PLASTICS Economic Analysis: 100% Expensing Helps Offset Tariff Pressures on Manufacturing Investment

Washington, D.C. — The Plastics Industry Association (PLASTICS) Chief Economist, Dr. Perc Pineda, today released a new economic analysis examining how the permanent restoration of 100% bonus depreciation under the One Big Beautiful Bill Act is helping manufacturers continue investing despite rising equipment costs driven by tariffs.

Dr. Pineda writes, “Higher tariffs on steel, components, and finished machinery have increased costs and created uncertainty for manufacturers. One important mitigating factor: the permanent restoration of 100% bonus depreciation under the 2025 One Big Beautiful Bill Act. This tax provision significantly lowers the after-tax cost of new equipment and gives businesses a strong incentive to invest despite higher upfront price.”

Click here to read the full analysis on the PLASTICS blog.


About the Plastics Industry Association

The Plastics Industry Association (PLASTICS) supports the entire plastics supply chain, including Equipment Suppliers, Material Suppliers, Processors, and Recyclers, representing over one million workers in our $551 billion U.S. industry. PLASTICS advances the priorities of our members who are dedicated to investing in technologies that improve capabilities and advances in recycling and sustainability and providing essential products that allow for the protection and safety of our lives. Since 1937, PLASTICS has been working to make its members, and the eighth largest U.S. manufacturing industry, more globally competitive while supporting circularity through educational initiatives, industry-leading insights and events, convening opportunities and policy advocacy, including the largest plastics trade show in the Americas, NPE: The Plastics Show.