Tax partner, Jane Maddox, was recently featured in Construction News Review discussing how recent tax legislation is reshaping planning and investment decisions for construction firms.
With ongoing pressure from rising financing costs, project slowdowns and tighter margins, the latest tax changes arrive at a critical time for the industry. While much attention has focused on individual tax provisions, several components of the legislation directly impact construction businesses.
One of the most significant updates restores 100 percent bonus depreciation for qualifying assets placed in service after January 19, 2025.
“The full purchase price comes off in year one, with no expiration date attached,” Maddox notes.
Contract timing plays a key role in determining eligibility, particularly for assets ordered prior to January 20, 2025, which may still fall under the prior phase-down schedule.
The legislation also introduces a new category of qualified production property, allowing certain manufacturing-related facilities to be fully expensed in the year they are placed in service—potentially changing the financial outlook of large-scale construction projects.
Additionally, Section 179 expensing limits have more than doubled, increasing to $2.5 million and expanding planning opportunities for construction firms investing in equipment and infrastructure.
“Section 179 and bonus depreciation are similar but behave differently,” she explains, noting the importance of modeling both approaches—especially for multi-state operators navigating varying tax conformity rules.
Read the article to learn more about how these changes may impact construction firms: Tax Law Changed for Construction Firms: Here’s What Matters Now