Billionaire GoDaddy founder Bob Parsons says he's giving out $1.3 million worth of bonuses to his staff on Friday, thanks to the new Republican tax reform law.

The bill, which was signed into law by President Trump on Friday, slices the corporate tax rate from 35% to 21%.

"The passage of the tax credit is a catalyst for explosive economic growth. On a massive scale, the lowered federal tax burden on businesses will increase investment, entrepreneurship and corporate philanthropy," Parsons said in a press release. "I've always believed in sharing good news and have decided to celebrate the tax plan by giving back to my staff."

Parsons in 2014 walked away from his domain hosting service company known for its racy ads. He now runs YAM Worldwide, an entrepreneurial conglomerate.

The firm employs 725 people, and the 594 who have been with the company longer than six month will each receive a $2,000 bonus, according to the press release. All other staffers will get $1,000. The bonuses total $1.3 million.

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Parsons's announcement follows similar promises of bonuses and raises from companies including Wells Fargo (WFC), AT&T (T) and Comcast (CMCSA). They've all praised the tax reform legislation as a boon for business.

Also on Friday, Bank of America CEO Brian Moynihan sent a memo to employees praising the tax reform measure and the company's financial successes. He also promised to deliver a $1,000 bonus to 145,000 BoA employees who make less than $150,000 per year.

Yet, the promises of raises and one-time bonuses come as the tax bill's critics caution that companies could use the windfall from lower taxes to buy back shares or pay bigger dividends to their shareholders -- rather than using the extra money to bolster their workforces or hike wages.

Just 14% of CEOs surveyed by Yale University said their companies plan to make large, immediate capital investments in the United States. Capital investments, like building plants and upgrading equipment, can lead to hiring.

And history shows corporations don't typically use cash windfalls to boost wages. In 2004, when Congress offered tax breaks for companies to bring foreign profits back home, businesses used much of their cash on share buybacks.

--CNNMoney's Matt Egan contributed to this report.