The impact of the biggest overhaul of the U.S. tax code inthree decades will spread far and wide starting next year,highlighted by a cut in the corporate rate to 21% from 35%, fullyallowable deductions for capital expenses and lower levies onrepatriating overseas profits.

Here’s how the law will most likely affect various industries:

Real Estate/Homebuilders

Republicans firmed up late support for the overhaul by adding ameasure that will provide a windfall to real estate investors likePresident Donald Trump. The change allows real estate businesses toclaim a new tax break that’s planned for partnerships, limitedliability companies and other so-called “pass-through”entities.

With U.S. housing on a roll since the financial crisis,homebuilders don’t want to see the good times end. Incentives thathave promoted home ownership over renting came under attack duringthe legislative process, but the industry’s powerful lobbyingorganizations were able to minimize the damage.

The bill will allow interest deductions on the first $750,000 innew mortgage debt, down from the current limit of $1 million; theHouse had called for slashing it to $500,000. It also won back$10,000 in deductions for property and local income taxes, a figurestill far below what many upper-income families pay in blue stateslike California, New York and New Jersey.

Technology

Tech stands to benefit from repatriation. U.S. companies aresitting on $3.1 trillion in overseas earnings, according to anestimate from Goldman Sachs Group Inc. The largest stockpilebelongs to Apple Inc. at $252 billion -- 94% of its total cash.Microsoft Corp., Cisco Systems Inc., Google parent Alphabet Inc.and Oracle Corp. round out the top five, data compiled by Bloombergshow.

One caveat is that the repatriation provision could generate alarge tax bill. In Apple’s case, a 14.5% rate would equate to $36.6billion in taxes, or about $7 a share, according to BloombergIntelligence.

Asset Managers

Analysts expect the bulk of the tax savings to be spent onincreasing dividends and share buybacks. That should push U.S.equity markets higher, increasing the value of investments held byasset managers.

Firms such as Federated Investors Inc. and Franklin ResourcesInc. could also see more demand for their money managementservices, thanks to tax cuts for individuals, especially thewealthy.

Banks

The tax bill may boost 2018 earnings of big U.S. banks by anaverage of 13%, according to Goldman Sachs. Leading the way will beWells Fargo & Co. (17%) and PNC Financial Services Group Inc.(15%).

Morgan Stanley says the overhaul is a net benefit for U.S. banksbecause it will help them compete better with lower-taxedinternational rivals. Many provisions in the bill, includingrepatriation of overseas cash, could spur U.S. mergers andacquisitions that would boost investment banking. And banks’ wealthmanagement units are likely to see more money rolling in becausethe bill reduces tax rates on the rich.

But a reduction on interest-expense deductions will weigh onearnings. That provision may also cause companies to borrow less.It could be especially painful for banks such as Synovus FinancialCorp. that have large exposure to real estate and commercial loans,Morgan Stanley said.

Lenders focused on consumers, such as Discover FinancialServices and Synchrony Financial, are better positioned, becauseindividuals already are unable to deduct interest expense, so therewouldn’t be a change in behavior, according to Morgan Stanley.

Private Equity

The reduction in corporate rates means companies should havemore cash to fund acquisitions, which could increase the value ofprivate equity-owned firms. There’s also likely to be more assetsto buy. Many conglomerates have been holding onto non-core assetsbecause they didn’t want to generate a big tax bill on thesale.

But just like banks, private equity will take a hit on thelowering of interest deductions. Financial firms use debt to fundacquisitions, and if borrowing becomes more costly that coulddisrupt their business models. It might also limit the size ofdeals.

Autos

The industry’s biggest companies, including General Motors Co.and Ford Motor Co., will benefit from the rate cut and thereduction on levies for repatriating overseas profits, according toUBS.

Big auto dealers, like AutoNation Inc., are also poised to dowell because they are focused in the U.S. and pay high taxrates.

Consumer Products/Retail

Retailers are primed to be big winners from the rate cut becausemany generate all, or at least an overwhelming majority, of theirincome in the U.S. and pay some of the highest tax rates of anyindustry.

Full and immediate deductions on capital expenditures couldallow at least one retailer to not owe any federal taxes the nexttwo years. Aaron’s Inc., which leases televisions and refrigeratorsto consumers at more than 1,700 stores, will be able to usedeductions on buying inventory, which are considered capitalinvestments, to wipe out its tax bill in 2018 and 2019, accordingto Stifel Nicolaus & Co.

