ABC Supports One, Big, Beautiful Bill as Senate Kicks off Vote-a-Rama:

On June 30, the U.S. Senate began deliberations on their version of the One, Big, Beautiful Bill Act after passing a key procedural vote this past weekend. On June 27, ABC sent a Key Vote letter to the U.S. House and Senate, urging members of Congress to support the bill which includes key tax relief for contractors. ABC also joined a group of organizations representing millions of Main Street businesses in a June 28 letter expressing strong support of the package. ABC supported provisions of the OBBB would:

• Make the Small Business Deduction Permanent
• Provide Permanent Estate Tax Relief
• Restore 100% Bonus Depreciation
• Revive Expensing of R&D Costs
• Eliminate tax on Overtime for American Workers
• Expand 529 Accounts for Skilled Trades Training

The Motion to Proceed to debate the bill on the Senate floor passed in a 51-49 vote, with Senators Thom Tillis, R-N.C. and Rand Paul, R-Ky., voting against the measure. The bill is now in its early stages of a series of votes nicknamed “vote-a-rama,” where the Senate will consider any number of amendments to the package, a process expected to take several hours. Keep in mind, under Senate rules, reconciliation bills can pass the Senate with a simple majority, overriding Senate filibuster rules that typically require a 60-vote supermajority. Republicans currently hold a 53-47 majority in the Senate, but Tillis and Paul are both unlikely to change their minds on Trump’s key agenda item, leaving Senate Majority Leader John Thune, R-S.D., with a slim margin to pass the package. A third GOP defector would force Vice President JD Vance to break the tie, while a fourth would kill the bill all together.

If the Senate approves the package, it will head back to the House where Speaker Mike Johnson, R-La., will face yet another challenge in corralling his Conference. Notably, the House passed their version of the OBBB at the end of May in a slim 215-214-1 vote. The Senate’s version now includes steeper cuts to Medicaid and a phase out of the $40,000 state and local tax deduction cap, not to mention an $800 billion increase to the deficit. These present a clear and present threat to Johnson’s hopes of getting the package through the Chamber and to the president’s desk ahead of their July 4 deadline.

On May 22, the U.S. House passed their budget reconciliation bill, H.R. 1, the “One, Big, Beautiful Bill Act,” in a 215-214-1 vote. Reps. Thomas Massie, R-Ky., and Warren Davidson, R-Ohio were the only Republicans to vote against the measure, while House Freedom Caucus Chair Andy Harris, R-Md., voted present.

Ahead of the vote, ABC sent a Key Vote letter expressing strong support for the bill that provides critical tax relief to contractors. Among the many essential reforms in the package, ABC particularly supports:

• Making the Small Business Deduction Permanent and Stronger: The bill provides the pass-through sector crucial relief via introduction of a boosted 23% deduction for qualified business income. Locking in the higher deduction under Section 199A will not only prevent a significant tax hike in 2026, but it will also ensure that ABC members—most of whom are passthrough businesses—can reinvest in their companies, expand their workforce, and take on new projects without fear of future tax hikes.

• Permanent Estate Tax Relief: The bill preserves and protects family businesses from destructive estate taxes keeps jobs, skills, and ownership here at home, allowing contractors to pass on the businesses they built to the next generation.

• Restoration of 100% Bonus Depreciation: Renewing previously expired immediate expensing via 100% bonus depreciation is a powerful incentive for businesses to invest in new equipment and technologies. This policy was based on the understanding that allowing immediate expensing of capital investments would encourage businesses to modernize their operations, increase productivity and, ultimately, drive economic growth. It was particularly aimed at capital-intensive industries like construction, where equipment investments can be substantial.

• Revived Expensing of R&D Costs: This provision permanently allows taxpayers to immediately deduct domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2024. Additionally, small business taxpayers with average annual gross receipts of $31 million or less will generally be permitted to apply this change retroactively to taxable years beginning after December 31, 2021. Furthermore, all taxpayers that made domestic research or experimental expenditures after December 31, 2021, and before January 1, 2025, will be permitted to elect to accelerate the remaining deductions for such expenditures over a one-year period or a two-year period.

