One Big Beautiful Bill Passes - What it Means for PHC Contractors

WASHINGTON, DC — On July 4, President Donald Trump officially signed the One Big Beautiful Bill Act into law. The Act is a gigantic package of legislation—over 1,000 pages long, containing hundreds of provisions—centered around Trump and the Republican Party’s main domestic priorities.

The Act represents a significant re-working of federal tax policy. It makes the 2017 tax cuts (enacted in Trump’s first term) permanent, preventing what would have been a significant increase in 2025. It raises the cap on state and local tax deductions to $40,000 for taxpayers making less than $500,000 a year.

The Act also includes temporary tax deductions for tips, overtime pay, and auto loans. On the flip side of the tax coin, the Act phases out some Biden-era clean energy tax breaks.

The other big story surrounding the Act involves deep cuts to social services. The nonpartisan Congressional Budget Office estimates that the bill will cut federal spending on Medicaid and Children’s Health Insurance Program (CHIP) benefits by $1.02 trillion (due in part to eliminating at least 10.5 million people from the programs) over the next decade.

Yet despite those significant cuts, CBO also estimates the One Big Beautiful Bill Act will add $2.8 trillion to the federal deficit by 2034.

Industry Reactions

PHCC

Mark Valentini, the PHCC’s Vice President of Legislative Affairs, was on the whole pleased with the passage of the Act, as it addressed several of the Association’s tax and workforce development concerns.

“The Big Beautiful Bill is indeed a win for PHCC,” Valentini said. “Tax provisions under the Tax Cuts and Jobs Act of 2017 such as elevated estate tax thresholds, full expensing of newly acquired equipment under bonus depreciation, and deductions up to 20% on qualified business income have all been made permanent. Pell Grants will now be eligible for short-term job training which will benefit those seeking careers in HVAC via community colleges and vocational education programs.

“Unfortunately,” he continued, “tax incentives for energy efficiency upgrades to residential and commercial buildings are slated to sunset at the end of the year. Otherwise, this legislation is a net positive for plumbing and HVAC contractors.”

Associated Builders and Contractors

ABC issued a statement celebrating the passage of the One Big Beautiful Bill Act, calling it “historic” tax relief for the construction industry.

“On this July 4, ABC celebrates Congress and the White House working together to bring this pro-growth tax reform to reality for the millions of hardworking Americans who build and power our economy,” Kristen Swearingen, ABC Vice President of Government Affairs said. “This new law provides long-overdue tax certainty that empowers construction businesses to invest in their workforce, expand operations and keep America building.

“Now that this critical legislation has been signed, we urge Congress and the administration to build on this momentum by enacting additional reforms to reduce regulatory burdens on businesses. Smart, targeted regulatory relief will give contractors even greater ability to create jobs, strengthen their communities and drive economic growth nationwide.”

United Association

The United Association of Union Plumbers and Pipefitters released a statement from General President Mark McManus decrying the passage of the bill, saying the Act would hurt working families and kill good-paying jobs. 

“President Trump and Congressional Republicans were elected on the promise of cutting costs and creating opportunities for working class families. Their signature piece of legislation betrays that promise,” McManus said. “With dangerous cuts to the energy sector and a major dismantling of the historic infrastructure funding passed during the previous administration, this bill will kill jobs and make it harder for working families like ours to make ends meet…

“The entire United Association urges President Trump and Congressional Republicans to listen to the vast majority of Americans who want opportunities to succeed, who want to see costs come down, and who want their elected officials to put them first.”

McManus in the statement also thanked UA members who lobbied their Senators and Representatives to help secure labor protections and limit reductions in green energy projects.