SMACNA is encouraging members to urge their lawmakers to expedite Senate passage of H.R. 7024, the "Tax Relief for America's Families and Workers Act."
Currently, SMACNA contractors are working and bidding on the largest projects in the nation; we are now in a stronger position to overcome operational obstacles due to the lapse or reduced value of three key provisions in the tax code directly impacting purchases of advanced technological equipment.
These critical tax incentives are of vital importance to the nation's building and construction industry today and in the future:
- Retroactive Extension of the 100% Bonus Depreciation – Restores the 100% bonus depreciation for qualified property instead of the current 20% annual phase-down that went into effect on January 1, 2023.
- Retroactive Extension and Permanence for 174 Research and Development Expenditures - Allows companies to immediately deduct R&D expenses instead of amortizing over five years.
- Expand Section 179 expensing and interest deductibility for small businesses—Increases the maximum eligible investment amount and extends the point at which the benefit phases out.
Why Your Action is Critical Now
Our industry has witnessed unprecedented growth in the wake of the Infrastructure Act, CHIPS and Science Act, and the Inflation Reduction Act. The introduction of significant policy changes has spurred the development of vital projects, from CHIPS plants to energy-efficient facilities. To continue this momentum, we must secure the renewal and extension of key tax incentives: the R&D credits, 100% bonus depreciation, and Section 179 equipment expensing reform.
How You Can Make a Difference
Take Immediate Action: Visit SMACNA's eAdvocacy page.
Voice Your Support: Once there, log in by entering the email address you use for SMACNA-related business on the right-hand side of the page. Next, click the blue "Take Action" button on either the top or bottom of the page. You will be directed to a customizable letter template. Please take a moment to personalize this letter, reinforcing the importance of these measures to our industry.
Submit Your Letter:
After editing, click the blue "Go" button at the bottom of the page to send your letter to your Senator.
Your Voice Matters
The passage of H.R. 7024 is crucial for our industry. By restoring the 100% bonus depreciation, extending R&D expense deductions, and enhancing Section 179 expensing, we can alleviate operational challenges and continue contributing to the nation's robust construction sector.
Your participation is vital in this effort. If you have any questions or need further assistance, please do not hesitate to contact SMACNA's Capitol Hill team at advocacy@smacna.org.
