The “One Big Beautiful Bill” (OBBB) introduces major federal tax changes affecting construction and contracting businesses. Key updates include permanent 100% bonus depreciation, an increased Section 179 expensing limit of $2.5M, full expensing for certain U.S. production property, and the permanent 20% pass-through business deduction. Other important changes include expanded interest deductions, a temporary rise in the SALT cap, restored R&D expense deductions, and new rules allowing income deferral for larger residential projects.

Many of these provisions are front-loaded through 2028, including a temporary overtime deduction and enhanced deductions for tips, auto loan interest, and estate planning. Contractors and business owners should review these changes with their tax professional to take full advantage before key benefits phase out and ensure their business captures all available tax savings. Click here to read more.