diff --git a/templates/ReactReduxSpa/package.json b/templates/ReactReduxSpa/package.json
index e8e04fd1..124f99d1 100644
--- a/templates/ReactReduxSpa/package.json
+++ b/templates/ReactReduxSpa/package.json
@@ -41,5 +41,8 @@
     "webpack": "^2.2.0",
     "webpack-hot-middleware": "^2.12.2",
     "webpack-merge": "^0.14.1"
+  },
+  "devDependencies": {
+    "babel-plugin-transform-react-jsx-source": "^6.22.0"
   }
 }
diff --git a/templates/ReactReduxSpa/webpack.config.js b/templates/ReactReduxSpa/webpack.config.js
index 4a09f5a1..2a3dd4d5 100644
--- a/templates/ReactReduxSpa/webpack.config.js
+++ b/templates/ReactReduxSpa/webpack.config.js
@@ -17,7 +17,7 @@ module.exports = (env) => {
         },
         module: {
             rules: [
-                { test: /\.tsx?$/, include: /ClientApp/, use: 'babel-loader' },
+                { test: /\.tsx?$/, include: /ClientApp/, use: { loader: 'babel-loader', options: { plugins: isDevBuild && ["transform-react-jsx-source"], cacheDirectory: true } } },
                 { test: /\.tsx?$/, include: /ClientApp/, use: 'awesome-typescript-loader?silent=true' }
             ]
         },
diff --git a/templates/ReactSpa/package.json b/templates/ReactSpa/package.json
index a4874e30..eac3e4a7 100644
--- a/templates/ReactSpa/package.json
+++ b/templates/ReactSpa/package.json
@@ -11,6 +11,7 @@
     "awesome-typescript-loader": "^3.0.0",
     "babel-core": "^6.17.0",
     "babel-loader": "^6.2.5",
+    "babel-plugin-transform-react-jsx-source": "^6.22.0",
     "babel-preset-es2015": "^6.16.0",
     "babel-preset-react": "^6.16.0",
     "bootstrap": "^3.3.6",
diff --git a/templates/ReactSpa/webpack.config.js b/templates/ReactSpa/webpack.config.js
index dc589094..d7233293 100644
--- a/templates/ReactSpa/webpack.config.js
+++ b/templates/ReactSpa/webpack.config.js
@@ -17,7 +17,7 @@ module.exports = (env) => {
         },
         module: {
             rules: [
-                { test: /\.ts(x?)$/, include: /ClientApp/, use: 'babel-loader' },
+                { test: /\.ts(x?)$/, include: /ClientApp/, use: { loader: 'babel-loader', options: { plugins: isDevBuild && ["transform-react-jsx-source"], cacheDirectory: true } } },
                 { test: /\.tsx?$/, include: /ClientApp/, use: 'awesome-typescript-loader?silent=true' },
                 { test: /\.css$/, use: isDevBuild ? ['style-loader', 'css-loader'] : ExtractTextPlugin.extract({ use: 'css-loader' }) },
                 { test: /\.(png|jpg|jpeg|gif|svg)$/, use: 'url-loader?limit=25000' }