CREATE JOBS Act

The CREATE JOBS Act (S.2056), introduced by Senator Ted Cruz, aims to permanently amend the Internal Revenue Code of 1986 to allow a 100% tax deduction for qualified property investments. This means businesses could immediately deduct the full cost of capital expenditures, rather than depreciating them over several years. The bill was introduced in the Senate on June 12, 2025, and subsequently referred to the Committee on Finance, indicating it is in the initial stages of the legislative process. A companion bill, HR3967, has been introduced in the House, which could accelerate its path if both chambers advance the legislation. This bill does not involve direct government funding or appropriations. Instead, it proposes a change to the tax code that would reduce the tax burden for companies making capital investments. The mechanism is a tax deduction, which directly impacts corporate profitability by lowering taxable income. This incentive is designed to encourage businesses to invest in new equipment, facilities, and technology, thereby stimulating economic activity and job creation. Structural winners would be companies with high capital expenditure requirements across various sectors. This includes manufacturing companies like Caterpillar Inc. ($CAT) and Deere & Company ($DE), which frequently invest in heavy machinery and production facilities. Transportation and logistics companies such as United Parcel Service, Inc. ($UPS) and FedEx Corporation ($FDX) would benefit from accelerated deductions on fleets and infrastructure. Technology companies like Microsoft Corporation ($MSFT) and Amazon.com, Inc. ($AMZN) could see benefits from investments in data centers and other infrastructure. Real estate investment trusts (REITs) focused on industrial and data center properties, such as Prologis, Inc. ($PLD) and Equinix, Inc. ($EQIX), could also benefit as their clients increase capital investments. Home Depot, Inc. ($HD) could also benefit from increased business investment in property improvements. GE Aerospace ($GE) would benefit from investments in manufacturing and R&D facilities. The broad applicability of bonus depreciation means that any company planning significant capital outlays stands to gain. Looking at recent market data (as of 2026-04-06), several of these companies have shown positive 7-day changes: Caterpillar Inc. ($CAT) is up +8.06%, Deere & Company ($DE) is up +3.53%, GE Aerospace ($GE) is up +5.65%, Amazon.com, Inc. ($AMZN) is up +5.89%, Microsoft Corporation ($MSFT) is up +3.88%, Prologis, Inc. ($PLD) is up +2.77%, Equinix, Inc. ($EQIX) is up +5.4%, United Parcel Service, Inc. ($UPS) is up +2.33%, FedEx Corporation ($FDX) is up +5%, and The Home Depot, Inc. ($HD) is up +0.97%. While these movements are not directly attributable to this bill, the potential for future tax benefits could support investment in these types of companies if the bill progresses. The next legislative step for S.2056 is consideration by the Senate Committee on Finance. Given its early stage, the timeline for potential passage is uncertain and would depend on committee action and broader legislative priorities.