Chains and consumer brands also expect the tax bill to boostdemand for their goods and services. Many of those companies relyon middle- and low-income shoppers for the bulk of their sales, andchanges to individual taxes -- such as doubling the standarddeduction -- will increase discretionary income.

Industrials

In machinery, trucking is likely to see the biggest impact,according to Jefferies LLC. The corporate rate cut would give U.S.transportation companies of all sizes more money to upgrade theirfleets with fuel-efficient vehicles. The bill’s increaseddeductions for capital spending would add another incentive to buynew 18-wheelers, a potential boon for truck makers like Paccar Inc.and Navistar International Corp.

The same can’t be said for farming and its equipment supplierslike Caterpillar Inc. Farmers are struggling to be profitable atcurrent crop prices, which means the corporate tax cut will havelittle impact on them. But that could change if prices rise,Jefferies said.

The tax cut could also spur industrial giants to divestbusinesses that aren’t core to current strategy, Jefferies said.Many conglomerates have maintained divisions because selling themwould generate a big tax bill.

The overhaul could be a boon for aircraft suppliers, like BoeingCo. and General Electric Co., because airlines need to upgradetheir fleets, too.

Energy

Oil-and-gas companies will be big winners because they pay thesecond-highest effective tax rate of any sector, at 37%, accordingto Bloomberg Intelligence. But a number of oil explorers andequipment providers won’t benefit because their operations areunprofitable.

The industry also benefits from a measure that opens a portionof Alaska’s Arctic National Wildlife Refuge to oil and gasdrilling, which could generate $1 billion in revenue over adecade.

The renewable-energy industry avoided taking a big hit bylobbying Republicans to keep a $7,500 electric-vehicle subsidy anda tax credit for wind-power production. But there is concern thatthe bill’s changes to how tax credits work may disrupt financing ofwind and solar projects.

The coal industry notched a victory by getting the corporatealternative minimum tax killed -- a move executives say will reducebankruptcies.

Hospitals and Insurers

The bill is estimated to boost insurance companies’ profits byas much as 15% because they pay high rates, according Ana Gupte, ananalyst at Leerink Partners.

But the repeal of Obamacare’s individual mandate won’t helphealth insurers and hospitals, which are coping with the Trumpadministration’s efforts to undermine the law. Ending the provision-- a requirement that all Americans carry health insurance coverageor pay a fine -- is likely to decrease the number of people who buycoverage. For hospitals, an increase in uninsured people meansfewer paying customers.

Pharmaceuticals

U.S. drugmakers will be one of the biggest beneficiaries of therepatriation portion of the bill. They’ve been sitting on billionsof dollars in overseas earnings and can now bring home that cash ata reduced rate. While the tax bill has been promoted by Republicansas a job creator, the reality is that drug companies are morelikely to return the money to shareholders, or use it to makeacquisitions.

Biotech and pharma companies will get a smaller tax credit fordeveloping drugs for rare diseases. Under current law, they candeduct 50% of the cost of testing drugs for rare or orphan diseasesthat affect only small numbers of patients. The revised bill cutsthat amount to 25%, raising government revenue by $32.5 billionover a decade.

Telecom Companies

This is another industry that is likely to increase capitalinvestments because telecom companies regularly need to upgradetheir networks. And the bill allows deductions on such spending tobe immediate, instead of over several years. AT&T Inc. has saidit will invest $1 billion more in U.S. infrastructure next yearunder the new tax plan.

Sports

Colleges have objected to the reversal of a rule that allowssupporters to make tax-deductible contributions to their teams, inreturn for priority seats at football and basketball games. Theprovision has been credited with the financial boom in collegesports. In a rush to limit the impact, athletic departments havebeen telling donors to prepay multiple years before Dec. 31 toretain the tax deduction.

University Endowments

About 30 colleges and universities, including Harvard, Yale andsmall liberal arts schools such as Amherst and Williams, may pay a1.4% tax on their endowment investment returns. Schools that wouldbe taxed have at least 500 students and more than $500,000 inendowment per student.

Colleges have widely opposed the bill, although the finalversion dropped a tax on graduate school tuition waivers thatsparked an outcry.

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