{"id":61732,"date":"2025-07-09T21:32:32","date_gmt":"2025-07-09T21:32:32","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/07\/09\/what-donald-trumps-big-beautiful-bill-means-for-corporate-america\/"},"modified":"2025-07-09T21:32:32","modified_gmt":"2025-07-09T21:32:32","slug":"what-donald-trumps-big-beautiful-bill-means-for-corporate-america","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/07\/09\/what-donald-trumps-big-beautiful-bill-means-for-corporate-america\/","title":{"rendered":"What Donald Trump&#039;s &#039;big, beautiful bill&#039; means for corporate America"},"content":{"rendered":"<p> \n<br \/><br \/>\n<iframe loading=\"lazy\" title=\"Tariff war big boost for jean maker Duer\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/h2zHWeetYv0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><br \/>\n<\/iframe><\/p>\n<p> Donald Trump<\/p>\n<p>                        \u2018s \u201cbig, beautiful bill\u201d delivers big wins for private equity and fossil fuels, while hurting the renewables industry and some of the hottest companies in Silicon Valley. <\/p>\n<p> The sweeping tax and spending legislation has been broadly embraced by American business thanks to the corporate tax cuts, enacted during Trump\u2019s first term as president, which will be extended. But it also creates winners and losers in critical U.S. industries. <\/p>\n<p> A blizzard of last-minute changes as the bill moved through Congress by razor-thin margins spared some sectors \u2014 such as healthcare \u2014 from the most severe cuts, and stripped out some of the controversial provisions affecting investors. <\/p>\n<p> One beneficiary is the US$13 trillion private capital industry. Investment firms such as Blackstone Inc. and Apollo Global Management LLC won big in the bill as lawmakers left its prized carried interest tax loophole untouched \u2014 after Trump said he would close it. <\/p>\n<p> \u201cIf you are sitting in a private assets seat, this is a very good bill for you,\u201d said Michael Pedroni, a former U.S. Treasury official who now runs the consultancy Highland Global Advisors. \u201cThis bill represents a very big win for private assets.\u201d <\/p>\n<h2>Finance<\/h2>\n<p> The carried interest provision saves buyout groups billions of dollars a year by enabling dealmakers to pay the long-term <\/p>\n<p>                        capital gains tax rate<\/p>\n<p>                         on the performance profits they earn, instead of far higher income tax rates. <\/p>\n<p> The legislation will also lead to lower tax rates for many private equity-backed companies by enshrining tax deductions for interest on debt and expanding them to include depreciation and amortization. <\/p>\n<p> The bill also almost halved available funds for the Consumer Financial Protection Bureau, a win for banking executives that have accused the watchdog of overstepping its mandate. <\/p>\n<p> Congress dropped a proposal for the \u201crevenge tax,\u201d or levies on companies and investors from countries seen as having punitive tax codes, which had risked hitting U.S. money managers by taxing many of their investors at higher rates than their foreign competitors. <\/p>\n<p> However, the investors did not win on everything. Despite a lobbying effort, private credit funds were not able to convince the Senate to include provisions that would have provided nearly US$11 billion of tax credits over the coming decade to some of their funds. <\/p>\n<p> That provision to limit taxes on dividends paid to investors in so-called business development companies \u2014 one of the primary investment vehicles used by the private credit industry \u2014 was dropped from the final bill. <\/p>\n<h2>Retail<\/h2>\n<p> Among the most controversial measures is lower spending on federal food assistance, intended to partially offset the deficits caused by tax cuts. <\/p>\n<p> The estimated US$9 billion in reduced payments from the Supplemental Nutrition Assistance Program (Snap) next year will hit the nation\u2019s grocery spending on food and soda \u2014 albeit by less than a per cent, according to Morgan Stanley. <\/p>\n<p> Food companies Conagra Brands Inc., Kellogg and Kraft Heinz Co. had the highest shares of spending by Snap users, the bank said, citing data from the market research group Numerator. <\/p>\n<p> Food industry groups said they were happy to have beaten back more severe cuts to Snap envisaged in earlier versions of the bill, but the impact will be felt. <\/p>\n<p> \u201cFor some grocers serving low-income areas, these changes in Snap may present steep challenges to overcome \u2026 stable Snap benefits are what make it possible to keep stores open in underserved communities,\u201d said Stephanie Johnson, group vice-president at the National Grocers Association. <\/p>\n<p> In contrast, restaurants have praised the US$25,000 tax deductions for tips paid to wait staff and bartenders. <\/p>\n<p> The bill benefits bricks-and-mortar retailers over online competitors by phasing out tariff exemptions for imported shipments from anywhere in the world valued at less than US$800. This \u201c<\/p>\n<p>                        de minimis<\/p>\n<p>                        \u201d exemption \u2014 which Trump has already ended for Chinese imports \u2014 helped online retailers such as Amazon.com Inc., Temu and Shein to undercut smaller U.S.