Following congressional approval on Wednesday of a contentious federal tax reform bill that will see the corporate tax rate plummet to 21 percent from the current 35 percent rate, Boeing [BA] said it plans $300 million in incremental investments and charitable contributions as a result of the pending law.
The company said the bill, which President Donald Trump supports and will soon sign, will lead innovation and investment in the U.S.
“On behalf of all our stakeholders, we applaud and thank Congress and the administration for their leadership for their leadership in seizing this opportunity to unleash economic energy in the United States,” Dennis Muilenburg, chairman, president and CEO of Boeing, said in a statement. “It’s the single most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
The $300 million in new investments Boeing plans are divided into three equal parts, including $100 million in infrastructure the company’s “workplace of the future” for its employees and $100 million in various workforce development initiatives such as training and education “to meet the scale needed for rapidly evolving technologies and expanding markets,” the company said.
Another $100 million will be for various corporate giving and charitable contributions.
The Aerospace Industries Association, which lobbies for the aerospace and defense industry in Washington, D.C., also praised the sweeping tax package.
“This legislation will unleash our industry’s global competitiveness and potential to create jobs for the American people,” David Melcher, president and CEO of AIA, said in a statement. He added that “The aerospace and defense industry is the heartbeat of the American economy, employing 2.4 million people in the United States, constituting 13 percent of the U.S. manufacturing base, and boasting a proven track record for creating more high-skill, high-wage jobs with the economic boost that only comprehensive tax reform can offer.”
Lockheed Martin [LMT] also issued a statement on the legislation.
“The tax reforms passed by Congress help level the playing field for U.S. manufacturers and strengthen the many small- and medium-sized businesses that make up our supply chain," Lockheed Martin said. "These reforms will allow industry to compete effectively in the global market while encouraging continued investment in technology and advanced manufacturing in the United States.”
The bill goes into effect in 2018.