, 2019 First Energy Corp. press release
Cleveland Electric Illuminating Company (Cleveland, Ohio) - Passing 100% of savings by the Tax Cuts and Jobs Act onto customers.
“Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison – announced today that the Public Utilities Commission of Ohio (PUCO) approved a comprehensive settlement agreement that will return additional savings to customers related to federal income tax law changes and includes investments to modernize the electric distribution system with advanced automation equipment, real-time voltage controls and smart meters.
“FirstEnergy's Ohio customers will receive 100 percent of the tax savings created by the federal Tax Cut and Jobs Act, which includes tax savings already credited to customers since last year. As a result of the additional tax savings, a typical residential customer using 1,000 kilowatt hours of electricity could expect to see a reduction of over $4 in monthly bills.”
"We are pleased to resolve the tax reform issues and will pass along the tax savings to customers," said Samuel L. Belcher, senior vice president and president of FirstEnergy Utilities. "We look forward to modernizing our electric system with advanced equipment that will help reduce the number and duration of power outages. Smart meters also will allow our customers to make more informed decisions about their energy usage.” – July 17, 2019 First Energy Corp. press release
Toledo Edison (Lucas County, Ohio) - Passing 100% of savings by the Tax Cuts and Jobs Act onto customers.
“Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison – announced today that the Public Utilities Commission of Ohio (PUCO) approved a comprehensive settlement agreement that will return additional savings to customers related to federal income tax law changes and includes investments to modernize the electric distribution system with advanced automation equipment, real-time voltage controls and smart meters.
“FirstEnergy's Ohio customers will receive 100 percent of the tax savings created by the federal Tax Cut and Jobs Act, which includes tax savings already credited to customers since last year. As a result of the additional tax savings, a typical residential customer using 1,000 kilowatt hours of electricity could expect to see a reduction of over $4 in monthly bills.”
"We are pleased to resolve the tax reform issues and will pass along the tax savings to customers," said Samuel L. Belcher, senior vice president and president of FirstEnergy Utilities. "We look forward to modernizing our electric system with advanced equipment that will help reduce the number and duration of power outages. Smart meters also will allow our customers to make more informed decisions about their energy usage.” – July 17, 2019 First Energy Corp. press release
Lowe's -- 11,000 employees at 83 stores and two distribution facilities in Ohio. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/paternal leave; $5,000 of adoption assistance.
AT&T -- $1,000 bonuses to 5,069 Ohio-based 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 Akron, Beavercreek, Cincinnati, Columbus, Toledo, Westlake, Woodmere) -- $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.
Home Depot - 70 locations in Ohio, bonuses for all hourly employees, up to $1,000.
Comcast (Multiple locations in Ohio) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Chipotle Mexican Grill (Multiple locations in Ohio) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Ryder (Twenty-four locations in Ohio) -- Tax reform bonuses for employees.
Starbucks Coffee Company (Multiple locations in Ohio) – $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.
Everett J. Prescott Inc. (Ohio locations in Lima and West Carrollton) – $1,000 bonuses for employees with more than a year of service, $250 for employees with less than a year:
A Maine company says 300 employees will receive bonuses following changes to the federal tax code enacted at the end of 2017.
Everett J. Prescott Inc., a Gardiner-based waterworks materials company, says the bonuses will arrive Monday. The Kennebec Journal reports CEO Peter Prescott said Friday that many employees will receive a $1,000 bonus.
He says employees with less than a year of service will still receive a $250 bonus.
The family-owned company employs about 300 people across 26 locations in New England, New York, Ohio and Indiana. Prescott says the average tenure of an employee is 20 years. – March 5 2018, WABI article excerpt
U-Haul (Multiple locations in Ohio) – $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in Ohio) – 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
MainSource Financial Group (Multiple locations in Ohio) – 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
Taco John’s (Ohio locations in Bellville and Athens): All full-time and part-time crew members received a $200 after-tax bonus:
Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).
On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:
- Every restaurant crew member - full-time and part-time - received $200 (after taxes);
- General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
- The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release
Note: If you know of other Ohio 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
Cuomo Calls for Federal Income Tax Hikes to Bail Out NY

Looking to fellow Democrats who recently took control of Washington, Gov. Andrew Cuomo called upon President-Elect Joe Biden and Congress to bail out the state of New York during his 11th annual State of the State address this morning.
“If the federal government needs revenue, it should raise income taxes on the wealthy to finance the state’s resurgence from this national devastation. That is basic economic justice and economic prudence,” said Gov. Cuomo.
With Democrats holding the White House, Senate, and the House for the first time in over a decade, tax hikes are a major threat. Included in Biden’s tax plan is a substantial tax increase on high-income-earning Americans. In short, Gov. Cuomo’s dream of a state bail out by Washington doesn’t seem too far-fetched.
Groups on the left are pushing for New York State tax hikes still, even as Cuomo questions how much revenue they would raise. Some pointed to data from A Strong Economy for All, a coalition of labor unions and community groups across New York State, that suggest a California-style 13.3% income tax rate on higher earners would generate $22 billion.
It appears Gov. Cuomo wants to place the blame of his mistakes on the federal government – and wants Washington to fix his terrible handling of the pandemic, too.
Photo Credit: Pat Arnow
More from Americans for Tax Reform
Norquist Urges Biden to Oppose Digital Services Taxes

ATR President Grover Norquist was on CNBC’s Squawk Box to discuss the coming tax hikes when Biden is joined by a Democrat-controlled House and Senate, as well as the important fight against foreign Digital Services Taxes imposed by various different countries.
“And the other big question we have is where will he (Biden) be on fighting against the European effort to put a Digital Services Tax on America's rather large and successful companies like Google, Facebook, and Apple that Trump people had fought it very hard. Unclear that Biden with his new 'let's get along with Europeans' will continue to try to stop those taxes targeting American companies, not European companies.”
WATCH:
DSTs pose an unprecedented danger to tax competition, innovation, and economic growth. These new taxes represent a dramatic and irreversible shift for the international tax system. While they are imposed on business revenues, DSTs will ultimately end up harming consumers and workers as the costs are passed down. This will result in fewer jobs and lower wages for businesses, especially third party suppliers and sellers that rely on tech companies for their livelihoods.
How the Republican Tax Cuts Are Helping New Jersey

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.
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
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
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
New Jersey American Water (Swedesboro, New Jersey) – The utility will pass along tax cut savings to customers:
New Jersey American Water customers also recently had a rate decrease as a result of the Tax Cuts and Jobs Act. On April 1, 2018, most customer water rates were reduced by 5.9 percent (and 2.3 percent for former Shorelands Water Company customers). The water bill for the average residential customer using 6,000 gallons a month decreased approximately $3.36 per month ($1.00 per month for former Shorelands customers), and the average residential wastewater bill decreased between $1.49 and $5.81 per month, depending on service area.
The BPU is continuing their review of the overall impact of the new tax act, and further rate adjustments are anticipated in the coming months. – May 11, 2018, BusinessWire article excerpt
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
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
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
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A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
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An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
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Instituting paid parental leave for eligible Associates in the U.S.
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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 Republican Tax Cuts Are Helping New York

New York is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:
1,139,260 New York households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group in every New York 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.
6,266,750 New York 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.
260,660 New York 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, New York residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. New York utilities that have passed along tax savings include -- but are not limited to -- Consolidated Edison Company of New York, New York State Electric and Gas Corporation, Rochester Gas & Electric Company, National Fuel Gas Distribution Corporation, National Fuel Gas Distribution Corporation, Corning Natural Gas Corporation, St. Lawrence Gas Company, Inc., (see below.)
Thanks to the tax cuts, New York businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
Lupo’s Meat Plant (Endicott, New York) - Increased wages, ability to maintain healthcare coverage:
Company President Sam Lupo says recent tax cuts have allowed the business to raise wages and maintain healthcare.
He says maintaining a small business all comes down to building strong employees.
"Our long-term employees see that, they feel it, they've taken ownership, so then when we have new employees come in, they're taking those employees under their arm, and they're saying, 'hey, we're more than just a spiedie company, we're involved in our community," said Sam Lupo, Sam A. Lupo & Sons President.
The plant has been in businesses for more than 60 years and currently has 45 employees. - May 4, 2018, Spectrum News Article Excerpt
Fox Run Vineyards (Peter Yan, New York) -- The owner used savings from the Tax Cuts and Jobs act to pay the bills as well as buy new equipment, including two “falcon kites” that are meant to scare away birds.
"It's given us a little more money to pay bills and buy new equipment," said Scott Osborn, owner of Fox Run Vineyards in the Finger Lakes. He bought two "falcon kites" that are used to scare birds away in the vineyards, which has made a discernible difference. "We're not getting bird damage, and our vineyard manager figures we save a ton of grapes," he said. -- Nov. 8, 2019 Wine Spectator article
Paychex, Inc. (Rochester, New York) — Increased investments; acceleration of technology projects; increased investments in employees:
On December 21st, 2017, the tax cuts and jobs act or tax reform was enacted. And it's the most comprehensive tax reform legislation in more than two decades. Paychex, as a corporate tax payer is a significant beneficiary of tax reform. Efrain will discuss the financial impacts in more detail. However, I want to mention that as a result of the significant income tax reduction, we plan to utilize some of this opportunistic benefit to make various investments in our business. These investments include accelerating certain technology projects for the continued evolution of our customer experience, increasing our spend in marketing demand generation and sales and service strategy enhancements, as well as investment in our employees. — March 26, 2018 Paychex, Inc. Q3 2018 Earnings Conference Call Transcript
Wood Boat Brewery (Clayton, New York) - Hiring new employees, expanding production:
Similarly, small producers of beer and liquor seem to be well positioned to take advantage of tax savings given the large cut to the federal excise charge across the industry. Mix in a lower overall tax rate and the savings start to add up. Some are using the proceeds to hire and reinvest. For example, in Watertown, NY, the Wood Boat Brewery started posting ads for full-time help after the law passed.
Owner Michael J. Hazelwood told the Watertown Daily Times in December that he’d likely expand production and hire staff with savings realized from the reduced excise tax. Now, like the Klavers of SALUS, it appears he has. - April 18, 2018, Capital One blog post excerpt
Clayton Distillery (Clayton, New York) - facility upgrades:
Mr. Aubertine, who co-owns the Clayton Distillery, pays about $40,500 in excise taxes annually for the 3,000 gallons of spirits he produces at $13.50 per proof gallon. The tax reform, however, will reduce his expense to about $8,100 when it takes effect in 2018, which encouraged him to install upgrades to his facility at 40164 Route 12.
“We’re basically investing back into the business,” he said. “The tax plan — it also lets us write off some of the supplies a little bit differently.” - December 28, 2018, Watertown Daily Times article excerpt
Middle Ages Brewing (Syracuse, New York) – The Tax Cuts and Jobs Act allowed the company to reinvest in employees and equipment:
"For us it completely went back into the business or reinvested into employees or equipment,” said Isaac Rubenstein, the director of production at Middle Ages Brewing. “It was huge."
…
Newer breweries have been saving a few thousand dollars a year. Middle Ages has been saving about $20,000, so they're on edge about losing the tax relief.
"It would be devastating,” said Rubenstein. “Plans for next year might have to change, redo the budget a little bit. Some equipment that's on the list might get crossed off. It might be a part time employee. It would be really bad." – Dec. 18, 2019, Spectrum News article.
