Associated Builders and Contractors applauds the U.S. Senate’s passage of H.R. 1, the One Big Beautiful Bill Act, as critical legislation delivering much-needed tax relief to the U.S. construction industry and other Main Street businesses.
ABC and its 67 chapters, representing more than 23,000 member companies and millions of construction workers nationwide, are proud to support this pro-growth, pro-worker legislation. On June 28, ABC joined a group of organizations representing millions of Main Street businesses in a letter expressing strong support of the package.
“Tax certainty and pro-growth policies are not abstract policy goals for construction businesses—they are the foundation that allows ABC members to invest, grow and keep America building,” said Kristen Swearingen, ABC vice president of government affairs. “We thank the Senate for passing this important legislation and urge the U.S. House of Representative to take swift action to send it to the president’s desk.”
The legislation includes a number of tax provisions that will directly benefit contractors, American workers and the broader economy. ABC strongly supports the following reforms included in the bill:
- Making the Small Business Deduction Permanent and Stronger: Solidifying the Section 199A deduction will provide tax certainty for pass-through businesses, allowing contractors to reinvest in their operations and workforce without fear of future tax hikes.
- Permanent Estate Tax Relief: This provision ensures that family-owned construction businesses can pass along ownership to the next generation without facing destructive estate tax burdens.
- Restoration of 100 percent Bonus Depreciation: Renewing immediate expensing of capital investments through 100 percent bonus depreciation will encourage construction firms to invest in new equipment and technologies—boosting productivity, innovation and economic growth.
- Revived Expensing of R&D Costs: The bill permanently restores the ability for businesses to immediately deduct domestic research and experimental expenditures, providing critical support for construction innovation. Whether it’s hands-on problem-solving that happens on jobsites or improving project delivery methods, this provision gives contractors the financial flexibility to invest in finding better, faster and safer ways to get the job done right—without waiting years to see a tax benefit.
- No Tax on Overtime for American Workers: Exempting overtime pay from federal income tax delivers direct, meaningful relief to the hardworking men and women of the construction trades—rewarding long hours on the jobsite.
- Expanded 529 Accounts for Skilled Trades Training: The legislation expands the use of 529 savings accounts to cover career and technical education in the skilled trades, helping the next generation of construction professionals enter the workforce without student debt.
