Globalization has transformed the way businesses grow. For Italian companies, the United States represents one of the most promising destinations for expansion. It offers a vast consumer market, advanced infrastructure, and a regulatory environment that rewards strategic investment. However, entering the U.S. market is not a simple decision. It requires careful planning, compliance with complex tax laws, and financial strategies that can turn costs into competitive advantages.
At Prager Metis, our Italian Global Services team specializes in guiding companies through this process. From evaluating entry strategies to leveraging tax incentives, we help businesses transform ambition into measurable success. Recent legislative changes, particularly the OBBBA Act (One Big Beautiful Bill Act), have made the U.S. tax landscape more favorable than ever for foreign investors. This article explains these developments and shows how accounting expertise can unlock significant value for Italian businesses.
Why the U.S. Market Is Strategic and Our Role as a Trusted Partner
The United States remains the world’s largest economy and offers unmatched opportunities for growth. It is home to a diversified consumer base with strong demand across multiple sectors, making it an ideal destination for companies seeking to scale internationally. The country’s ease of doing business, supported by transparent regulations and investor-friendly policies, creates a stable environment for foreign enterprises. Additionally, the U.S. boasts a skilled workforce and advanced infrastructure, which are essential for manufacturing and technology-driven industries. Federal and state-level incentives further enhance the appeal, providing financial benefits that can significantly reduce entry costs.
While these advantages are compelling, success in the U.S. market requires more than ambition. It demands a clear strategy, robust tax planning, and compliance with complex regulations. This is where Prager Metis steps in. Our Italian Global Services team offers specialized expertise in U.S. tax law, cultural nuances, and business practices. We provide comprehensive support that includes site selection, incentive negotiation, and cross-border tax compliance. Through strategic partnerships such as the Council of American States in Europe (CASE), we give clients direct access to 19 state economic development offices, ensuring priority access to local incentives and investment opportunities. Our mission is simple: to help Italian companies expand confidently and profitably.
The OBBBA Act: A Turning Point for Global Investors
Signed into law on July 4, 2025, the OBBBA Act introduces measures aimed at strengthening U.S. competitiveness and attracting global investment. This legislation is a game-changer for foreign companies, particularly those in manufacturing and capital-intensive industries. Here are the key provisions:
· Bonus Depreciation
Companies can now deduct 100 percent of the cost of machinery, equipment, and productive assets placed in service after January 19, 2025. This immediate expense accelerates return on investment and improves cash flow, making large-scale projects more financially viable.
· Section 179 Deduction
Businesses can claim an immediate deduction of up to 2.5 million dollars for qualifying assets, with a phase-out threshold at 4 million dollars. Both limits are indexed for inflation, ensuring continued relevance in future years.
· Section 163(j) Interest Deduction Limit
Interest deductions are capped at 30 percent of Adjusted Taxable Income (ATI). However, the OBBBA Act expands the ATI base, which benefits manufacturing and heavy industry by allowing greater deductions and reducing financing costs.
· International Provisions
The Act introduces NCTI (Net Cumulative Taxable Income) to replace GILTI, aligning U.S. rules with global standards and reducing unpredictability. The Foreign Tax Credit (FTC) has increased from 80 percent to 90 percent, minimizing double taxation. Additionally, FDDEI incentives encourage exports from U.S.-based entities, positioning the U.S. as a hub for global trade.
Additional Tax Opportunities
Beyond OBBBA, companies can leverage several strategies to optimize their tax position:
· Cost Segregation: Accelerated depreciation for real estate, generating upfront tax savings and liquidity.
· R&D Tax Credit: Federal credit of 11 to 16 percent on qualified research expenses, including engineering, prototypes, and testing.
· Reverse Sales and Use Tax Audit: Recover overpaid taxes, creating immediate cash flow benefits.
These tools are not just compliance measures—they are strategic levels that can significantly improve profitability.
Case Study: Italian Manufacturer in Virginia
An Italian mechanical company recently invested 30 million dollars in a new manufacturing facility in Virginia. By applying strategic tax planning, the company was able to significantly reduce its initial costs and improve cash flow. Through bonus depreciation, the company claimed a 4.2-million-dollar deduction on machinery and equipment. Cost segregation studies allowed an additional 1.5-million-dollar benefit on the real estate portion of the investment.
Furthermore, the company leveraged the R&D Tax Credit to reduce federal taxes by 200 thousand dollars. In total, these strategies generated 5.9 million dollars in tax savings during the first year alone. Virginia’s competitive tax environment, exemptions on manufacturing equipment under Sales and Use Tax rules, and access to skilled labor made it an ideal location for this expansion. This case demonstrates how proactive tax planning and expert guidance can transform a major capital investment into a financially optimized project.
Efficient Profit Repatriation
One of the most common concerns for Italian companies investing abroad is how to repatriate profits without incurring excessive tax burdens. Thanks to the Italy-U.S. tax treaty and participation exemption rules, profits earned in the U.S. can be repatriated with minimal additional taxation. This ensures that global expansion translates into real financial gains rather than unexpected liabilities.
Risk Management and Compliance
While the opportunities are significant, companies must also manage risks. Regulatory compliance, labor laws, and immigration requirements can vary by state and industry. Failure to address these issues early can lead to delays and increased costs. At Prager Metis, we help clients navigate these challenges by providing guidance on permits, workforce planning, and local relationships. Our approach ensures that compliance is not an afterthought but an integral part of the expansion strategy.
Key Takeaways for Italian Businesses
· The U.S. tax system is increasingly favorable for foreign investors.
· Strategic planning reduces entry costs and maximizes return on investment.
· Partnerships and compliance are essential for success.
· Incentives like bonus depreciation, Section 179, and R&D credits can significantly improve cash flow.
· Expert guidance is critical to avoid pitfalls and capture every available benefit.
At Prager Metis, we combine technical expertise with global insight to help Italian companies thrive in the U.S. market. From tax optimization to incentive programs, our mission is clear: turn opportunity into success.
