“On this July 4, ABC celebrates Congress and the White House working together to bring this pro-growth tax reform to reality for the millions of hardworking Americans who build and power our economy,” said Kristen Swearingen, ABC vice president of government affairs. “This new law provides long-overdue tax certainty that empowers construction businesses to invest in their workforce, expand operations and keep America building.”

This legislation provides certainty to the more than 95% of all American businesses structured as S corporations, partnerships and sole proprietorships. These pass-through businesses employ 62% of the private sector workforce and form the economic backbone of virtually every community nationwide.

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% Bonus Depreciation: Renewing immediate expensing of capital investments through 100% bonus depreciation will encourage construction firms to invest in new equipment and technologies—boosting productivity 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.

“Now that this critical legislation has been signed, we urge Congress and the administration to build on this momentum by enacting additional reforms to reduce regulatory burdens on businesses,” Swearingen said. “Smart, targeted regulatory relief will give contractors even greater ability to create jobs, strengthen their communities and drive economic growth nationwide.”

ABC and its 67 chapters, representing more than 23,000 members and millions of construction workers, have been strong advocates for this legislation and joined with other organizations representing Main Street businesses in support of its passage.