The newly passed One Big Beautiful Bill (OBBB) introduces major tax reforms impacting contractors and construction businesses. Key highlights include permanent 100% bonus depreciation, expanded Section 179 expensing, restoration of R&D deductions, and indefinite extension of the 20% QBI pass-through deduction. Other business-friendly changes allow more generous interest deductions, income deferral for large residential projects, and immediate expensing for U.S. production property. Temporary benefits include an overtime deduction through 2028 and a higher SALT deduction cap through 2029 before it phases back down.

For construction firms, the bill also accelerates the cutoff for certain green energy credits (179D and 45L) and provides enhanced tax-saving opportunities for both individuals and businesses. Most of these benefits are heavily front-loaded through 2028, making it critical to plan ahead with your tax professional. Acting now ensures you can fully leverage these deductions, credits, and incentives before key provisions expire or revert. Click here to read more.