Shorewood Real Estate Group and Bridge Investment Group (Queens, New York) -- The companies are building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Shorewood Real Estate Group announced today that in partnership with Bridge Investment Group, the firms closed on an $88 million loan to finance the construction of 1 Archer Avenue Apartments in Jamaica, Queens. The construction facility was provided by East West Bank and a syndicate of lenders to construct the first development financed with Opportunity Zone Capital from Bridge and Shorewood.
Shorewood's Opportunity Zone Fund was created shortly after the 2017 tax reform created Opportunity Zones, tracts of land across the United States that meet certain federal criteria to be considered "distressed communities." Investment in Opportunity Zones is encouraged--and rewarded with significant tax benefits. The intent was to incentivize investment in areas in need of revitalization.
The Archer Avenue site is within a Qualified Opportunity Zone. The full site, located at 160-05 Archer Avenue, will be a 320,000 square foot mixed-use development that will include a 23-story building with ground floor retail, below grade parking, and 315 residential units. Under the Affordable Housing New York Program and in adherence to the Inclusionary Housing Program, 30 percent of the units will be reserved for affordable housing. Anticipated rents for those units will be well below market value. According to Shorewood CEO S. Lawrence Davis, the affordability component was a critical consideration to the overall project.
"We are committed to quality development that serves our investors, and also the communities in which we build," said Davis. "Jamaica, Queens has a rich history and unique character and our project is being developed to enhance the neighborhood."
According to Davis, Opportunity Zones were designed to bring needed capital into communities just like Jamaica. -- June 22, 2020 press release
Quadrant Biosciences (Syracuse, New York) – Because of the Tax Cuts and Jobs Act, the company is planning to create new jobs and invest in research activities"
“That money that will go directly into our research activities. And that translates into more jobs,” Uhlig said. “We’ll be hiring more neuroscientists, [and] we’ll be hiring more programmers to help facilitate their quality research.” – Feb. 27, 2018, PBS News article.
Kris-Tech Wire (Rome, New York) - Expanding operations, purchasing new equipment:
On the tour, Graham Brodock the President and CEO informed Rep. Tenney that Kris-Tech Wire has reinvested in the company as a result of the Tax Cuts and Jobs Act. Kris-Tech is building an addition and acquiring new equipment-thanks to the newly created ability to write off equipment charges. Kris-Tech has over 400 employees and a deep commitment to continuing to invest in the facility and employees here in Rome. - August 2, 2018, Rep. Claudia Tenney press release excerpt
J Car Development (Albany, New York) -- The company is redeveloping a building into a data center which is located on a Opportunity Zone created by the Tax Cuts and Jobs Act:
If Jason Benedict got nothing else in his introduction to Albany politics, he got a show.
The Chicago developer, who sat through the Albany City Commission's meeting Tuesday to find out if his J Car Development team would get a $3 million loan from the city's Job Enhancement Fund — one of the final pieces of the financial puzzle Benedict needed to move forward with his $13.5 million development plan for the old Gordon Hotel/Water Gas & Light Building at 207 Pine Ave. — had a front-row seat for the sometimes tragicomedy that is an Albany Commission meeting.
After being questioned about the structure of the building, getting a history lesson from Ward VI Commissioner Tommie Postell, who operated elevators at the old Gordon when he was a youngster, having to sit through a rehash of the process that led to the redevelopment plan, and then hearing a citizen, William Wright, insist that the loan approval be put off for 30 days and follow up with pontification on how "hotel jobs" are not good jobs because members of his family had worked at hotels, Benedict got his loan and said work will start on the 207 Pine building "in the next few days."
The developer said his company would begin work on the data center that is part of the development with plans to have it operating within 90 days. His team, he told commissioners, will manage the data center.
"It's a business that we're doing elsewhere right now, but we plan to consolidate it here," Benedict said. "We've had a pilot program going for the last four months, and it's worked really well."
Benedict said the second floor of the 207 Pine building will be used for the data center.
"There's a fair amount of infrastructure work that has to be done before we move in," he said. "We're going to put advanced cooling technology in there and get a new server in place. Once we take care of those things, we'll move pretty quickly."
Ward V Commissioner Bob Langstaff, noting that a significant amount of the funding plan for the development comes from EB-5 funding, asked Benedict if he had a contingency plan if that funding source fell through.
"We feel like we're in a high priority position for that funding," Benedict said of the government fund that is paid by employers who bring foreign workers into the country. "It's about creating local jobs, and not only will we be doing that, we'll be training students at Albany State University for technology jobs that will keep them here in the community."
The developer said, though, that if that particular funding source, estimated at $5 million of the project cost, doesn't come through, he has a contingency plan in place.
"We, essentially, have four funds that we're working with that are looking for projects like these," he said. "We're not concerned that funding will be an issue."
Benedict said he sees no reason why development of the project cannot move according to the schedule presented in the project plan. That schedule calls for the data center to begin operations in July, closing on the property in August, permitting approvals in October or November, a groundbreaking and construction commencement in December or January, and a grand opening in January 2021.
"Things look good; we're excited about this project," he said. "It looks like we're squarely in the sweet spot for opportunity zone investment. Our team is ready to begin the day-to-day work on the project; in fact, one of the lead team members will be moving to Albany real soon." -- April 10, 2019 Albany Herald article
BrightFarms (Greene County, New York) -- The company is building a greenhouse in an Opportunity Zone created by the Tax Cuts and Jobs Act:
BrightFarms Inc. is looking at sites in Greene County and surrounding areas to build a 280,000-square-foot greenhouse, enabling the company to supply supermarkets in the Albany region and Hudson Valley with its packaged lettuce, baby spinach and other produce.
The goal is to break ground by the end of this year and open in the second or third quarter of 2020.
The $21 million greenhouse would employ 55 people and mark the latest expansion for BrightFarms, a Westchester County firm with four greenhouses in four states.
The strategy is to build hydroponic greenhouses outside large metropolitan areas, where land is relatively affordable and nearby cities are easily reached by highways.
BrightFarms is able to get its produce to markets faster than larger growers who ship from southern California, Arizona and Mexico. The system extends the shelf life and provides a fresher alternative, said Paul Lightfoot, founder and CEO.
"We are essentially bringing local produce to supermarkets in a commercial scale," Lightfoot said. "People want to know where their food comes from."
BrightFarms products are sold at large chains such as Walmart, Kroger and Albertsons.
BrightFarms doesn't disclose revenues but last August it made the Inc. 5000 list of fastest-growing private companies, the only produce company on the list.
Two years ago the startup raised $30.1 million in Series C funding to expand.
BrightFarms talked to the Greene County Industrial Development Agency about building a greenhouse south of the village of Catskill between the Hudson River and Route 9W, according to the minutes of the last IDA meeting.
The location is in an Opportunity Zone, making investments there eligible for lucrative federal tax credits, but there are "significant issues" due to the topography, access and railway, according to the minutes.
An alternative site was suggested but wasn't disclosed in the minutes. Rene VanSchaack, executive director of the IDA, declined to comment because the discussions are "very preliminary at this point."
Lightfoot didn't specify the locations but said BrightFarms is exploring "multiple counties in the area and still open-minded to proposals."
He wants to find municipalities "that want us and hopefully provide some incentives, and where we feel we can operate in an economically favorable climate." -- March 8, 2019 Albany Business Review article
Empire Recycling (Utica, New York) - Employee quarterly bonuses increased by 50%:
Congresswoman Claudia Tenney (NY-22) toured Empire Recycling to see firsthand the important work Empire Recycling has done for our community over the past 100 years. On the tour, the Kowalsky brothers informed Rep. Tenney that as a direct result of the Tax Cuts and Jobs Act, Empire Recycling’s quarterly bonus given to their employees increased by 50%. - May 2, 2018, Rep. Tenney press release
RXR Realty (Brooklyn, New York)-- Launched a fund to invest money in Opportunity Zones:
“The fundraising efforts could help fund the company’s existing developments in designated census areas, like its $170M project in New Rochelle or redevelopment efforts in the Brooklyn Navy Yard.” -- October 24th, 2018, Opportunity Zones Database
Starwood Capital and AB Capstone (New York City, New York) -- The partnership is building a mixed-use property that will host a charter school and a 992-unit affordable housing development that is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Starwood Capital and AB Capstone have landed a $51 million construction loan for the development of 425 Westchester Avenue in the Bronx, Commercial Observer has learned.
Centennial Bank provided the debt in a deal arranged by Newmark Knight Frank’s Dustin Stolly, Jordan Roeschlaub, Nick Scribani, Chris Kramer and Drew Ahlers.
The 10-story, mixed-use property will be anchored by a charter school that’s operated by Zeta Charter Schools. The building sits directly opposite La Central, a 992-unit affordable housing development owned by Related Companies and Hudson Companies.
The rest of the building will house office and ground-floor retail space. Starwood and AB Capstone are currently negotiating with a non-profit organization interested in leasing the office space in its entirety.
The property is Starwood’s first Opportunity Zone investment, as reported by The Real Deal last year. -- April 2, 2020, Commercial Observer Article.
Lionsgate (New York City, New York) -- The movie production company is building a new movie studio in an Opportunity Zone created by the Tax Cuts and Jobs Act:
Real estate development firm National Resources of Connecticut and U.K.-based asset management firm Great Point Capital Management have secured financing for the first phase of the studio complex, estimated to cost $60 million.
Construction of the complex will consist of a $100 million investment across two phases. It's expected to create up to 420 new jobs in Yonkers, according to National Resources.
Plans for the development call for the construction of 70,000 square feet of studio space and 38,600 square feet of additional space next to the former Otis Elevator Co. building in Yonkers' iPark Hudson in Getty Square.
Lionsgate's studio will be located near the former Yonkers Herald Statesman building and the recently completed Avalon Yonkers apartment complex on Alexander Street.
IPark Hudson is owned by National Resources. CIT Bank has provided a $40 million construction loan to fund the first phase of the project.
Robert Halmi, the founder of Hallmark Channel and manager of Great Point Capital, said the loan closed on March 31. Financing for the first phase of the project includes $10 million in federal Opportunity Zone financing and an additional $10 million in equity financing.
"We are hoping to break ground in four weeks," Halmi said. "But if we have to delay another two weeks from there or another four weeks from there, we will add crew and work overtime to make sure the first phase still opens around the end of this year." -- April 13, 2020 The Journal News article
Golf Technology (Buffalo, New York) -- The company announced they will be building a golf entertainment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:
It's tee time on the riverfront in downtown Buffalo – on Noah's Ark.
The group planning a new entertainment complex on Ganson Street, not far from Buffalo RiverWorks, unveiled details Friday of the $30 million golf-focused project, which the developers – including OnCore Golf Technology CEO Keith Blakely and RiverWorks co-founder Doug Swift – hope will set a new standard for such facilities worldwide.
Designed to fit on a small urban space, officials said the new OnCore Buffalo facility is envisioned as a year-round sports and hospitality venue, aimed at golfers and others, of all ages and demographics.
The OnCore Buffalo project is the latest in a string of developments along Buffalo's waterfront, particularly along the once-polluted Buffalo River, where environmentalists and city officials have worked to both restore the natural habitat and make Ohio Street more attractive for investment.
Starting with RiverWorks on Ganson several years ago, followed by a pair of new apartment buildings on Ohio, and more recently the additional spinoff projects on neighboring streets, the area is rapidly becoming a destination for sports, recreation, entertainment and dining, alongside the growing residential presence.
“It's a natural next step for the trajectory that Buffalo is on, and for where the Buffalo River is going," Swift said. “These kinds of projects are going to keep coming. It's the wave of the future."
