(Reuters) - The Republican-led U.S. House of Representatives on Wednesday passed the biggest overhaul of the U.S. tax code in 30 years, sending a sweeping $1.5 trillion bill to President Donald Trump for his signature.
The tax plan is designed to kick-start economic growth in part by offering new incentives for capital investment, which would allow businesses to lower their tax bills by writing off the cost of things like new machinery more quickly.
The tax reform includes cuts to corporate tax rates and a cap on business deductions for debt interest payments among others.
The following is a list of U.S. companies that have talked about the impact of tax code revamp:
RenaissanceRe Holdings Ltd (RNR.N):
The reinsurer said on Friday it expects to write down a portion of its deferred tax asset and currently estimates that this anticipated write-down will reduce its net income by about $40 million in the period in which the tax bill is enacted.
Sinclair Broadcast Group Inc (SBGI.O):
The U.S. broadcaster said on Friday it would pay a special bonus of $1,000 to almost 9,000 full-time and part-time employees at all of its stations and subsidiaries, excluding senior level executives as a result of the tax reform legislation.
Mallinckrodt Plc (MNK.N):
The drugmaker on Friday said in a filing that if the Tax Cut and Jobs Act is approved in its current form, the company is expected to have a neutral to slightly positive impact on its adjusted tax expense. The company also said the reform would result in a deferred tax benefit of $450 million to $500 million to the company.
NuVasive Inc (NUVA.O):
The medical device maker said on Thursday it sees savings from tax reforms boosting adjusted earnings by more than 10 percent in the beginning of 2018.
Accenture Plc (ACN.N):
The consulting and outsourcing firm said on Thursday that it expects to record a noncash expense of up to $500 million in fiscal 2018 to reflect lower tax rates on the company’s U.S. deferred tax assets.
Wells Fargo (WFC.N):
The third-largest U.S. bank by assets said on Wednesday it would raise the minimum hourly pay rate to $15 for employees, from the current minimum hourly rate of $13.50.
Fifth Third Bancorp (FITB.O):
The Ohio-based regional bank said on Wednesday it would raise the hourly wage for nearly 3,000 of its employees to $15 and give a one-time bonus of $1,000 to more than 13,500 employees.
Comcast Corp (CMCSA.O) The cable provider said on Wednesday it would give $1,000 bonuses to more than 100,000 employees and invest $50 billion over the next five years in its infrastructure.
AT&T Inc (T.N):
The No.2 U.S. wireless carrier said on Wednesday it 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 of its U.S. employees.
Boeing Co (BA.N):
Chief Executive Dennis Muilenburg on Wednesday said the company would invest $300 million in employee facilities and programs as a result of the new law.
FedEx Corp (FDX.N):
Chief Financial Officer Alan Graf said on Tuesday that if the tax bill is enacted, the company expects its earnings per share to increase by $4.40 to $5.50 per share for fiscal 2018, before mark-to-market year-end pension accounting adjustments, mainly due to revaluation of net deferred tax liabilities. This range also includes an estimated 85 cents to $1 per share due to a lower tax rate on earnings in 2018.
Express Scripts Holding Co ESRX.O:
Chief Financial Officer James Havel said on Dec. 14 that if the tax reform legislation passes, the company’s tax expense would decrease by about $850 million to $900 million in 2018 or $1.60 per share in adjusted earnings. The company also said the valuation change in its deferred tax liability due to the tax rate change would result in a one-time increase in earnings of about $1.2 billion or $2 per share.
Delta Air Lines Inc (DAL.N):
The U.S. airline said last week that if the current tax reforms are passed, it could add $1 to $1.25 to its 2018 earnings per share. The company said it may record a one-time tax expense of $150 million to $200 million.
Home Depot Inc (HD.N):
Chief Financial Officer Carol B. Tomé said on investor day on Dec. 6 that the company “might” have an immediate benefit of $1.6 billion if the tax reform “in its current state” becomes law.
Compiled by Bengaluru Newsroom