At the top of the list are several long-term tax provisions that bring much-needed predictability to construction firms. The bill permanently extends individual tax rate reductions from the Tax Cuts and Jobs Act, ensuring that pass-through entities—like many small to mid-sized contractors—avoid looming tax hikes. Additionally, the estate tax exemption is locked in at $15 million and indexed to inflation, offering critical stability for family-owned firms navigating succession planning.

Major incentives for capital investment were also cemented. The 100% bonus depreciation provision is now permanent, allowing firms to fully deduct the cost of new and used equipment immediately—something that can significantly improve cash flow. Similarly, the Section 179 expensing limit for construction equipment has increased to $2.5 million with expanded phase-out thresholds. Combined, these changes are a green light for long-term investment in tools, machinery, and technology.

Construction firms that prioritize innovation also benefit: full expensing of research and development (R&D) costs—including tech like drones and BIM—is now a permanent feature of the tax code. For businesses organized as pass-throughs, the Qualified Business Income (QBI) deduction is also extended and increased, ensuring continued tax relief for partnerships, sole proprietors, and S-corporations.

There are notable workforce gains as well. Pell Grant eligibility is now expanded to include short-term training programs, helping contractors build talent pipelines through more accessible education and credentialing. Additional changes to multifamily construction tax treatment and $46 billion in infrastructure funding for border wall projects also add potential downstream benefits for firms engaged in housing, access roads, and logistics work.