Congress approves budget reconciliation legislation
The House and Senate approved the One Big Beautiful Bill Act, sweeping budget reconciliation legislation that contains the major components of President Trump’s domestic policy agenda, including tax, defense, border security, immigration and other provisions. The bill was approved on near party-line votes in both chambers of Congress, and now goes to the president, who is expected to sign it into law July 4.
This legislation includes numerous tax provisions beneficial to the roofing industry that NRCA has been advocating for during Roofing Day in D.C. for the past several years. Key provisions include:
- Section 199A Qualified Business Income deduction made permanent, providing lasting relief for pass-through businesses
- Estate tax exemption increased to $15 million and made permanent, protecting family businesses for future generations
- The top individual tax rate of 37% made permanent
- Restoration of the research and development deduction so businesses can immediately deduct the cost of their U.S.-based research and development investments
- 100% bonus depreciation restored to provide full expensing for investments in machines, equipment and vehicles
- The Section 179 cap on expensing for nonresidential real property raised from $1 million to $2.5 million
- Expansion of 529 tuition savings plans to include training and certification programs
- Expansion of the Pell Grant education program to include training and certification programs
- Section 111101 to allow taxpayers to deduct 100% of the cost of certain new factories, certain improvements to existing factories and certain other structures
These tax provisions are critical to providing certainty for businesses to continue to invest in their employees and grow their companies. In particular, the bill is a huge win for “main street,” family-owned, pass-through entities that represent 95% of all U.S. businesses and employ the majority of private-sector workers. Additionally, the inclusion of workforce training and certification programs in Section 529 educational savings plans and Pell Grants will help address future workforce needs and is a significant victory for recognition of roofing and other trades on par with four-year college degrees.
Tariff deadline approaches
As the deadline for implementation of higher reciprocal tariffs on numerous countries approaches July 9, President Trump has indicated he is not considering delaying the deadline and renewed recent threats to cut off trade negotiations with several countries because of lack of progress. Trump had initially announced the tariffs April 2 with an effective date of April 9 but then delayed implementation by 90 days while the administration entered into trade talks with various countries. Senior administration Economic Adviser Kevin Hassett has indicated numerous agreements with other countries designed to rebalance trade with the U.S. will be announced after July 4. An agreement with Vietnam has been concluded while tentative agreements with China and the United Kingdom have been announced but not yet finalized.
DHS terminates Temporary Protected Status for Haitians, but court temporarily blocks
On June 27, the Department of Homeland Security announced the termination of Temporary Protected Status for qualifying individuals from Haiti, estimated at about 500,000 individuals. The termination will take effect Sept. 2, which is now the date Employment Authorization Documents for Haitians with TPS will expire. In February, DHS had reduced the designation of TPS for Haiti from 18 months to 12 months. View more information. On July 1, a federal judge temporarily blocked this DHS action, ruling the agency exceeded its authority in terminating the status before the original designation until Feb. 3, 2026. This court injunction puts the termination on hold temporarily while litigation continues.
NRCA had requested guidance and transition assistance for employers from the Trump administration with respect to the many changes in immigration policy during recent months. Additionally, NRCA expects new legislation to provide a permanent solution for qualifying TPS workers and other individuals will be introduced in Congress in July.
Support ROOFPAC over drinks at NRCA’s Midyear Committee Meetings in Chicago
Join your roofing friends and colleagues for a lively cocktail reception benefiting ROOFPAC on Wednesday, July 16, from 5:30 to 7 p.m. at Siena Tavern in Chicago. Enjoy catching up with fellow industry professionals over tasty cocktails and Italian treats—all while strengthening the voice of the roofing industry on Capitol Hill ($175 per person/$275 per couple). Members of NRCA’s Political Insiders Council and Capitol Hill Club, along with their guests, receive complimentary admission. Special thanks to our sponsor Johns Manville for making this event possible. For more information or to register, please visit www.nrca.net/roofpac-midyear-event. For any questions or to secure the couples’ rate, contact Teri Dorn at (202) 510-0920 or tdorn@nrca.net.
