The tax landscape for construction contractors shifted dramatically in 2025, driven by the passage of the One Big Beautiful Bill Act (OBBBA). Signed into law in July, the OBBBA delivers major changes for the industry, including permanent 100% bonus depreciation, expanded Section 179 expensing, new industrial development incentives, and updated opportunity zone rules.
The changes mean great opportunities to enhance cash flow, accelerate deductions, and time capital investments – and changes to accounting methods, increased workforce compliance requirements, and evolving IRS guidance also raise the stakes.