At a time of declining interest in golf nationally, the new venture is intended to lure new people to the sport, and is also geared to attract corporate meetings, private parties and other events. At $40 to rent a bay for one hour, for up to six people, it's also meant to be affordable.
It will feature a long driving range with 72 stacked hitting bays on a four-story structure, topped by a six-story hotel with at least 120 rooms, a sports bar and restaurant, and meeting space. The artificial turf range, with 11 bright-red target greens, will be enclosed by a giant wall of tensile fabric and polyester mesh netting across a lightweight steel frame to keep the balls inside, and to shield golfers from the elements. The building will be heated, but the range will not be completely covered.
The entire ship-shaped complex – a tribute to Buffalo's maritime history – will be supported on piers above a level of covered parking underneath, for 225 vehicles. Pedestrians in the parking area will be able to look up through the ceiling to see the balls coming onto the greens. Additional surface parking will also be available for another 125 spaces.
The project will encompass about 4 acres of a 7-acre brownfield parcel, leaving plenty of additional room for future development, including along the Buffalo River and a 550-foot concrete wharf.
The project is fully funded, and Blakely and Swift hope to start construction next year, with an opening in 2021 after 12 to 16 months of work. It will likely qualify for state brownfield tax credits, and is located in a qualified opportunity zone, but the team is not seeking other public funding. -- September 21, 2019 Buffalo News article
Dayton T. Brown Inc. (Bohemia, New York) -- $400 bonuses for each of the 210 employees:
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
Finger Lakes Distilling (Burdett, New York) -- Used new savings from the Tax Cuts and Jobs act to hire more employees.
"It's meant tens, if not hundreds of thousands of dollars to our business over the last couple of years," said Brian McKenzie, president of Finger Lakes Distilling, who makes various spirits and also has a winery license for his vermouth brand. McKenzie chose to put the extra cash into hiring people in sales and marketing. He added staff, and reports that his sales were up 25 percent this year. "All of a sudden we've invested in those jobs, and it's helped our business considerably," he said. -- November 8, 2019 Wine Spectator article
Environmental Construction Group, Inc. (Albion, New York) -- $500 bonuses for 50+ employees:
Environmental Construction Group, Inc. a small company from Albion, NY gave every one of their 50+ employees a $500.00 bonus. Employees were notified of this bonus the Friday before Christmas and bonuses where paid the Friday before New Years. ECG appreciates the work this administration has done to promote such a positive outlook on this nation, and will try just as hard to continue to help our employees. Robert Gibbs, Environmental Construction Group, Inc.
Brookfield Property Partners (Bronx, New York) -- The company made a $165 million purchase to create affordable housing:
“They plan to build about 1,300 residential units across seven buildings on the property, 30 percent of which would be affordable.” -- September 11th, 2018, The Real Deal
LiDestri Food and Drink (Rochester, New York) – Double-paycheck bonuses:
The Rochester based producer of food, beverages and spirits gave all of their 1,200 employees at each of their five U.S. facilities an extra full paycheck.
They were notified on Wednesday that their mid-month paycheck had been doubled, because of strong company performance and the recently approved federal tax legislation.
“When we learned that the recent tax cuts would provide the company with some unaccounted-for funds, we immediately thought it should be shared with our workforce,” said Co-President Stefani LiDestri. “It just so happened that it came together on Valentine’s Day, the perfect time to let our employees know how much they mean to us.”
She said that the recent federal tax cuts will provide some unaccounted for funds, and the company thought it should be shared with the workforce.
Locally, LiDestri has facilities in Fairport and at the Eastman Business Park. – Feb. 15, 2018 WXXI news article.
Suit-Kote Corporation (Cortland, New York) – Pay raises for 800 employees; increased 401(k) contributions:
Paul Walts is getting a raise this year, thanks to the GOP tax plan. So is Louis Morgan. So are about 800 other employees at Suit-Kote Corporation.
The Cortland paving company is doling out raises and retirement bonuses using money saved from the new Republican-led tax plan.
Walts, a dispatcher who's been with the company 14 years, has three kids in college. He plans to put money aside to help pay for their education.
Morgan, too, said he's going to save more and possibly take a vacation.
"You hear it's in the pipeline and you hope it's going to happen, but you don't know how much it's going to be," Morgan said regarding the raises. "I'm definitely looking forward to it."
Walts, Morgan and a few dozen other employees watched Thursday as President and CEO Frank Suits Jr. announced the wage hikes to media alongside U.S. Rep. Claudia Tenney.
The average raise, Suits said, will be about $1,400. The company also increased its 401K contributions by about $1 million. – Feb. 22, 2018 The Post-Standard article excerpt
Sun Community News and Printing (Elizabethtown, New York) – Raises for all employees averaging $1,000 each; restoration of 2% match on employee IRAs; software and equipment upgrades:
“Sun Community News and Printing a small rural, free weekly newspaper serving the Adirondack Region of New York State is proud to announce as a result of the recent tax cuts and the uptick in the economy we have announced raises for all employees averaging approximately $1,000 each and will now be in a position to resume our 2% match to employees IRA accounts.
The combination of these two announcements will total approximately $75,000 for our 50 employees.
We will also now be in a position to invest in some long overdue software and equipment upgrades to smooth out production flow and further support our customers and employees.
It feels good to get our economic engine running again and create a winning attitude for our small firm.” – Dan Alexander, President and Publisher, Sun Community News and Printing
Starwood Capital Group and AB Capstone (Bronx, New York) -- The firm is developing a mixed-use facility within a Bronx Opportunity Zone:
“... the 10-story development will be anchored by a pre-K through eighth grade school, run by Zeta Charter Schools. The building will include office space for a non-profit and ground-floor retail….
The facility will have modern finishes, state-of-the-art classrooms, a double-height gym, floor-to-ceiling windows, open plan offices and more than 11,000 square feet of outdoor space...
“The Bronx is New York City’s fastest growing borough and we see continued opportunity to help bring new investment in the services, schools, office space and retail that have long contributed to the Bronx being such a vibrant community,” says Anthony Balestrieri, SVP and leader of Starwood Capital Group’s Opportunity Zone investment strategy.” -- May 10th, 2019, Globe St.
Lok-N-Logs, Inc., I Wood Care, and Webb Properties (Sherburne, New York) – Employees working for a year or more received a double paycheck; those working less than a year also received a bonus.
Northco Products, Inc. (Albany, New York) – This small business was able to hire one new employee, give all employees bonuses ranging from $100 - $971 after taxes; the company is also investing in a new building:
The opportunity to do better for our employees and business was an exciting event. We took a leap of faith that congress would pass the historic tax reform. In doing so, we were able to hire one new employee, and give all of our employees bonuses including our intern, who is involved in a local high school’s program for students with autism. These bonuses varied from $100 to $971 (after tax based on the duration of their employment with us. On top of this, we decided to invest in a new building and name for the business. The building we chose is the former headquarters of our family business. Moving into this new building will provide our employees with more space and higher quality work environment and location. The name we chose also ties in with our roots as a successful and respected family business. The Historic Tax Reform presents us with the opportunity to rebuild a once-great family-focused business, Standard Copy. -- AJ Crandall, President, Northco Products, Inc.
Henry Schein, Inc. (Melville, New York) -- $1,000 bonuses:
Taking into account changes to the federal statutory tax rate under the new U.S. tax legislation and its effects on state taxes and other permanent items, the Company expects its effective tax rate in 2018 to be in the 24% range. In recognition of our team members, following the recent U.S. Tax Cuts & Jobs Act, Henry Schein plans to distribute up to a $1,000 one-time cash bonus to certain designated staff members in the U.S. with one full year of service as of January 1, 2018. – Feb. 20, 2018 Henry Schein, Inc. statement
JetBlue (New York, New York) – $1,000 bonuses for all 21,000 employees:
Today the JetBlue (NASDAQ: JBLU) Senior Leadership Team shared the following note regarding the airline’s plan to distribute $1,000 to all of its 21,000 crewmembers, excluding CEO and executive vice presidents, following recent tax reform legislation:
Dear Crewmembers,
You’ve likely seen the news about U.S. tax reform. We believe these tax changes will be positive for our company, and provide us the opportunity to do good things for our Crewmembers, Customers and shareholders.
When tax reform looked like a real possibility late last year, we formed a team to think through what it could mean for each of these important groups. Many ideas are on the table but we believe our Crewmembers should be the first to benefit. With that in mind, we are excited to announce we will be paying every Crewmember employed as of December 31, 2017, a $1,000 bonus by the end of February! – excerpt from Jan. 4, 2018 JetBlue letter to employees
Small Business Development Center at York College (Southeast Queens, New York) -- has given $30M in loans to opportunity zone businesses in Southeast Queens.
“Although most of the discussed EOZ development has been on real estate, there are some investors interested in opportunity zone businesses.
Harry Wells, Regional Director of the Small Business Development Center at York College/CUNY and Demond Wilkerson, Asset Management Consultant for SBDC highlighted the importance of leveraging the local institutions to build business capacity while planning for sustainability.
“Our SBDC center has done $30M in loans to businesses in Southeast Queens,” Wells said.” -- June 28th, 2019, NY State Senator James Sanders Jr. Page, ‘Economic Opportunity Zones Highlighted at Sanders' Community Clergy Breakfast’
BNB Bank (Bridgehampton, New York) – Base wage raised from $13 to $15; additional pay raises:
Separately, Bridgehampton-based BNB Bank said it was increasing its minimum wage from $13 to $15 in light of the lower corporate tax rate. The bank added that it was also increasing wages for employees in the tier above that. About 100 employees, or 20 percent of the bank's workforce, will see an increase, BNB said. – Jan. 30, 2018 Newsday article excerpt
Broadridge Financial Solutions (Lake Success, New York) – Base wage raised to $15 per hour; $1,750 bonuses to non-management employees, additional vacation days, expansion of paternal leave benefits:
Broadridge Financial Solutions on Wednesday said it was boosting workers’ pay, delivering bonuses and expanding employee benefits as a result of strong company growth and the recent federal tax law changes.
Lake Success-based Broadridge said its minimum hourly wage will increase to $15 per hour. It will also pay a $1,750 bonus to hourly, nonmanagement associates.
Broadridge added that it was enhancing employee benefits, including adding vacation days for employees who have been at the firm at least five years. It was also expanding paternal leave benefits.
Daly said about 1,000 employees on Long Island would earn the bonus. He said about 50 employees in the region would see a pay increase because of the higher minimum.
“The vast majority on Long Island already are over $15,” Daly said, adding that the company’s minimum “had been as low as $12 in some places.”
The bonuses will be paid around midyear while other benefits will be phased in throughout the year, the company said.
Broadridge has more than 10,000 employees in 16 countries, including about 1,800 in Lake Success and Edgewood. – Feb. 7 2018, Newsday article excerpt
Dime Community Bancshares, Inc. (New York, New York) -- $1,000 bonuses for non-executive employees.
Empire National Bank (Islandia, New York) – salary increases; 401(k) match increases; $1,000 bonuses for non-executive employees:
Empire National Bank is increasing salaries by 5 percent, upping its 401(k) match program and giving all nonexecutive employees $1,000 bonuses as a result of the benefits derived from the recent federal tax overhaul. – Jan. 30, 2018 Newsday article excerpt
Atlas Air Worldwide (Purchase, New York) -- $1,000 bonuses to 3,100 employees
“In appreciation of your significant efforts, the Company will be providing a special one-time bonus payment to all full-time flight and ground staff employees below the officer level. We are pleased to offer this bonus to our flight crew employees as the Union is in agreement. This bonus will be funded by a tax refund that the Company expects as a result of the newly enacted U.S. tax law.
