Daimler AG will benefit from the new tax cuts in the U.S. to the tune of $1 billion.

Daimler AG expects the reduction in U.S. federal taxes to boost the company’s net income by roughly 1 billion euros, which will lead to higher dividends next year for automaker’s shareholders around the world, the company said in a statement released during the Christmas holidays.

The new tax law pushed by President Donald Trump includes the permanent reduction of the U.S. corporate income tax rate from 35% to 21%, starting Jan. 1, 2018.

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“Due to the broadly based U.S. industrial and financial services business, combined with a material value added, Daimler — similar to many other local U.S. companies — benefits from the decided tax reform,” according to a statement by Daimler, which builds, cars, heavy-duty trucks and large diesel engines at operations spread across the United States with major employment clusters in Portland, Oregon, Detroit and Tuscaloosa, Alabama. (more…)