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THE VOICE OF THE MERIT SHOP

ABC is the voice of the merit shop on Capitol Hill! Sending letters to Congress allows ABC to publicly advocate for the views and interests of our more than 23,000 members. By corresponding with U.S. House of Representatives and Senate members, ABC promotes fair and open competition in the construction industry and fights to protect merit shop contractors around the country.

House Committee Passes Key Tax Measure

On May 14, after a more than 17-hour markup, the U.S. House Committee on Ways and Means, the chief tax writing committee in Congress, passed its recommendations for President Trump’s One, Big, Beautiful Bill in a 26-19 vote. Ahead of the hearing, ABC sent a letter to the committee expressing strong support for the measure. Specifically, ABC supported the bill’s permanent expansion of a 23% small business deduction under Section 199A and permanent relief from the estate tax. In addition, the legislation delivers a series of reforms that directly strengthen the construction sector, including:

  • Full and Immediate Expensing + Expanded Section 179: By restoring 100% bonus depreciation and doubling Section 179 expensing to $2.5 million, the bill supports critical reinvestment in equipment, vehicles, and tools—assets our members need to stay productive, safe, and competitive.
  • Restored Interest Deductibility: Construction firms often finance labor and materials across long project timelines. This provision allows them to deduct legitimate interest costs, improving cash flow and supporting sustainable growth.
  • Immediate Expensing for R&D: Many contractors are innovating—developing energy-efficient systems, project management platforms, and safety technologies. This provision rewards that investment and keeps jobs and IP in the U.S.
  • Incentives for U.S.-Based Manufacturing Projects: When America builds, our members get to work. Enhanced cost recovery for domestic manufacturing structures translates directly into demand for contractors, skilled trades, and materials.
  • Improved Opportunity Zones: Enhancements to the OZ program will unlock new development in underserved and rural communities—delivering contracts, jobs, and infrastructure that benefit both local residents and the firms that build there.
  • Reduced Reporting Burdens: Raising the 1099-MISC threshold and repealing the expanded 1099-K rule reduces unnecessary red tape. Contractors should be on the job, not buried in compliance paperwork.