The $1,000 bonus will be provided in early January and is subject to applicable federal, state and local withholding taxes.” – Atlas Air Worldwide CEO William J. Flynn in a letter to employees
National Fuel Gas Distribution Corporation (Williamsville, New York) -- The utility is passing along tax cut savings to customers:
On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting
Everett J. Prescott Inc. (New York locations in Buffalo, Round Lake, and Syracuse) – $1,000 bonuses for employees with more than a year of service, $250 for employees with less than a year:
A Maine company says 300 employees will receive bonuses following changes to the federal tax code enacted at the end of 2017.
Everett J. Prescott Inc., a Gardiner-based waterworks materials company, says the bonuses will arrive Monday. The Kennebec Journal reports CEO Peter Prescott said Friday that many employees will receive a $1,000 bonus.
He says employees with less than a year of service will still receive a $250 bonus.
The family-owned company employs about 300 people across 26 locations in New England, New York, Ohio and Indiana. Prescott says the average tenure of an employee is 20 years. – March 5 2018, WABI article excerpt
ES Bancshares, Inc. (Newburgh, New York) -- $500 bonuses to non-executive full-time employees; $250 bonuses to part-time employees; creation of at least ten new jobs; further business expansion:
ES Bancshares., Inc the parent company of Empire State Bank, announced December 21, 2017 that due to the signing into law the tax reform legislation which provides a reduction of corporate tax rates from 35% to 21% , it will be investing into its most valuable asset, its employees. Empire State Bank has provided a one-time bonus of $ 500.00 to its full time and $ 250.00 to its part time employees. Executive management was excluded.
'We are happy to share the benefit with our employees who continue to provide outstanding service to our customers, as well as our shareholders who will see this benefit fuel the continued growth and bottom line results,' said Philip Guarnieri, CEO. 'We will be adding at least 10 new jobs and expanding our footprint in the Staten Island and Brooklyn communities,' said Thomas Sperzel, President and COO. – Jan. 2 2018, ES Bancshares, Inc. press release
Flushing Financial Corporation (Uniondale, New York) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees:
Flushing Financial Corporation (the "Company") (NASDAQ:FFIC), the parent holding company for Flushing Bank (the "Bank"), announced that the Company's Board of Directors approved a plan to increase the dividend in 2018 by two cents per share per quarter and provide each full-time and part-time employee with a one-time bonus, of $1,000 and $500 respectively, as a result of the benefits derived from the recent tax reform. – Jan. 22, 2018 Flushing Financial Corporation press release
Financial Institutions, Inc. (Warsaw, New York) – $500 bonuses:
“Recent tax reform will reduce our federal income tax rate in 2018 and provide opportunities to strengthen relationships with our most valued partners our employees, our customers and the communities in which we operate. The first action taken was a one-time award of $500 to employees not covered by certain incentive programs. Approximately 70% of our employees will receive this award, and they will also be eligible to participate in a new profit-sharing program to be based on the Company’s 2018 performance.” – Jan. 29, 2018 Financial Institutions, Inc. filing
Corning Natural Gas Corporation (Corning, New York) -- The utility is passing along tax cut savings to customers:
On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting
JPMorgan Chase & Co. (New York, New York) -- Base wage raised for 22,000 employees, to a range of $15 to $18 per hour; 4,000 new jobs added; 400 new branches; increased charitable donations; increased small business lending:
JPMorgan Chase today announced a $20 billion, five-year comprehensive investment to help its employees, and support job and local economic growth in the United States. The firm has always believed that the highest and best use of its capital is to support employees and local communities and businesses by doing what a bank is supposed to do: lending and investing. This long-term investment, which both increases and accelerates the firm’s current growth, is made possible by the firm’s strong and sustained business performance, recent changes to the U.S. corporate tax system and a more constructive regulatory and business environment.
Through this new investment, the firm will develop hundreds of new branches in several new U.S. markets, increase wages and benefits for hourly U.S. employees, make increased small business and mortgage lending commitments, add 4,000 jobs throughout the country and increase philanthropic investment.
The investment brings together the best of the firm’s business and philanthropic efforts to drive inclusive economic growth and help create opportunity for more Americans.
The $20 billion investment will focus on the following key areas:
- Investing in employees with further increases to wages and benefits. Wages will increase 10 percent on average—ranging from between $15 and $18/hour—for 22,000 employees.
- Expanding the branch network into new U.S. markets, leading to increased small business lending and philanthropic investments, and further support for local low-and moderate-income communities.
- Increasing community-based philanthropic investments by 40 percent to $1.75 billion over five years.
- Increasing small business lending by $4 billion.
- Accelerating affordable housing lending by (a) increasing mortgage lending in low-and moderate-income communities and (b) accelerating commercial lending to build affordable housing. – Jan. 23, 2018 JPMorgan Chase & Co. press release
M&T Bank Corporation (Buffalo, New York) – Base wage raised to $14 to $16 per hour based on location, a $25 million investment; employees receive 40 hours of paid time annually for volunteer/charitable/employee resource group activities:
M&T Bank Corporation (NYSE: MTB) ("M&T") today announced a series of investments to perpetuate its legacy of support for its employees and the communities the bank serves. M&T is making these investments in anticipation of the improvement in after-tax income it expects to recognize as a result of federal tax reform.
M&T is committed to the following actions:
- The company will increase wages for hourly paid employees. Their rate of pay will begin at $14 to $16 per hour, based on geography. This increase will represent an investment in employees of $25 million, once fully implemented. This is part of the company's thoughtfully considered and ongoing commitment to provide sustainable career paths and professional growth opportunities for all of its employees.
- All employees will be granted 40 hours of paid time each year to participate in volunteer and/or employee resource group activities of their choice.
- Over the past 31 years, The M&T Charitable Foundation has consistently invested in a diverse range of civic, cultural, health and human services organizations that strengthen M&T communities. To sustain that commitment, M&T contributed $50 million to The M&T Charitable Foundation during 2017—the largest amount in the company's history. By comparison, a total of $178.7 million was contributed by M&T to The M&T Charitable Foundation over the past 10 years. – Jan. 17, 2018 M&T Bank Corporation press release
Marsh & McLennan Companies, Inc. (New York, New York) – Base wage raised to $16 per hour; $1,000 bonuses for employees earning less than $55,000:
Marsh & McLennan Cos., the world's largest insurance brokerage, said it will increase its minimum wage to $16 per hour after the U.S. cut corporate tax rates.
U.S. colleagues earning $55,000 or less will get one-time $1,000 payment
The wage hike will benefit about 780 employees, while about 5,000 employees will get the one-time bonus, according to a memo sent to employees
"The bulk of the tax savings will drop into earnings and improved free cash flow. However, we will make two adjustments for colleagues in the U.S. who are at the lower end of our pay scale," CEO Dan Glaser said Thursday on a conference call with analysts. -- Feb. 1, 2018 Bloomberg News article excerpt
Consolidated Edison Company of New York, Inc. (New York, New York) -- The utility is passing along tax cut savings to customers:
"On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting.
Maspeth Federal Savings (Maspeth, New York) – $1,000 bonuses for all full-time employees below the AVP officer level, $500 bonuses for all part-time employees; base wage raised to $15 per hour.
Mastercard Inc. (Purchase, New York) – increasing employer match for 401(k) plans to 10%:
“Mastercard Inc., Purchase, N.Y., is increasing the cap on the employer match in its 401(k) plan to 10% of an employee's salary, a spokesman confirmed.
Previously, the company match was 125% of employee contributions up to 6% of salary.
Michael Fraccaro, chief human resources officer, announced the change in a LinkedIn post last week. He cited recent U.S. tax reform as the impetus for the change.” - Feb. 5, 2018 Pensions and Investments article excerpt
Bank of New York Mellon Corp. (New York, New York) -- Base wage raised to $15 per hour; upgrades to dozens of technology programs.
New York State Electric & Gas Corporation (Liberty, New York) -- The utility is passing along tax cut savings to customers:
"On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting.
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St. Lawrence Gas Company, Inc. (Massena, New York) -- The utility is passing along tax cut savings to customers:
On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting
Rochester Gas & Electric Corporation (Rochester, New York) -- The utility is passing along tax cut savings to customers:
"On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting.
MetLife Inc. (New York, New York) – Base wage raised to $15 per hour; creation of a $10 million skills development fund; establishment of a minimum group life insurance benefit, enhanced 401(k) plan:
“As a result of tax reform, we are making a significant investment in our employees. We are enhancing pay and benefit programs and helping them develop skills that will make them more valuable members of our team,” said Chairman, President and CEO Steven A. Kandarian. “We are investing in their future and strengthening their long-term financial security with structural improvements that will endure. We are also channeling most of the benefits to employees at the lower end of the compensation spectrum.”
To help the company’s global workforce identify and acquire the skills needed to compete in the 21st century digital workplace, MetLife is establishing a Workforce of the Future Development Fund. The company will invest $10 million to accelerate a culture of learning and innovation.
For all eligible U.S. employees, MetLife’s enhanced programs include:
•Establishing a company minimum wage of $15 an hour, well above the federal minimum wage of $7.25 an hour.
•Establishing a minimum MetLife-provided group life insurance benefit of $75,000, regardless of the employee’s pay. Previously, the benefit was set at one times annual pay.
•Introducing a $300 minimum monthly credit for the cash-balance formula of the company’s defined benefit pension plan, also regardless of the employee’s pay. MetLife is one of a limited number of Fortune 50 companies that continues to provide its employees with both a defined benefit pension plan and a defined contribution plan to help them build secure retirements.
•Enhancing the 401(k) plan design by moving to auto-enrollment for employee contributions and immediate eligibility for, and vesting in, employer matching contributions. This is scheduled to take effect in 2019.
•Extending company-paid group legal services offered through MetLife’s Hyatt Legal Plans. Currently approximately one third of MetLife employees in the United States are enrolled in this voluntary benefit. With this change, legal services will be provided to MetLife’s 18,000 employees in the United States at the company’s expense.” – Feb. 12 2018, MetLife Inc. press release excerpt
NBT Bancorp Inc. (Norwich, New York) – Base wage raised to $11 to $15 per hour; minimum 5% salary increases for employees making less than $50,000; increased capital expenditures:
The Company will realize a reduction in tax expense beginning in 2018 due to Tax Reform decreasing the federal rate for corporations from 35% to 21%. As a result, the Company is raising the starting hourly pay rate of $11 to $15 per hour and employees earning $50,000 or less will receive a permanent minimum increase of 5%. This will positively impact over 61% of the Company’s workforce. Moreover, in 2018 the Company will be increasing both its investment in infrastructure to enhance customer-facing technology and contributions to nonprofit organizations in its footprint. – Jan. 23 2018, NBT Bancorp Inc. press release
American Express (New York, New York) -- $200 million additional investments for customer-facing growth initiatives; increased contributions to employee profit-sharing plans:
“Overall, we believe the Tax Act will be a positive development for both the U.S. economy and American Express. Given the momentum in the business and the anticipated benefit of a lower tax rate, we now expect to invest up to $200 million more in 2018 than we originally planned for customer-facing growth initiatives. We’ve also made an incremental contribution to our employee profit-sharing plans to support the long-term financial well-being of our employees. And, for shareholders, we expect to use the remaining anticipated benefits to build capital and support earnings growth in 2018. -- Jan. 18 2018, American Express press release
Pfizer Inc. (New York, New York) -- $100 million in tax reform bonuses for non-executive employees:
"The company also has allocated approximately $100 million for a special, one-time bonus to be paid to all non-executive Pfizer colleagues in first-quarter 2018." -- Jan. 29, 2018 Pfizer Inc. press release
Pioneer Credit Recovery (Arcade, New York) -- $1,000 bonuses for 800 employees.