• Continuation of Simplified Tax Code: The bill permanently extends the larger standard deduction and the alternative minimum tax threshold that were set to expire. These two provisions have greatly simplified the tax code for millions of taxpayers, including construction workers and job creators.

• No Tax on Overtime for American Workers: By exempting overtime pay from federal income tax, the bill delivers direct, meaningful tax relief to the hardworking men and women in the merit shop construction trades—rewarding those who put in the extra hours to get the job done, support their families, and keep America building.

• Expanded 529 Accounts for Skilled Trades Training: By expanding 529 savings accounts to cover training programs and credentials in the skilled trades, the bill supports the next generation of craft professionals—ensuring more young Americans can pursue rewarding careers in construction without crushing debt.

• Relief from Overregulation and Red Tape: From the inclusion of the ABC-supported REINS Act to reducing 1099 reporting burdens to improving Opportunity Zones, this bill cuts unnecessary red tape and unlocks new growth in communities that need it most.

• Expedited Environmental Reviews: By paying 125% of the estimated cost to prepare or supervise the preparation of an Environmental Assessment or Environmental Impact Statement, a project sponsor would receive a deadline of six months for completing an EA and twelve months for completing an EIS along with protection from judicial and administrative reviews.

House leadership’s Managers Amendment added last-minute changes to the legislation ahead of floor consideration, including:

• Lifting the state and local tax deduction cap to $40,000 for individuals making under $500,000.
• The accelerated phasing out of certain IRA clean energy credits by 2028. There will be much debate over this item in the Senate, including the prevailing wage and apprenticeship requirements.

The House-passed bill now heads to the Senate, where it is likely to be amended. Given the bill’s privilege under reconciliation rules, the Senate will only need a simple majority to approve their version bill. Both chambers will have to pass the same bill in order to send it to the President’s desk.

On Dec. 11, in a win for ABC and its members, the U.S. Senate rejected the confirmation of Lauren McFerran for a third term as chair of the National Labor Relations Board in a 49-50 vote. Her nomination threatened Democratic control of the NLRB through August 2026, two years into President-elect Donald Trump’s term. On Dec. 10, ABC sent a Key Vote letter to U.S. Senators urging them to vote “No” on her nomination

In an ABC statement, Kristen Swearingen, ABC vice president of legislative & political affairs, stated, “Under McFerran’s leadership, the NLRB has issued decisions and expanded interpretations of the National Labor Relations Act that have been rejected by the business community, Congress and federal courts.” In a statement released by the ABC-led Coalition for a Democratic Workplace, Swearingen added, “Her confirmation would have blocked President-Elect Trump from pursuing his policy agenda – an agenda that the voters resoundingly supported in the election.”

 On Dec. 3, the CDW sent a letter signed by 53 organizations to the U.S. Senate expressing concerns with her tenure. ABC members from around the country sent Action Alerts to their senators urging them to vote “No” on her confirmation.

On Dec. 5, in a 208-196 vote, the U.S. House of Representatives passed H.R. 7198, the Prove It Act of 2024. Ahead of the vote, ABC sent a key vote letter to members of the House urging them to support the bill. The Prove It Act strengthens the Regulatory Flexibility Act by allowing industry groups, like ABC, to petition the Small Business Administration to examine whether a federal regulation would have significant economic effects on a large number of small businesses. Agencies are not required to perform a regulatory flexibility analysis if they certify that a proposed rule would not have a significant economic impact on a substantial number of small entities. The Prove It Act would allow groups like ABC to petition the SBA to challenge an agency’s claim and request an analysis if they see fit. In addition, there is a provision in the bill that would allow the SBA’s Office of Advocacy to throw out rules if the issuing agency doesn’t reevaluate them at least once a decade to assess their continued need, complexity, and economic effects on small businesses.

ABC supported this legislation along with other Regulatory Flexibility Act related bills during the September House Small Business Committee markup.

On March 6, ABC sent a key vote letter to the U.S. Senate urging Senators to support the U.S. House of Representatives-passed H.J. Res. 98, Joint Employer CRA resolution of disapproval. If enacted, H.J. Res. 98 would not only prevent the rule from going into effect but would also prohibit a similar rule from being issued in the future.

