With the recent passing of the One Big Beautiful Bill Act (H.R. 1), we wanted to share a quick summary of how this new legislation could impact your asphalt paving and construction site preparation businesses this year.
This bill is incentivizing an increased pipeline of future paving & construction work while offering powerful new financial incentives for contractors.
Key Financial Incentives:
- 100% Bonus Depreciation made permanent. You can now deduct 100% of the purchase price of qualifying new and used equipment from your 2025 taxes, providing a substantial cash-flow benefit.
- The Section 179 deduction limit has been increased to $2.5 million, with the spending cap raised to $4.0 million. This gives you more flexibility to write off the full cost of an asset in the year you buy it.
Provisions that will directly or indirectly benefit paving & site prep contractors:
- Accelerated Depreciation for Factory Construction
- Opportunity Zone Expansion: drives projects in underserved areas
- Immediate Expensing of Domestic R&D
- Pell Grant Expansion for Skilled Trades
- Full Deductibility for Qualified Production Property
- Permanent 20% QBI deduction (S corps & partnerships)
- EBITDA-based Business Interest Deduction
- Completed Contract Method (CCM): eligible for all residential construction
With a significant wave of incentivized projects on the horizon, having reliable and productive asphalt rollers and soil compactors in your fleet will be crucial to capitalizing on these opportunities.