PepsiCo, Inc. (Purchase, New York) -- $1,000 bonuses to full-time front-line U.S. employees:
For 2018, we will be aided by the financial benefits provided by the recent U.S. tax reform, which will allow us to make incremental investments to further fortify our business. For example, in 2018, we will provide a bonus of up to $1,000 to full-time front-line U.S.-based associates to reward and recognize their dedication and contribution to making our business better and stronger. And we will invest in training our global associates to arm them with the skills to succeed in tomorrow’s workplace. – Feb. 13, 2018 PepsiCo, Inc. Earnings Call Transcript
Verizon (New York, New York) -- Non-executive employees will receive 50 shares of restricted stock.
Evans Bancorp Inc. (Hamburg, New York) -- $1,000 bonuses to non-senior level employees; increased charitable donations:
Evans Bancorp, Inc. (the “Company”) (NYSE American: EVBN), a community financial services company serving Western New York since 1920, today announced a number of investments, continuing a pattern of support for its employees and the communities it has served and invested in for almost a century. These investments are being made in conjunction with expected improvements in after-tax income as a result of Federal tax reform in the Tax Cuts and Jobs Act.
Aligned with Evans Core Principles is Valuing Others, which leads the Company to commit to the following initiatives:
▪Evans will provide all of its non-senior level associates a $1,000 bonus in recognition of their superior efforts on behalf of the Company and as part of an ongoing focus on providing excellent career opportunities and top-tier employment.
▪The Company recently made a $300,000 contribution to its Foundation, the largest such contribution in its history. Disbursements from the Foundation are invested in not-for-profit entities to enhance the quality of life within Western New York.
▪Benefits provided by tax reform will also allow the Company to increase its returns to shareholders and provide additional investment in our community. Evans is currently researching initiatives that will be impactful and make a difference in the fabric of the community that is responsible for our success.
“With a nearly 100-year record of serving our communities, employees, customers and shareholders, these actions will expand our efforts even further,” stated David J. Nasca, President and CEO of Evans Bancorp. “As we will be directly benefiting from the tax reform, we believe that it is our obligation to share it with all of our stakeholders for the advancement of Western New York.”—Jan. 31 2018, New York Business Journal article excerpt
T.J. Maxx – 79 stores in New York – 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
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A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
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An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
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Instituting paid parental leave for eligible Associates in the U.S.
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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
Walmart – 100 locations in New York -- Base wage increased; pay raises; bonuses of up to $1,000. The company also expanded maternity and parental leave and now provides $5,000 for adoption expenses.
Cintas -- (multiple locations in New York) -- $1,000 bonuses for employees of at least a year; $500 for employees of less than a year.
AT&T -- $1,000 bonuses to 3,149 New York-based employees; Nationwide, the company has announced a $1 billion increase in capital expenditures thanks to tax reform:
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 Albany, Brooklyn, Buffalo, Elmhurst, Garden City, Huntington Station, Lake Grove, Manhasset, Nanuet, New York, Syracuse, Victor, White Plains, Yonkers) -- $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.
Home Depot - 100 locations in New York, bonuses for all hourly employees, up to $1,000.
Comcast (Multiple locations in New York) -- $1,000 bonuses for frontline and non-executive employees. Nationwide, the company will invest an additional $50 billion-plus in infrastructure in next five years.
Chipotle Mexican Grill (138 New York locations) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Lowe's -- 10,000 employees at 70 stores and one distribution facility in New York. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/paternal leave; $5,000 of adoption assistance.
Ryder (Twenty-two locations in New York) -- Tax reform bonuses for employees.
Starbucks Coffee Company (Multiple locations in New York) – $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 New York) – $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in New York) – 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
Taco John’s (New York locations in Jamaica and Lindenhurst): All full-time and part-time crew members received a $200 after-tax bonus:
Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).
On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:
- Every restaurant crew member - full-time and part-time - received $200 (after taxes);
- General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
- The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release
Loud & Clear Communications (New York, New York) -- Tax reform bonuses for employees.
Note: If you know of other New York 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 Michigan

Michigan is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:
Individual mandate tax relief: 147,340 Michigan households are no longer stuck paying the much-loathed individual mandate tax, thanks to the TCJA's elimination of this tax. 82% of Michigan 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.
Across the board tax cut: Every income group in every Michigan congressional district saw a tax cut.
Doubled child tax credit: 647,610 Michigan households are benefiting from the TCJA’s doubling of the child tax credit.
Standard deduction: At least 3,463,240 Michigan households are benefiting from the TCJA’s doubling of the standard deduction.
Lower utility bills: As a direct result of the TCJA’s corporate rate cut, Michiganders are paying lower utility bills. Lower electric, water, and gas bills help households each month, and also help small businesses operating on slim profit margins. Michigan examples of utilities passing on tax savings to customers include – but are not limited to:
- Michigan Gas Utilities Corp.
- Consumers Energy
- Upper Peninsula Power Company
- Alpena Power Co.
- DTE Energy
- ITC Holdings Corporation
- Northern States Power
- SEMCO Energy Gas Co.
- Upper Michigan Energy Resources Corp.
Joe Biden has vowed to raise the corporate tax rate to 28 percent, which would impose a direct increase in utility rates.
In their own words, learn how the tax cuts have helped Michigan businesses of all sizes: Thanks to the TCJA’s corporate tax rate cut – from 35 percent to 21 percent – and the TCJA’s 20 percent tax cut for small businesses, employers of all sizes are hiring new workers, expanding operations, upgrading equipment, and increasing pay and benefits:
The Mitten Brewing Company (Grand Rapids, Michigan) -- Because of the Tax Cuts and Jobs Act, the Michigan Brewery was able to produce new beer, perform new research, hire new employees, give employees pay raises and bonuses:
"It literally put money back into our pockets that we were spending before. We had been producing a bunch of new beers that we have been able to research and develop, and we’ve retained key employees, by giving them bonuses, raises, bringing in new employees," said Max Trierweiler, co-owner of The Mitten Brewing Company.” -- Oct. 7, 2019 WZZM13 Article
SpartanNash (Grand Rapids, Michigan) – Pay raises and bonuses:
A locally based grocery store chain plans to re-invest half of its savings from federal tax reform into employee compensation and one of its brands.
David Staples, the CEO of Byron Center-based SpartanNash, which is also a food distributor, said in a conference call to investors yesterday the company will issue bonuses, raise wages and invest in employee training in the first quarter of 2018.— Feb. 23 2018, Grand Rapids Business Journal article excerpts
WebHobby Shop, LLC (Pontiac, Michigan) -- Pay raises for employees:
“I am sure it seems like 'crumbs' to elitists but I was able to give them a $2 per hour raise because of the tax reform. It was great to do and my staff is very pleased.” – Bruce Zak, Principal, WEBHOBBYSHOP LLC
Penske Automotive Group (Bloomfield Hills, Michigan) – Increased 401(k) contributions:
Penske Automotive Group, Inc. (NYSE: PAG), an international transportation services company, announced today that it has enhanced the company's U.S. 401(k) savings plan by increasing company matching contributions from 1.5% to 2.5% of eligible contributions, representing an increase of 67%. The increase will provide a recurring, annual benefit to our employees.
"The recently enacted tax reform positively impacts our business, presenting us with even greater opportunities to pursue our strategic initiatives, invest in our employees and improve shareholder value," said Penske Automotive Group Chairman Roger S. Penske – Jan. 31, 2018 Penske Automotive Group press release
Blackrocks Brewery (Marquette, Michigan) – Reinvesting tax savings into equipment and personnel:
Blackrocks Brewery in Marquette, Mich. is already working on expanding its operations thanks to the new tax law, said David Manson, co-founder and ambassador of fermentology at the brewery. His brewery is reinvesting the money in equipment and personnel, and looking which he hopes will help get his beer on more store shelves. Blackrocks has an American Brown Ale that sells for $8.99 per six-pack and a porter that’s $9.99 for a six-pack.
“This will allow us to get over the hump of the high demand in our state, and we probably wouldn’t necessarily be able to do it without that tax break,” he said. “This will allow us to put up a fighting chance to hold our own.” – April 26, 2018 MarketWatch article excerpt
ITC Holdings Corporation (Novi, Michigan) – the utility is passing along tax cut savings to its customers:
ITC Holdings Corp. (ITC), the nation's largest independent electricity transmission company, today announced it is reducing its customer rates as a result of the lower federal corporate income tax rate the company received under the Tax Cuts & Jobs Act of 2017.
ITC's wholesale electricity customers throughout the Midcontinent Independent System Operator (MISO) region will see an 8-to-10 percent reduction in transmission rates, retroactive to January 1, 2018, beginning with bills for services provided in March. A similar reduction will be made to ITC's formula rate in the Southwest Power Pool region for future periods, effective back to January 1, 2018. – April 2, 2018 ITC Holdings Corporation article excerpt
Mill Steel Company (Grand Rapids, Michigan) – $1,000 bonuses for 400 full-time associates:
Mill Steel Co., one of the nation's largest distributors of flat-rolled carbon steel, is pleased to award a $1,000 bonus to all 400 of its full-time associates following the tax cut passed by Congress and signed by President Trump.
Mill Steel announced this morning that all full-time associates across its nine operations nationwide, no matter each individual's seniority, will receive a one-time bonus from the recent tax overhaul that reduces corporate tax rates. – Feb. 8 2018, Mill Steel Company press release excerpt
Gray Skies Distillery (Grand Rapids, Michigan) -- Expanding production and employment:
Gray Skies has been in business for around two and a half years and has recently been able to expand production because of one specific aspect of the GOP tax law. It's called the Craft Beverage Modernization and Tax Reform Act, which was an amendment to the big picture bill Trump signed into law in December.
There's a lot to the law, but here's why it matters to Gray Skies and other distilleries like it: excise taxes are much, much lower for them now. 80% lower to be exact.
"The instant a drop of alcohol is produced, tax is owed on that," said Steve Vander Pol, who co-founded Gray Skies and serves as the head distiller.
The law reduces excise taxes on producers from $13.50 per proof gallon for the first 100,000 gallons produced to $2.70 per proof gallon.
"We're talking thousands of dollars every quarter that we're saving," Vander Pol said, "and obviously for someone on this sized scale to write a check that's reduced by 80% is pivotal. It's been huge for us." - June 4, 2018, WZZM article excerpt
Upper Peninsula Power Company (Marquette, Michigan) – the utility is passing along tax cut savings to its customers:
The Tax Cuts and Jobs Act (TCJA) was passed into law at the end of 2017, effectively lowering corporate tax rates from 35 percent to 21 percent. Upper Peninsula Power Company (UPPCO) is requesting approval of a proposal that would pass along the savings attributable to the TCJA to its customers. UPPCO’s proposal was filed with the Michigan Public Service Commission (MPSC) on March 30th as part of the process that is required by the state for determining how the benefits of the TCJA are to be credited to the utility’s customers.
