CREATE JOBS Act

**1. What Happened and Current Status:** On June 12, 2025, Senator Ted Cruz (R-TX) introduced S.2056, the CREATE JOBS Act, which would permanently reinstatement 100% bonus depreciation for qualified property placed in service after September 27, 2017. The bill was read twice and referred to the Senate Committee on Finance, where it remains as of the current date. An identical companion bill, HR3967, was introduced in the House and referred to Ways and Means. The bill is early-stage with multiple legislative steps required before potential enactment. **2. The Money Trail — Authorization vs. Appropriation:** This is a tax expenditure bill, not an appropriation. It modifies the Internal Revenue Code — specifically IRC Section 168(k)(6) — to set the applicable percentage for bonus depreciation at 100% permanently. There is no direct federal spending. The mechanism reduces corporate tax liability dollar-for-dollar in the year qualifying assets are placed in service. For a company in the 21% corporate tax bracket, every $1M in qualifying capital investment generates $210,000 in immediate tax savings. The Joint Committee on Taxation would score this as a revenue reduction in the 10-year budget window. **3. Structural Winners:** The primary beneficiaries are capital-intensive businesses across manufacturing ($CAT, $DE), industrial conglomerates ($GEV), transportation/logistics ($FDX), technology infrastructure ($AMZN), and industrial real estate ($PLD). The mechanism directly lowers the effective purchase price of machinery, equipment, aircraft, vehicles, and data center hardware. Historical precedent from 2017-2022 when 100% bonus depreciation was in effect shows a strong correlation with increased capital spending in these sectors. GE Vernova ($GEV, not $GE) is the correct pure-play for power generation equipment — note GE Aerospace ($GE at $283.57) is not a direct beneficiary of this tax mechanism. Amazon ($AMZN at $263.04) benefits both from logistics automation and AWS data center capex. FedEx ($FDX at $388.59) benefits from fleet and hub automation investments. **4. Real Market Price Trends:** REAL MARKET DATA from Yahoo Finance shows significant 30-day momentum across capital goods names: CAT (+21.37% to $810.05), FDX (+13.7% to $388.59), AMZN (+30.9% to $263.04), and PLD (+7.8% to $138.82). However, the 7-day trend is broadly negative: CAT (-3.02%), DE (-5.39%), FDX (-1.04%), PLD (-2.47%), suggesting short-term profit-taking or broader market rotation. DE at $560.02 shows only +0.81% 30-day change and a sharp 5.39% weekly decline, indicating agricultural equipment demand concerns may be partially offsetting bonus depreciation optimism. GE Aerospace ($GE at $283.57) shows modest +3.78% 30-day and flat weekly — its aerospace business is less tied to bonus depreciation than GEV's power equipment. **5. Timeline and Legislative Path:** The bill is at the earliest stage in both chambers. Path to enactment requires: (1) Senate Finance Committee markup and approval, (2) Senate floor vote, (3) House Ways and Means Committee markup and approval, (4) House floor vote, (5) conference committee (if different versions), (6) Presidential signature. Given Senator Cruz is a senior member but not the committee chair (Senator Wyden, D-OR chairs Finance), and the bill has no cosponsors listed, legislative velocity is currently low. However, bonus depreciation has strong bipartisan historical support — it was part of both the 2017 TCJA and the 2020 CARES Act. The identical House companion (HR3967) and related bills (HR1990, HR574, S187) indicate an active legislative coalition building. Realistic timeframe for enactment, if momentum builds: 12-24 months.