-based companies by shipping goods directly from abroad. <\/p>\n<h2>Healthcare<\/h2>\n<p> A similar process played out in the healthcare sector, where the most severe cuts to Medicaid were walked back. <\/p>\n<p> The final legislation left enough of the government health insurance programme for low-income Americans intact that shares of\u00a0for-profit hospital chains such as Tenet Healthcare and HCA Healthcare have climbed sharply this year, with Tenet hitting its highest level in more than two decades in July. <\/p>\n<p> Still, the cuts are sharp, with non-partisan analysis projecting the bill will increase the number of people without health insurance by 11.8 million by 2034. <\/p>\n<p> Smaller hospitals in particular could struggle since many rely more on Medicaid. <\/p>\n<p> \u201cLarger hospitals are going to be much better positioned to weather the storm than smaller hospitals,\u201d said Wesly Pate, a senior portfolio manager at Income Research + Management. <\/p>\n<h2>Energy<\/h2>\n<p> A surprise, last-minute winner in the bill was the coal industry, which the Trump administration has deemed vital for meeting booming power demand and reshoring manufacturing. <\/p>\n<p> Producers of metallurgical coal \u2014 which is used to make steel \u2014 will now be able to claim back 2.5 per cent of their costs against their taxes until 2029. The industry has struggled with low prices, which it says are caused by Chinese market interference. <\/p>\n<p> \u201cWe couldn\u2019t be more appreciative of what Trump is doing,\u201d said Randall Atkins, chief executive of Ramaco Resources. <\/p>\n<p> Certain zero-carbon energy sources retained lucrative tax credits. \u201cGeothermal, hydropower and nuclear certainly make it out best in this bill,\u201d said Isaac Brown, of 38 North Ventures, a clean energy venture capital fund. <\/p>\n<p> But many solar and wind projects will lose access to investment and production tax credits. Tax incentives for electric vehicles \u2014 a hallmark of former president Joe Biden\u2019s <\/p>\n<p>                        Inflation Reduction Act<\/p>\n<p>                         clean-energy law \u2014 will be scrapped after September. <\/p>\n<p> Credits for homeowners who install solar panels and heat pumps will be wound down after 2025, prompting fears that the bill will trigger a wave of contractor bankruptcies. In 2023, the Treasury reported that it had given out US$8.4 billion under this tax credit. <\/p>\n<p> Battery manufacturers have access to tax credits until 2033, but will be \u201chammered\u201d by new rules requiring a higher level of U.S.-made content to qualify for tax credits, according to Norton Rose Fulbright deal lawyer Keith Martin. <\/p>\n<h2>Tech<\/h2>\n<p> Changes to renewables policy also badly hit Tesla Inc. Elon Musk\u2019s electric- vehicle maker sells batteries, runs a network of supercharger stations and builds solar roof tiles. It benefits from the EV tax incentives and makes billions of dollars from selling emission credits that the bill will undermine. <\/p>\n<p> Artificial intelligence<\/p>\n<p>                         companies are another loser from the bill. Despite a fierce lobbying effort backed by the likes of Amazon, Google, Microsoft Corp. and Meta Platforms Inc., the Senate voted down a proposed 10-year moratorium on state-led regulation of AI. This means tech companies developing the powerful technology \u2014 including start-ups OpenAI and Anthropic \u2014 can expect a series of new rules across the U.S. <\/p>\n<p> New York legislators have already passed a bill requiring AI companies to publish their safety reports or face fines, which is pending the governor\u2019s signature. In September, a controversial California bill was vetoed by Governor Gavin Newsom, who cited concerns that it could stifle innovation. <\/p>\n<p> Private space companies, such as Musk\u2019s SpaceX and Jeff Bezos\u2019s Blue Origin, will benefit from a provision that will allow spaceports to be financed in the municipal bond market. <\/p>\n<h2>Defence<\/h2>\n<p> America\u2019s defence industry is one of the biggest winners. It will add another US$150 billion to a Pentagon budget that was already heading towards a record US$1 trillion. <\/p>\n<p> The extra money includes about US$23 billion to build Trump\u2019s proposed \u201cGolden Dome\u201d missile defence system and US$28 billion for shipbuilding, with a focus on unmanned vessels, according to the Congressional Budget Office. The extra spend will also help buy more artillery and ammunition. <\/p>\n<p> The Golden Dome project is expected to benefit America\u2019s largest defence contractors, including Lockheed Martin and RTX, that build current- generation missile defence systems, as well as emerging military players such as Anduril and established tech contractors such as Palantir, which also works for the government on immigration. <\/p>\n<p> The shipbuilding funds will benefit companies such as HII, which makes aircraft carriers and submarines. General Dynamic\u2019s Electric Boat subsidiary should also benefit. <\/p>\n<h2>Universities<\/h2>\n<p> A number of the wealthier universities in the US will pay substantially more tax as a result of the legislation. <\/p>\n<p> While less punitive than earlier drafts, the bill imposes a tax on investment earnings at universities of up to eight per cent, for those with an endowment value per student in excess of US$2 million. <\/p>\n<p> Phillip Levine, an economist at Wellesley College, estimated that just 16 universities would pay the tax, with Harvard taking the greatest hit at US$267 million a year based on past investment earnings. <\/p>\n<ul class=\"related_links\">\n<li>Canada&#8217;s copper trade with the U.S. under threat as Trump dangles tariff on the metal<\/li>\n<li>Trump says Aug. 1 tariff deadline won\u2019t be extended<\/li>\n<\/ul>\n<p> Levine said another impact would be raising college costs through changes to student loans and wider cuts in federal healthcare and nutrition support, which would squeeze funding to many public universities from state governments seeking to compensate. \u201cIn the hierarchy of medical care, hunger and higher education, higher education comes last,\u201d he said. <\/p>\n<p> <em>Reporting by Gregory Meyer, Antoine Gara, Martha Muir, Will Schmitt, Eric Platt, Andrew Jack and Patrick Temple-West in New York, Cristina Criddle and Tabby Kinder in San Francisco, and Rafe Uddin and Sylvia Pfeifer in London<\/em> <\/p>\n<p> <em>\u00a9 2025 The Financial Times Ltd<\/em> <\/p>\n\n<br \/>What Donald Trump&#039;s &#039;big, beautiful bill&#039; means for corporate America<\/a><br \/>\n<br \/>2025-07-09 21:32:32<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Donald Trump \u2018s \u201cbig, beautiful bill\u201d delivers big wins for private equity and fossil fuels, while hurting the renewables industry and some of the hottest companies in Silicon Valley. 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