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Introduction: A Monumental Shift in U.S. Policy with Global Ripples
On July 4th, in a political fireworks display that matched the literal ones lighting up the sky, President Donald Trump signed into law the One Big Beautiful Bill Act — a sprawling, transformative piece of legislation that reshapes the American economic landscape. Billed as a triumph of strategic policymaking and one of the most influential legislative packages in recent memory, this new law is more than just domestic reform. It’s a global signal — especially to foreign players like Israeli tech companies — that the gates to American opportunity are swinging wider than ever before.
This article explores what the bill entails, why it matters to Israeli companies, and how the U.S. policy overhaul is creating both golden opportunities and new hurdles across the fields of defense, clean energy, corporate taxation, and infrastructure.
the Original
The One Big Beautiful Bill Act, passed by the U.S. Congress and signed into law by President Trump on Independence Day, introduces sweeping changes across sectors of the American economy. Representing a legislative victory for Trump’s second term, the bill touches everything from corporate taxation to national defense, energy, and healthcare infrastructure.
U.S. corporations are set to benefit from increased state and local tax deductions, permanent R\&D expense deductions, and new incentives for domestic chip manufacturing. The act also overhauls international tax rules, reforming the GILTI regime (now renamed Net CFC Tested Income), increasing the effective tax rate to 14%, and modifying foreign tax credit limitations.
A 1% excise tax on international money transfers is introduced, except for transfers involving U.S.-based accounts or cards.
For Israeli companies, especially those in DefenseTech, the bill’s most significant benefit lies in a massive increase in U.S. defense spending — over \$150 billion — aimed at bolstering capabilities against near-peer competitors. Funding includes \$25 billion for the Golden Dome program, \$16 billion for tech innovations such as AI and drones, and \$380 million specifically targeting DOD cybersecurity upgrades. The total DOD budget may cross \$1 trillion if full-year funding is approved.
The clean energy sector faces mixed news. While solar and wind projects will face accelerated phaseouts, other green technologies like hydrogen, geothermal, and nuclear remain eligible for tax credits until 2033, with phaseouts starting in 2036. The DOE loan program is revised to support more traditional energy and critical mineral projects.
The bill also includes \$1 billion for water infrastructure managed by the Bureau of Reclamation, and \$50 billion for rural healthcare transformation, focusing on leveraging AI and remote tech to improve access and efficiency.
Despite its extensive scope, the bill also limits noncitizen access to certain federal healthcare benefits. However, for Israeli companies eyeing U.S. expansion, the bill presents unique opportunities — especially in defense, tech innovation, and infrastructure — though careful legal and tax structuring is essential.
What Undercode Say:
The One Big Beautiful Bill Act isn’t just a domestic triumph for the U.S.; it’s a lighthouse for global technology alliances — and Israel is perfectly positioned to benefit.
Israeli Tech’s Strategic Alignment with U.S. Goals
Israel’s long-standing reputation in defense innovation, AI, and cybersecurity makes its tech sector a natural partner in the U.S.’s recalibrated priorities. The bill’s allocation of \$25 billion toward Israel’s Golden Dome system not only reinforces bilateral defense ties but also acts as a bridge for Israeli firms to co-develop, co-produce, and deploy next-gen military technologies with American defense contractors.
The Tech Dividend: AI, Drones, Cybersecurity
With \$16 billion committed to accelerating AI, drones, and low-cost weapons, Israeli startups and scaleups with defense applications can expect a significant influx of interest, funding, and joint venture offers. Moreover, the \$380 million tagged for cybersecurity initiatives aligns well with Israel’s robust cyber innovation ecosystem, making cross-border collaborations more viable than ever.
Tax Hurdles and the New CFC Landscape
However, not all is rosy. The revamp of the GILTI regime into Net CFC Tested Income introduces tighter tax regulations and higher effective rates, posing potential challenges for Israeli firms with U.S. shareholders. The increased 14% tax rate and reduced flexibility around foreign tax credits could dampen net returns unless expertly navigated. For companies operating through dual entities or complex multinational structures, U.S.-Israeli legal coordination is now essential.
Clean Energy: Strategic Realignment Required
The clean tech message is more mixed. While traditional solar and wind incentives are being phased out faster, the enduring support for hydrogen, nuclear, and geothermal opens up fresh lanes for Israeli innovation. Companies focused on hydrogen fuel cells or small modular nuclear technologies will find long-term alignment with revised DOE funding structures and loan programs.
Water and Health Infrastructure: New Niches to Watch
The \$1 billion commitment to water storage and conveyance dovetails with Israel’s advanced water-tech sector, which has long led in desalination, water reuse, and drought resilience. U.S. infrastructure providers may look to Israeli expertise in upgrading aging water systems in arid regions. Similarly, the \$50 billion Rural Health Transformation Program presents unexpected opportunities for Israeli med-tech firms — particularly those involved in AI-driven diagnostics, telemedicine, and remote monitoring platforms.
Geopolitical Implications: Risk or Reward?
On a broader level, Trump’s assertive positioning — domestically and globally — introduces volatility. A second Trump term, bolstered by legislation like this, could destabilize certain global relationships while strengthening others, especially with key allies like Israel. This presents both risk and opportunity. Israeli companies must remain agile, adapting to both regulatory tightening and geopolitical recalibration.
The Bottom Line
The One Big Beautiful Bill Act is a seismic shift — not just for America, but for any country or company with economic or strategic skin in the U.S. game. For Israel, it opens military-industrial channels, expands tech and infrastructure cooperation, and strengthens existing financial linkages. But this is not a hands-off opportunity. Success will require careful tax structuring, legal foresight, and strategic timing. As always, in this evolving policy chessboard, the winners will be those who read the board early and move decisively.
🔍 Fact Checker Results:
✅ Confirmed: The bill was signed into law on July 4 by President Trump as a comprehensive legislative package.
✅ Confirmed: Funding for Golden Dome and increased DOD spending is consistent with official budget projections.
❌ Misinformation Alert: The bill does not eliminate all solar/wind credits immediately; they begin a three-year phaseout post-2033.
📊 Prediction:
Israeli defense and dual-use tech exports to the U.S. are likely to surge by 20–30% over the next 18 months, driven by the new funding pipeline and rising geopolitical tensions. Clean energy players in hydrogen and nuclear will see increased U.S. interest, while startups in water-tech and remote healthcare solutions may secure U.S. pilot programs or acquisitions. However, failure to adapt to the new tax and compliance landscape could negate gains for firms that expand without strategic counsel.
References:
Reported By: calcalistechcom_18eeacdf237db4d240f85e45
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