“Under our plan, a typical residential customer consuming 500 kilowatt hours per month will see a reduction of approximately $1.30 on their monthly bills,” said Brett French, Vice-President of Business Development and Communications. “This is in addition to approximately $7 in monthly savings currently being seen by a typical residential customer because of the steps we implemented in January. We anticipate our customers will begin to see the additional savings later this summer after the MPSC approves our plan.” – April 2, 2018 WLUC News article excerpt
Iron Fish Distillery (Thompsonville, Michigan) – Because of the Tax Cuts And Jobs Act, the owner was able to create new full time jobs and invest in the company:
“For us this has been a game changer. This tax incentive, this tax decrease really came right at a time when we needed to take some risks, and invest in the business and hire people and so it was, I think, as intended, worked here at Iron Fish,” said Anderson. – Dec. 17, 2019, 9&10 News article.
Detroit Opportunity Zone -- Creation of over 200 jobs and construction of a new hotel in an Opportunity Zone created by the Tax Cuts and Jobs Act:
It would also mark the first major new development revealed in the Corktown neighborhood, about two years after it was first reported that Ford Motor Co. was redeveloping the train station on 15th Street and building an autonomous vehicle and electric vehicle campus in the neighborhood.
A building on the site, most recently City Cab, that has been vacant for a couple of decades would be torn down to make way for the new project, subject to approval from the Historic District Commission.
Rutledge said the hotel is expected to employ between 200-225 full- and part-time employees.
Rutledge and Wertheimer declined to discuss financial specifics. But they said the project is fully financed and that Opportunity Zone status for the area made it easier to secure equity, which comes primarily from local sources, Wertheimer said. -- March 16, 2020 Crain’s Detroit Business article
Cedar Springs Brewing Company (Cedar Springs, Michigan) -- Used savings from the Tax Cuts and Jobs Act to hire new employees and purchase new equipment:
Across the nation, craft beer makers are urging Congress to pass the Craft Beverage Modernization and Tax Reform Act.
The current legislation gives small brewers a 50% reduction of their federal excise tax, but it expires at the end of 2019.
"It was relief for a lot of us," Cedar Springs Brewing Company's Dave Ringler said. "I can speak personally, that gave us a little cash flow ease. It was something we used to hire employees, buy new equipment. It definitely helped out."
The new act would make that tax cut permanent.
"We’re all little guys," Ringler added. "Almost all of us are entrepreneurs that are sole proprietors or small business people, so it really does help Main Street."
"Small breweries really are the lifeblood of small communities," Ringler added. "It's been a huge part of revitalization in communities not only here in Michigan but nationally." -- Oct. 10, 2019 Fox 17 Article
Stormcloud Brewing Company (Frankfort, Michigan) -- Savings from the Tax Cuts and Jobs Act allowed the company to buy new equipment and hire more employees:
“When the initial tax credit passed, it was an immediate savings for us and we were at a time when our business was continuing to grow, and so we took that opportunity to look at how we could invest in additional equipment, which brought on new employees as well,” said Stormcloud Co-Owner Rick Schmitt.
…
“We were able to add tank space, which allowed us to increase our distribution footprint, so today we’re in 35 counties in Michigan and likely we wouldn’t be there today if it weren’t for this tax credit,” said Schmitt.-- Oct. 7, 2019 9 & 10 News
Renaissance Global Logistics (Detroit, Michigan) – Tax reform bonuses:
“Tax reform helped Renaissance Global Logistics, headquartered in Detroit, give bonuses to my employees. Nancy Pelosi call these bonuses ‘crumbs’ and that’s disrespectful. I would ask Nancy Pelosi to come to Detroit to ask my employees what they thought of the bonuses. As an employer, it was rewarding to be able to give them out. Tax reform gives small businesses like mine the chance to reinvest into our workforce.” – John James, CEO of Renaissance Global Logistics, Feb. 22, 2018
Land & Co. (Wyoming, Michigan) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees; $250 bonuses for seasonal workers:
Land & Co., which operates 19 apartment communities in West Michigan, announced it will give its employees a special bonus of up to $1,000 in response the federal tax cut legislation signed recently by President Donald Trump.
"Land & Co. believes the Trump Tax Cut has generated a more optimistic vision for the future of business in West Michigan and the United States of America and wants their wonderful employees to be a part of and share in that vision," the company said in a statement attributed to its owners, Roger Lucas and Dan Hibma on Monday, Feb. 5.
Land & Co.'s 151 full-time employees will each get $1,000; its 17 part-time workers will get $500 and its nine seasonal workers will each get $250. – Feb. 5, 2018 Mlive.com article excerpt
U.S. Special Delivery (Iron Mountain, Michigan) – $1,000 bonuses:
With the recent tax reform, plenty of businesses got a big tax cut. That included Upper Peninsula–based U.S. Special Delivery, who got a little bit more spending money for the year, thanks to that tax cut.
“That was a major reason we were able to do this,” said U.S. Special Delivery President Terry Reed. “It provided the funds and the savings on taxes for us to be able to do something special, and we agreed it would be a great way to thank our employees for their dedication and hard work.” – Feb. 9, 2018 ABC News 10 article excerpt
Haworth Inc. (Holland, Michigan) – $1,000 bonuses for full-time employees, $500 bonuses for part-time employees; bonuses totaling $5 million:
Matt Haworth, chairman of the family-owned company, announced to staff on Wednesday, Jan. 24, that full time employees would receive one-time bonuses of $1,000, and part-timers would collect $500.
More than 4,500 employees who work for Haworth-branded companies around the globe will collect the rare bonus.
--
Matt Haworth says the company is able to make the $5 million investment because of several factors including strong 2017 revenues which will be announced next month and an improved business climate state and nationally. The latter he attributes to a rollback of regulations and taxes, which lower company's operational costs. – Jan. 25, 2018 Grand Rapid News article excerpts
SEMCO Energy Gas Co. (Port Huron, Michigan) - The utility is passing along tax cut savings to customers:
The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.
Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).
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"Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes," said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission Press Release excerpts
Michigan Gas Utilities Corp. (Monroe, Michigan) – The utility is passing along tax cut savings to customers:
The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.
Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).
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"Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes," said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission Press Release excerpts
Alpena Power Co. (Alpena, Michigan) – The utility is passing along tax cut savings to customers:
The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.
Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).
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"Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes," said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission Press Release excerpts
Upper Michigan Energy Resources Corp. (UMERC) (Iron Mountain, Michigan) - The utility is passing along tax cut savings to customers:
The Michigan Public Service Commission (MPSC) today approved settlement agreements with seven utilities to pass on to ratepayers their savings from the federal tax law rewrite, beginning in July. Three other utilities had no impact from the changes.
Filings were approved for Alpena Power Co., DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power, SEMCO Energy Gas Co., and Upper Michigan Energy Resources Corp. (UMERC).
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"Through swift action by the Commission, Michigan ratepayers will experience millions of dollars in refunds on their utility bills starting this summer due to changes in federal corporate income taxes," said Sally Talberg, chairman of the MPSC. “Utilities are benefiting from the tax cuts and their customers should, too.” – May 30, 2018 LARA Public Service Commission Press Release excerpts
Fishbeck, Thompson, Carr & Huber engineering (Grand Rapids, Michigan) -- $1,500 to all 400 full-time and part time employees:
A local architecture engineering firm has issued bonuses to all of its employees following tax reform.
Grand Rapids-based Fishbeck, Thompson, Carr & Huber, or FTCH, said yesterday it issued $1,500 bonuses to all 400 of its full- and part-time employees, effective Dec. 29.
Jim Susan, president of FTCH, said the company decided to give out the bonuses as a result of the firm's tax savings following passage of the federal tax bill on Dec. 22.
“We just decided it was a little windfall for the firm in general, and we decided we would share that with all our staff members,” he said. “Everyone got the same amount, regardless of position.
“It was in keeping with the spirit of the tax cut and trying to move a little more money back into the economy, so we decided for those few reasons we would do that.” – Jan. 16, 2018 Grand Rapids Business Journal article excerpt
Consumers Energy (Jackson, Michigan) -- The utility is passing along tax cut savings to customers:
Michigan officials approved refunds of $1,625,769,000 to Consumers Energy customers.
The Michigan Public Service Commission approved a refund of $1,174,181,000 for electricity customers and $451,588,000 for customers of Consumers Energy gas business.
The refunds are a result of the 2017 federal Tax Cuts and Jobs Act, which lowered corporate tax rates from 35 percent to 21 percent. -- Sept. 26, 2019 WLNS Article
DTE Energy (Detroit, Michigan) – The utility is passing along tax cut savings to customers:
DTE Energy issued the following statement regarding the impacts of H.R.1, the Tax and Jobs Act.
"The recent passage of the Federal Tax Cuts and Jobs Act will offer benefits to energy customers across the country -- including DTE's utility customers here in Michigan.
The reduction of the corporate tax rate will result in lower bills for DTE’s 2.2 million electric and 1.3 million gas customers.
In 2018, a savings of nearly $190 million will be passed along to customers.
As this tax reduction works through the regulatory process, our average electric and gas customers will see a reduction in their rates of about 3 percent. The reduction in rates due to the tax law change will be a significant infusion into the Michigan economy as our customers will enjoy this benefit for years to come." – Jan. 23, 2018 DTE Energy press release
Lakestone Bank & Trust (Lapeer, Michigan) -- Pay raise for hourly employees of $1 per hour; $1,000 bonuses for salaried employees:
Lakestone Bank & Trust announced Friday that employees will benefit from the recently announced tax reform law.
Bruce J. Cady, chairman and CEO of Lakestone Bank & Trust said, “We are very appreciative of all Lakestone Bank & Trust employees and certainly what they have accomplished over the years, particularly the last year; and we want to commemorate the passing of this historic, economy-stimulating tax reform law. This is a once in a lifetime opportunity and we know we want to reinvest much of the savings back into our bank and the first place we are going to put it is into the hands of our employees. Employees are our most important asset.
All hourly employees received a $1 per hour raise and all salaried employees will receive a $1,000 bonus. The bank's board of directors overwhelmingly supported this action, resulting in a significant investment into the bank's employees. -- Jan. 28, 2018 The County Press article excerpt
Traverse City State Bank (Traverse City, Michigan): $750 bonuses:
Sweeping federal legislation that provides lucrative tax cuts to businesses also is helping to fatten the wallets of Traverse City State Bank’s employees.
The bank announced in February that it was giving each of its 90 employees a one-time $750 bonus because of the federal tax overhaul that President Donald Trump signed in December and the bank’s strong performance last year.
“The tax reform has aided us in returning more funds to our staff in their paychecks and in turn, these bonuses will provide an additional boost to our local economy,” said bank CEO Connie Deneweth – March 2018, Traverse City Business News article excerpt
Waste Management Inc. (Multiple locations in Michigan) -- $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
Webco Industries Inc. (Grand Rapids, Michigan) – Up to $2,000 bonuses:
Webco Industries based in Sand Springs is the latest employer to give workers a bonus following the passage last year of the Trump Administration's tax plan.
Webco says each employee was given $1,000 if they've been there for a year or more. Employees who have been there for a significant amount of time, were given $2,000.
Webco says they had more than a million dollars total to distribute to their employees, many of whom are in Sand Springs.
"The tax cuts and jobs act reduced corp tax rates, so that produced a significant amount of savings this year for Webco as our corporate tax bill was reduced," said Mike Howard with Webco Industries.