In October 2023, the National Labor Relations Board released their ABC-opposed joint employer final rule. The final rule rescinds and replaces the ABC-supported 2020 NLRB joint employer final rule, which provided clear criteria for companies to apply when determining their joint employer status. ABC believes the new joint employer final rule will drastically alter existing contractor and subcontractor relationships in the construction industry, implementing a harsh new standard that will complicate this long-standing business arrangement and hit many smaller contractors with unsustainable legal and compliance costs.

On Jan. 12, the House passed H.J. Res 98 in a 206-177 vote, with 8 Democrats supporting. The resolution faces a more uncertain path in the Senate where a simple majority is needed to pass. Although President Biden has vowed to veto the resolution, passage in the House and Senate would send a strong message to the administration as they continue to implement harmful labor policies.

This week, the House will vote on H.J. Res. 98, a resolution to block the National Labor Relations Board’s new joint employer rule. ABC issued a key vote in support of the resolution and against the new rule that has faced opposition from ABC and a number of the nation’s major business groups.

The final rule, set to take effect in February, rescinds and replaces the ABC-supported 2020 NLRB joint employer final rule, which provided clear criteria for companies to apply when determining their joint employer status, and will disrupt existing contractor and subcontractor relationships throughout the construction industry. The resolution is expected to pass the House with at least some bipartisan support and Sens. Bill Cassidy, R-La., and Joe Manchin, D-W.Va., have been leading the effort to defeat the NLRB rule in the upper chamber.

On April 18, the U.S. House of Representatives will vote to override President Joe Biden’s veto of H.J. Res. 27, a joint resolution of disapproval under the Congressional Review Act of the Environmental Protection Agency and the Army Corps of Engineers’ 2023 revised Waters of the United States regulation. ABC has key voted today’s vote and issued an action alert.

President Biden vetoed H.J. Res. 27, which passed both chambers of Congress with strong bipartisan support. While the override is unlikely to garner the 2/3 vote of the chamber required, this resolution rebukes the Biden administration’s flawed, burdensome and overreaching WOTUS rule that will result in sweeping changes to the federal government’s authority to regulate what is considered a navigable water, with enormous impacts on small businesses, developers and contractors. The Biden WOTUS rule is set to cause building delays due to regulatory uncertainty, increased permitting and mitigation costs, and make it more difficult and expensive to grow food, produce energy and build critical infrastructure for the 21st century.

On March 29, ABC sent a key vote letter to the House supporting H.R. 1, the Lower Energy Costs Act. H.R. 1 is top priority legislation for the 118th Congress and contains several permitting reform provisions, including the ABC-supported BUILDER Act, which will go a long way toward eliminating unnecessary delays that cause budget overruns in construction. The BUILDER Act codifies key elements of the One Federal Decision Framework, including development by the lead agency of a joint schedule; procedures to elevate delays or disputes; preparation of a single environmental impact statement; and joint Record of Decision—all to the extent practicable, set, reasonable time limits are imposed for environmental reviews and establish reasonable page limits for environmental documents. Additionally, the energy and commerce division of H.R. 1 focuses on expanding American energy production potential by repealing the natural gas tax and the green bank provisions of the reckless tax and spend Inflation Reduction Act.

ABC also issued an action alert in support of the bill.

On March 9, the House passed H.J. Res. 27, a joint resolution of disapproval under the Congressional Review Act of the Environmental Protection Agency and the Army Corps of Engineers 2023 revised Waters of the United States regulation. ABC key voted the resolution which passed by a bipartisan 227-198 vote, with nine Democrats joining Republicans in support and only one Republican, Rep. Brian Fitzpatrick of Pennsylvania, opposing.

The Biden Administration’s flawed, burdensome, and overreaching WOTUS rule will result in sweeping changes to the federal government’s authority to regulate what is considered a navigable water, with enormous impacts on small businesses, developers and contractors. The rule will cause building delays due to regulatory uncertainty, plus increased permitting and mitigation costs.