House Ways and Means Committee passes tax reform bill
On May 14, the House Ways and Means Committee passed a tax reform bill that addresses several key NRCA and Roofing Day in D.C. priorities. On balance, the bill is extremely positive for the roofing industry, including increasing the 199A Qualified Business Income Deduction and estate tax exemption while making both provisions permanent. NRCA released a statement in support of the legislation and also joined more than 90 members of the Main Street Employers Coalition to praise the bill. This legislation likely will undergo changes in its current form before it becomes law.
Key provisions include:
- Section 199A deduction increased from 20% to 23% and made permanent, providing lasting relief for pass-through businesses
- Estate tax exemption increased to $15 million and made permanent, protecting family businesses from generation to generation
- Restoration of research and development deduction so businesses can immediately deduct the cost of their U.S.-based research and development investments
- 100% bonus depreciation that restores full and immediate expensing for investments in machines, equipment and vehicles
- Section 179 cap on expensing for nonresidential real property raised from $1 million to $2.5 million
- Expanding 529 program to include training and credentialing
- New provision to allow taxpayers to deduct 100% of the cost of certain new factories, certain improvements to existing factories and certain other structures (for projects started after Dec. 31, 2024, and before Jan. 1, 2030)
- Terminating section 25D, residential solar tax credits at the end of this year instead of its original end date of Dec. 31, 2034. However, utility-scale solar’s tax credits remain in place through 2028 before a phase-down to zero in 2032.
- Terminating the New Energy Efficient Home Credit (45L) for homes acquired after Dec. 31, 2025 (or Dec. 31, 2026, if construction began before May 12, 2025)
President Trump announces trade deal progress with China
On May 12, President Trump announced a trade agreement with China to lower tariffs and expand market access for U.S. exports. Both countries will reduce tariffs by 115% while maintaining a 10% baseline tariff. These changes took effect May 14.
China will eliminate retaliatory tariffs and non-tariff measures imposed since early April, including suspending its 34% tariff for 90 days while keeping a 10% tariff during that period. The U.S. will lift tariffs imposed on China April 8 and 9 but will maintain earlier duties, including Section 301, Section 232, fentanyl-related and Most-Favored Nation tariffs. The U.S. also will suspend its 34% reciprocal tariff for 90 days, retaining a 10% tariff.
NRCA joins roundtable with Majority Whip Emmer and Chairman Williams
On May 7, NRCA was pleased to join small-business stakeholders in a productive discussion led by Majority Whip Tom Emmer (R-Minn.) and Chairman of the House Small Business Committee Roger Williams (R-Texas) to discuss the House’s commitment to supporting small businesses across the U.S. The roundtable coincided with National Small Business Week, which recognizes the investment, hard work and determination of U.S. small-business owners and celebrates the major role they play in the U.S. economy.
Emmer and Williams were joined by Reps. Pete Stauber (R-Minn.), Mark Alford (R-Mo.), Troy Downing (R-Mont.), Brian Jack (R-Ga.), Nick LaLota (R-N.Y.), Dan Meuser (R-Pa.) and Derek Schmidt (R-Kan.).
Members of Congress heard stakeholder perspectives from additional representatives from the Asian American Hotel Owners Association, International Council of Shopping Centers, International Franchise Association, Intuit, National Association of Home Builders, National Association of REALTORS, National Federation of Independent Business, National Grocers Association, Small Business and Entrepreneurship Council, and Small Business Investor Alliance. Minnesota small-business leader and CEO of Lorenz Bus Service Mike Canine also participated in the discussion.
Nearly 80 representatives send letter in support of Perkins CTE state grants
On April 30, leaders of the House Career and Technical Education Caucus, Rep. Glenn “G.T.” Thompson (R-Pa.) and Rep. Suzanne Bonamici (D-Ore.), sent a letter to the Appropriations Committee to request increased funding for the Carl D. Perkins Career and Technical Education Act (Perkins) in the fiscal year 2026 Labor, Health and Human Services, and Education Appropriations bill. Increased funding for Perkins CTE grants is a key NRCA priority and longtime focus of Roofing Day in D.C. NRCA was proud to help gather support for this effort.