These were one-time bonuses and impacted employees in Oklahoma, Pennsylvania, Texas, Illinois, and Michigan. -- March 7, 2018 News on 6 article excerpt
STERIS Corp. (Michigan location in Lake Orion- Steris IMS) -- $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 press release excerpt
AT&T -- $1,000 bonuses to 6,199 Michigan 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
T.J. Maxx – 41 store locations in Michigan – Bonuses, increased 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
Fifth Third Bancorp – 210 locations in Michigan; 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
Best Buy -- 41 stores in Michigan -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. Over 100,000 employees will receive bonuses:
Best Buy is the latest major corporation to hand out bonuses to its employees as a result of the recently passed corporate tax reform.
In a letter sent to employees Friday afternoon, CEO Hubert Joly said full-time employees will receive a one-time bonus of $1,000 and part-time employees $500.
All permanent employees who are not on an existing bonus plan will receive the additional funds. The bonuses are expected to show up in their paychecks this month.
In all, more than 100,000 of Best Buy’s 125,000 employees in the U.S., Mexico and Canada are slated to receive the extra payouts.
In addition, Best Buy is making a one-time contribution of $20 million to the Best Buy Foundation to help further expand its teen tech centers and Geek Squad Academies across the U.S.
“Our goal was simple: to say ‘thank you’ to more than 100,000 of our employees and help accelerate our work to bring much needed technology training to 1 million underserved teens a year,” said Jeff Shelman, a Best Buy spokesman. — Feb. 2 2018, Minneapolis Star Tribune
Home Depot --70 locations in Michigan -- Bonuses for all hourly employees, up to $1,000.
Dollar Tree, Inc. (Multiple locations in Michigan) -- $100 million investment in pay increases, enhanced benefits including maternity leave for qualifying employees, and employee training.
Lowe's -- 6,000+ employees at 47 stores and one distribution facility in Michigan. 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 (Twenty-two locations in Michigan) – Tax reform bonuses:
Ryder System is the latest company to give its employees a bonus as result of the new tax law.
The Miami-based fleet management company (NYSE: R) will give a one-time cash bonus to all non-incentive bonus-eligible employees of the company employed on Dec. 31, according to a Securities and Exchange Commission filing.
The bonuses, totaling about $23 million, stem from a huge tax benefit that Ryder will receive as a result of changes in the recently passed Tax Cuts and Jobs Act, which reduces federal corporate tax rates to 21 percent from 35 percent.
Ryder said it will get a one-time tax benefit of about $586 million, or $11.04 a share, for the quarter ended Dec. 31. It said the net benefit is due to the estimated impact of reduced future tax rates on the company’s deferred tax liabilities.
The Fortune 500 company had 34,500 employees at the end of 2016, and reported $1.8 billion in revenue and $11.3 billion in assets in its most recent quarter. -- Jan. 30, 2018 South Florida Business Journal article excerpt
CarMax (Kentwood, Michigan) – $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
Walmart - Michigan employees at 119 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.
Cintas (Multiple locations in Michigan) -- $1,000 bonuses for employees of at least a year $500 for employees of less than a year.
U-Haul (Multiple locations in Michigan) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Taco John’s (Stevensville): All full-time and part-time crew members received a $200 after-tax bonus:
Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).
On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:
- Every restaurant crew member - full-time and part-time - received $200 (after taxes);
- General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
- The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release
Fiat Chrysler (Auburn Hills, Michigan) -- $2,000 bonuses for 60,000 employees; $1 billion investment in U.S. plant in Warren, Michigan; 2,500 new jobs
“It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly,” Chief Executive Officer Sergio Marchionne said in a statement. – Jan. 11, 2018 Bloomberg News article excerpt
Starbucks Coffee Company (Multiple locations in Michigan) – $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 (600+ locations in Michigan) – 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
FedEx (Multiple locations in Michigan)– 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
Comcast (Multiple locations in Michigan) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
Wells Fargo – 15 locations in Michigan -- 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 Michigan 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 Idaho

Idaho is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:
140,670 Idaho households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group 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.
539,500 Idaho 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.
31,460 Idaho 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, Idaho residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, Idaho Power, Intermountain Gas, Suez Water Idaho Inc., and Avista (see below) all passed along tax reform savings to their customers.
Thanks to the tax cuts, Idaho businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
Telaya Winery (Boise, Idaho) -- The winery hired more employees and improved its marketing because of the Tax Cuts and Jobs Act.
At Boise’s Telaya Winery, grapes are sorted by hand onto a conveyor belt heading to the destemmer. Owner Earl Sullivan said the big bunches of fruit need to be pulled apart or they can explode in the machine.
“It’s a product of the freeze we just had a couple days ago,” he said, “We’re just having to work a little bit harder to make sure the fruit is as clean as we want it.”
Sullivan is also the chair of the Idaho Wine Commission Board. Today’s grapes are processed and barreled for aging, but won’t be bottled and taxed as wine for two years. That delay can make tax law changes difficult to prepare for.
“We spend several hundred thousand dollars per year on production for two years down the road, so the most likely impact in the short term would be a reduction in production,” Sullivan said. He also noted the winery has beefed up its hiring and marketing in the last two years while the tax rates have been lower. -- Oct. 22, 2019 Boise State Public Radio
Melaleuca (Idaho Falls, Idaho) – All 2,000 employees received a $100 bonus for each year they have worked at the company:
“We’re going to be able to have quite a few substantial dollars after taxes,”[CEO Frank] VanderSloot said. “I suspect we’re one of the largest taxpayers in the state, so we’re going to have some more dollars to spread around. That money should go to the people who built the company.” – Dec. 21, 2017 Associated Press article excerpt
Colling Pest Solutions (Idaho Falls) -- Tax reform bonuses for employees:
Representatives from an Idaho Falls-based pest control and lawn care company are traveling to Washington, D.C., this week to meet with President Donald Trump after the company gave its employees bonuses after Congress enacted tax cuts.
Colling Pest Solutions is sending six employees, including its owner, to the “American Workers for Tax Reform” event scheduled for Thursday afternoon at the White House.
The event recognizes small businesses throughout the country that have used tax cuts to benefit employees, whether through salary hikes or additional benefits. The company is paying for the employee’s travel to the event.
Over the past year, employees at Colling Pest Solutions have seen an 8 percent quarterly bonus due to anticipated benefits from recent tax cut legislation. Eligible employees also can receive child care assistance, where the company will pay 50 percent of costs for parents at a local child care center.
Tim Colling, owner of Colling Pest Solutions, believes it is his duty as an employer to pay added income from the business forward to his employees in order to maintain a competitive workforce. And he proposes other small businesses follow his company’s lead. -- April 9, 2018 Post-Register article excerpt
Ball Ventures (Idaho Falls, Idaho) - $100 bonuses for every year of employment.
DePatco, Inc. (St. Anthony, Idaho) - Tax reform bonuses for employees.
Mother Earth Brewing Company (Nampa, Idaho) -- The Tax Cuts and Jobs Act allowed the brewery to almost double their production, buy new equipment, and hire new employees:
Even the largest Idaho craft brewery has a fraction of that productivity. Mother Earth's Idaho brewery (the company has a second location in California) produced 10,000 barrels in 2018, the first year of the tax cut. This year, the brewery expects to produce 18,000 barrels, according to owner Daniel Love.
….
Mother Earth hired two new employees and bought two Unitanks, stainless steel fermenters, with the tax savings. -- Oct. 19, 2019 Idaho Press Article
Wigle Distillery (Pittsburgh, Pennsylvania) -- The distillery was able to save houndreds of thousands of dollars because of the Tax Cuts and Jobs Act, and was also able to hire three new distillers:
The Craft Beverage Modernization and Tax Reform Act reduced the excise tax rate on distilled spirits from $13.50 to $2.70 for the first 100,000 proof gallons per year, with smaller cuts to taxes on beer and wine.
“The tax relief, it’s well into the six figures for us,” said Meredith Meyer Grelli, co-owner at Wigle Distillery and Threadbare Cider & Mead in Pittsburgh. “Every dollar goes back into the business. And I think every small-business owner in the world can relate to that.”
Pittsburgh’s Wigle Whiskey Distillery produces a variety of small-batch whiskeys at its Strip District distillery. The 2017 tax relief allowed the business to immediately hire three distillers, Grelli said.
“It takes a year to train a new distiller, for them to be fully independent, safely operating a still,” she said. “So for every new distiller we bring on, we’re investing a year into them. If this tax relief went away and our taxes did go up 400%, we couldn’t grow our labor force in the same way. And we’d have to be much more careful about how we hired, because it is such a risk.” -- February 1, 2020 Pittsburgh Tribune-Review article
Idaho Power (Boise, Idaho) – The utility requested to pass along tax reform savings to customers:
Idaho Power has filed a settlement agreement with the Idaho Public Utilities Commission (IPUC) that, if approved, will result in reduced rates for customers within the company’s Idaho service area in 2018 stemming from recent federal and Idaho state tax rate changes.
According to an agreement between Idaho Power, IPUC Staff and the Industrial Customers of Idaho Power, customers will see a total benefit associated with reduced tax expense of $33.9 million, provided through: 1) a base rate reduction of approximately $18.7 million, 2) an additional $7.8 million decrease that will be provided through the 2018 Power Cost Adjustment mechanism, and 3) a non-cash annual benefit of $7.4 million in the form of an offset to other deferred costs.
If the proposal is approved by the IPUC as filed, the typical Idaho residential customer using 950 kilowatt-hours (kWh) of energy per month will see a monthly bill decrease of $2.15, beginning June 1. – April 13, 2018, Idaho Power Press Release
Intermountain Gas (Idaho Falls, Idaho) - The utility will pass along tax cut savings to customers:
State regulators have approved a rate decrease for customers of Intermountain Gas Company, to reflect the benefits of federal and state tax cuts.
The decision returns approximately $5.1 million to customers.
That is a 2.62-percent decrease for residential customers. It took effect June 1. - June 22, 2018 East Idaho News Excerpt
Suez Water Idaho Inc. (Boise, Idaho) - The utility will pass along tax cut savings to customers:
“A main feature of the tax law that took effect Jan. 1 was to reduce the federal corporate tax rate from 35 percent to 21 percent,” noted one such release, from the Idaho Public Utilities Commission. “Soon after the federal law took effect, Idaho Governor C.L. ‘Butch’ Otter signed into law House Bill 463, reducing the state’s corporate tax rate from 7.4 percent to 6.925 percent. Since a utility’s tax expenses are a factor in determining customer rates, the Commission directed all regulated utilities in the state with more than 200 customers to report the financial benefits of the law and how it planned to pass those benefits along to customers.”
Utility rate reductions are as follows:
Avista – 5.3 percent for electricity and 6.1 percent for natural gas
Idaho Power – 7.06 percent
Intermountain Gas – 2.62 percent
Rocky Mountain Power – 1 percent
Suez Water Idaho Inc. – 5.6 percent - June 19, 2018 Idaho Business Review Excerpt
AT&T -- $1,000 bonuses for 937 Idaho 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
Avista – The utility will pass federal tax reform savings to customers:
Avista customers could collectively see a $50 million to $60 million annual benefit from federal tax reform, utility officials said Wednesday.
The savings on individual customers’ bills, however, won’t be known until later this year.
Corporate tax rates for the Spokane-based utility dropped from 35 percent to 21 percent effective Jan. 1. Savings from the lower taxes will get passed on to Avista’s utility customers in Washington, Idaho and Oregon, said Mark Thies, senior vice president and chief financial officer.
