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Washington Wire: Major Tax Bill Clears the House

Washington Wire: Major Tax Bill Clears the House

House Passes “One Big Beautiful Bill” – What It Means for Our Industry

On May 22, the House narrowly passed the “One Big Beautiful Bill,” a sweeping reconciliation package covering tax, energy, workforce, and trade policy.

While it’s early in the legislative process, the bill includes several key wins for our industry, along with a few concerns.

Industry Wins
The House version includes provisions NAED has long supported, giving our members more certainty to plan and invest:

  • Section 199A Deduction made permanent and increased to 23%
  • Estate Tax Exemption raised to $15M (individual) / $30M (joint), indexed for inflation
  • Bonus Depreciation restored to 100% for property purchased after Jan. 20, 2025, for five years
  • Section 179 Expensing increased to $2.5M
  • LIFO, SALT Deduction & 179D preserved
  • 529 Accounts can now be used for job training, certifications, and licensing, not just college

⚠️ What’s Scaled Back
Several clean energy tax credits were reduced or removed:

  • Section 25C – Home Improvement Energy Credit
  • Section 45L – New Home Energy Efficiency Credit
  • Section 45X – Advanced Manufacturing Production Credit

The bill also cuts funding for clean energy programs and adds restrictions on some foreign-made products, impacting the supply chain.

🧰 Workforce Development Win
The Freedom to Invest in Tomorrow’s Workforce Act was included, allowing 529 funds for credentials, licensing, and exam prep—helping more people enter skilled trades without student debt.

🔌 Energy Star Under Threat
The EPA may eliminate the Energy Star program for appliances. Though voluntary, it’s a trusted tool for consumers. NAED is working with NEMA and NECA to push back and protect access to reliable energy cost info.

📢 We Want Your Tariff Stories
Tariff swings have disrupted planning and slowed orders. If your company has been affected, we want to hear from you. Please send a short testimonial (3–4 paragraphs) to Bud DeFlaviis at bud@naed.org.

We’ll keep you updated as the Senate takes up its version of the bill. Thanks for staying engaged.

Read the Washington Wire Here

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