Tax Law Extension Critical for Jobs, Economic Growth Study Finds

New Study Details Tax Cuts and Jobs Act’s Positive Impact on America’s Engineering Industry  

The 2017 Tax Cuts and Jobs Act (TCJA) has enabled the nation’s engineering industry to create jobs, invest in emerging technologies, and expand their businesses according to a new study released by the research arm of the American Council of Engineering Companies (ACEC).

The study from the ACEC Research Institute also warns of job loss and reduced economic growth if Congress fails to extend the law before the end of the year.   

“An America First economic policy starts with the nation’s engineering industry,” said Linda Bauer Darr, ACEC president and CEO. “The effects of the Tax Cuts and Jobs Act on our industry have resulted in broad optimism and tangible investments in people and projects. Eliminating the TCJA would deal a serious blow to job creation and economic growth and could imperil the development of America’s critical infrastructure.”  

Read the new study here.

Implications for Policy  

As the expiration date for key TCJA provisions approaches at the end of 2025, the study highlights a critical policy crossroads. An extension—and potential enhancement—of these tax cuts, such as restoring the full State and Local Tax (SALT) deduction and reducing the corporate tax rate on domestic production to 15%, would further bolster industry growth and economic stability.  

Key Findings  

• Stronger Job Growth and Wages: Without an extension, the industry could lose 391,000 jobs and $14 billion in wages over the 2026–2029 period. Maintaining the TCJA provisions would safeguard and expand employment opportunities within the sector.  

• Investments in Workforce and Technology: Most firms reinvested tax savings into “Investments in People,” such as higher wages, enhanced benefits, new hiring initiatives, and expanded training programs. Technological improvements were also a key area of investment.  

• Wider Economic Contributions: The additional industry activity fueled by tax cuts would generate $1.4 trillion in revenue for the broader U.S. economy in 2026 alone, supporting nearly 7 million jobs, $454 billion in wages, and $785 billion in GDP.