--
The anticipated $50 million to $60 million in annual savings is the result of the lower federal tax rate and changes to Avista's deferred tax liability related to depreciation costs. As the result of the depreciation changes, about $442 million will be returned to Avista customers over 35 years, Thies said. – Feb. 21 2018, The Spokesman Review article excerpt
Walmart – Idaho employees at 26 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 -- 11 locations in Idaho: Idaho Falls, Meridian, Chubbock, Twin Falls, Coeur d'Alene, Eagle, Lewiston, Nampa, Ponderay, and two in Boise -- Bonuses for all hourly employees, up to $1,000.
Lowe's --1,000+ employees at eight store locations in Idaho: Idaho Falls, Boise, Coeur d'Alene, Twin Falls, Nampa, Pocatello, and two in Meridian -- 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 (Boise, Idaho) – Tax reform bonuses for employees.
Best Buy -- Six locations in Idaho: Nampa, Idaho Falls, Twin Falls, Coeur d'Alene, and two in Boise -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.
Cintas (Locations in Twin Falls and Nampa) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Taco John’s (Grangeville, Lewiston, Meridian, Mountain Home, Twin Falls): All full-time and part-time crew members received a $200 after-tax bonus:
Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).
On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:
- Every restaurant crew member - full-time and part-time - received $200 (after taxes);
- General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
- The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”
“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”
The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release
Waste Management Inc. (Multiple locations in Idaho) -- $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
Chipotle Mexican Grill (Chubbock, Nampa, Meridian, Twin Falls, Coeur d'Alene, and three in Boise) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.
Comcast (Multiple locations in Idaho) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.
Starbucks Coffee Company (67 locations in Idaho) – $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 – (Seven locations in Idaho: Boise, Coeur d'Alene, Idaho Falls, Lewiston, Nampa, Pocatello, Twin Falls) – 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 Idaho) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Dollar Tree, Inc. (Blackfoot, Boise, Burley, Caldwell, Chubbock, Coeur d'Alene, Eagle, Emmett, Idaho Falls, Jerome, Kuna, Lewiston, Meridian, Moscow, Mountain Home, Nampa, Oldtown, Payette, Pocatello, Ponderay, Post Falls, Rathdrum, Rexburg, Twin Falls) -- Increased base wages, enhanced benefits including maternity leave for qualifying employees and employee training, totaling $100 million nationwide.
Bank of America (Post Falls and Coeur d'Alene) -- $1,000 bonuses.
FedEx (Multiple locations in Idaho) – 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
Gardner Company (Boise, Idaho) - Tax reform bonuses for employees.
GetFoundFirst.com (Idaho) - Tax reform bonuses for employees.
EastIdahoNews.com (Idaho Falls, Idaho) - Tax reform bonuses for employees.
Elite Roofing Systems (Idaho Falls, Idaho) - Tax reform bonuses for employees.
InUnison Inc. (Idaho Falls, Idaho) - Tax reform bonuses for employees.
Elite Clinical Trials, Inc. (Blackfoot, Idaho) - Tax reform bonuses for employees.
Willow Creek Woodworks (Idaho Falls, Idaho) - Tax reform bonuses for employees.
Eagle Ridge Ranch (Island Park, Idaho) - Tax reform bonuses for employees.
McDonald’s (60+ locations in Idaho) – 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 (76 locations in Idaho) - 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 Idaho 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
Stimulus Payment Woes Prove the IRS Should Not Be Given More Power

The IRS is unsurprisingly struggling to distribute stimulus checks to taxpayers. Some Americans will likely not receive their payments until they file months from now, while millions of payments have been sent to accounts that have been closed or are no longer active.
This news is more proof that the IRS should not be given more power, as some on the left are proposing.
It is expected that President Biden and a Democrat Congress will push to expand the power of the IRS. Biden Council of Economic Advisers member Jared Bernstein has said the incoming administration will seek “significant increases in IRS enforcement and auditing.” Several dozen House Democrats have already proposed increasing funding for the IRS including providing $5.2 for “enforcement activities.”
Radical Democrats like Senator Elizabeth Warren (D-Mass.) and Representative Alexandria Ocasio-Cortez (D-NY) even want to have the IRS take over the tax preparation and filing process. This would replace the existing system of voluntary compliance, where Americans are responsible for filling out their own tax returns, with a system where the government assesses and files taxes for Americans.
Naturally, this would create a strong conflict of interest. Under a system of government-run tax preparation, the IRS would tell you how much you owe and give you the opportunity to contest. This would give the government an incentive to overcharge or withhold information from taxpayers.
At the very least, it would empower the IRS to collect even more personal information as noted in a recent report by the Progressive Policy Institute. As the report notes, the IRS does not have the information it needs to prepare tax returns for American families. This could deprive low-income Americans from important tax credits like the child tax credit and earned income tax credit (EITC).
In fact, in order to properly file for Americans, the IRS would have to have a “deep knowledge” of the personal lives of a family, which would result in a significant intrusion into the personal lives of American citizens.
Not only would giving the government this new power be unfeasible, it is also deeply unpopular. According to data by the Computer & Communications Industry Association, 60 percent of taxpayers oppose government tax preparation including 45 percent that “strongly oppose.” Just 8 percent of taxpayers strongly support government tax preparation.
Time and time again, the federal government and the IRS have proven they should have less, not more responsibility. The problems Americans are having receiving their stimulus payments is the latest example. Given this fact, efforts to expand the size and scope of the IRS and have the agency take over tax preparation should be rejected.
Photo Credit: frankieleon
ATR Applauds DOL Final Rule Clarifying Independent Contractor Status

The U.S. Department of Labor has released a final rule clarifying the difference between an independent contractor and a traditional employee under the Fair Standards Labor Act (FSLA). After implementation, this rule will protect freelancers by providing much-needed clarity and flexibility for American workers and businesses alike.
“This rule brings long-needed clarity for American workers and employers,” said U.S. Secretary of Labor Eugene Scalia. “Sharpening the test to determine who is an independent contractor under the Fair Labor Standards Act makes it easier to identify employees covered by the Act, while recognizing and respecting the entrepreneurial spirit of workers who choose to pursue the freedom associated with being an independent contractor.”
The rule includes several criteria designed to clarify whether or not a worker has independent contractor status. First, the rule contains an “economic reality” test to determine whether an individual works for himself or herself (as an independent contractor) or an employer (as an employee).
Next, the rule identifies two “core factors” that help determine an individual’s status as an independent contractor or employee. The first is the nature and degree of control that the individual has over the work itself, such as the ability to set a schedule, choose assignments, or work with little or no supervision. The second is the opportunity for profit or loss based on the individual’s investment or initiative.
In situations where the two core factors do not point to the same worker classification, the rule contains three additional guidelines to help determine an individual’s status, which are:
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The amount of skill required to do the work
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The depth of working relationship between the individual and potential employer
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Whether or not the work is part of an “integrated unit of production,” i.e. if an individual works in a situation roughly equivalent to a production line.
By clarifying the tests that determine whether or not an individual is an independent contractor or employee, this rule will simplify compliance for American businesses, reduce worker misclassification, and increase flexibility for American workers. ATR supports this rule.
Photo Credit: The White House
How the Republican Tax Cuts Are Helping Hawaii

Hawaii is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:
101,880 Hawaii households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group 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.
480,910 Hawaii 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.
10,890 Hawaii 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, Hawaii residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, Hawaiian Electric, Maui Electric, and Hawai’i Electric Light (see below) all passed their tax savings on to their customers.
Thanks to the tax cuts, Hawaii businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
Royal Hawaiian Heritage Jewelry (Honolulu, Hawaii) – The company will open additional retail locations:
Royal Hawaiian Heritage Jewelry has been in business for about 40 years.
And owner Jackie Breeden is hoping a sweeping tax overhaul approved by Congress and headed to the president's desk will help her expand operations beyond her stores at Pearlridge Center and on Bishop Street, and a single neighbor island outlet in Kona.
"I'm from Kauai so I would like to open up a shop back on the island of Kauai and on the west side of Honolulu as well, and be back in Maui. Before we were on all the islands," she said. – Dec. 21, 2017 Hawaii News Now article excerpt
Hawaiian Electric, Maui Electric, Hawai’i Electric Light (Honolulu, Hawaii) – The utility will pass along tax savings to customers:
The 460,000 customers of the Hawaiian Electric Companies could see lower electric bills as a result of the federal corporate income tax cut. Changes to federal tax law will lower corporate rates from 35 percent to 21 percent starting this year. That is expected to result in a lower tax bill for Hawaiian Electric, Maui Electric and Hawaiʽi Electric Light. State and federal taxes are included in the base electric rate and with a lower federal tax, the tax rate imbedded in the bill will be reduced. “We’re in the process of analyzing the impact of the tax overhaul but it’s pretty clear at this point that this will benefit most customers,” said Tayne Sekimura, senior vice president and chief financial officer of the Hawaiian Electric Companies. “We will work with our regulators and the Consumer Advocate to determine the exact amount of the tax reduction and the best way to pass on the savings.” Any change in the base rate is subject to the approval of the Public Utilities Commission, which will also determine the timing of any change in rates. – Jan. 10, 2018 Hawaiian Electric Press Release
Apple (Three Apple store locations in Hololulu: Ala Moana, Kahala, Royal Hawaiian) - $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.
American Savings Bank (Honolulu, Hawaii) - $1,000 bonuses to 1,150 employees; base wage raised from $12.21 to $15.25
Bank of Hawaii (Honolulu, Hawaii) – $1,000 bonuses to 2,074 employees; base wage raise from $12 to $15:
“Our employees are, by far, our greatest asset. It’s our pleasure to reward our team with this holiday opportunity,” said bank Chairman, President and CEO Peter Ho. “We’ve recently been thinking about increasing our minimum wage level throughout the organization to the living wage level. The adjustments to the corporate tax rate provided further momentum to execute on the plan.” – Dec. 22, 2017 Bank of Hawaii press release
Central Pacific Bank (Honolulu, Hawaii) – All 850 employees received $1,000 bonuses; base wage raised from $12 to $15.25:
“We are delighted to have this opportunity with the lowering of the corporate tax rate to take care of our hard-working employees, who are our most important asset, and give them an extra special holiday this year.” -- Central Pacific President and CEO Catherine Ngo
First Hawaiian Bank (Honolulu, Hawaii) -$1,500 bonuses to 2,264 employees; base wage increase to $15.
Hawaii National Bank (Honolulu, Hawaii) -- $1,000 bonuses; base wage raised to $15 per hour.
Territorial Savings Bank (Honolulu, Hawaii) -- $1,000 bonuses to 247 employees; base wage raised from $11.25 to $15.00 per hour.
AT&T -- $1,000 bonuses to 394 Hawaii employees; Nationwide, $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
Walmart – Hawaii employees at 10 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 -- Seven locations in Hawaii - Bonuses for all hourly employees, up to $1,000.
Lowe's -- 800+ employees at four store locations in Hawaii. 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 (Four locations in Hawaii) – Tax reform bonuses to employees.
Best Buy -- Locations in Aiea and Honolulu; $1,000 bonuses for full-time employees; $500 bonuses for part-time employees.
Cintas (Honolulu, Hawaii) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Starbucks Coffee Company (99 locations in Hawaii) – $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 – (Multiple locations in Hawaii) – 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 Hawaii) – $1,200 bonuses for full-time employees, $500 for part-time employees.
FedEx (Multiple locations in Hawaii) – 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
McDonald’s (60+ locations in Hawaii) – 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
Note: If you know of other Hawaii examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list