Inside Washington: May 2025

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Tax Reform: The Latest on the 'Big, Beautiful' Bill

Plugged into Policy: Understanding the Latest Tariff Adjustments

NECA Legislative Conference 2025: Advocacy, Action, and a Path Forward

Wired for Influence: The Members Powering NECA's Political Impact

NECA NextGen Fly-In: The Future of Advocacy Starts Here!

Tax Reform: The Latest on the 'Big, Beautiful' Bill

At precisely 8:00AM ET on the morning of May 14, 17-Hours and 30-Minutes after gavel-in, the House Ways and Means Committee reported the Republican tax bill out of committee. The final bill includes permanent extensions of 2017 Tax Cuts and Jobs Act (TCJA) provisions, new tax exclusions for overtime/tips, and adjustments to state and local tax (SALT) deductions Democrats filed 38 amendments, all of which were rejected along party lines.

In Congress you rarely get everything you want but we at the GA team think this package is pretty close. Speaker Johnson still has major issues to solve before the One, Big, Beautiful Bill is floor ready. The most pressing problem for the Speaker is SALT Caucus Republicans who are threatening to tank over the $30k SALT deduction which they deem an “unserious” number.

Click here to read the full section by section.

Click here to read NECA's statement on the bill.

Key Provisions and Impact on NECA Members:

Section 199A Qualified Business Income (QBI) Deduction

• Provision:
  • Increases the QBI deduction for pass-through entities (such as S-corporations, partnerships, and sole proprietorships) from 20% to 23% and makes it permanent
• Impact:
  • Provides substantial, permanent tax relief for the many NECA member companies structured as pass-throughs
  • Increases after-tax cash flow, enabling greater investment in workforce training, equipment, and business expansion
  • Offers long-term certainty for business planning and succession
  • 199A in particular represents a massive win for the government affairs team as we were able to secure an increase of the provision to 23% instead of a flat extension of the 20% rate.

The GA team would like to extend a big thank you to NECA members who participated in roundtables in-district and our fly-in participants; your advocacy efforts paid off!

Estate and Gift Tax Exemption

• Provision:
  • Permanently increases the estate and gift tax exemption to $15 million per individual (indexed for inflation), up from the prior $10 million (also indexed).
• Impact:
  • Eases generational transfers for family-owned electrical contracting businesses.
  • Reduces the risk of disruptive tax liabilities during business succession, supporting continuity and long-term planning.

100% Bonus Depreciation & Section 179 Expensing

• Provision:
  • Restores and makes permanent 100% bonus depreciation for qualifying property and increases the Section 179 expensing limit from $1 million to $2.5 million.
• Impact:
  • Allows immediate expensing of investments in machinery, vehicles, tools, and facility upgrades.
  • Improves cash flow and incentivizes modernization and adoption of new technologies.
  • Supports competitiveness in a rapidly evolving construction and energy sector.

Individual Income Tax Rates

• Provision:
  • Makes permanent the TCJA’s lower individual income tax rates, including the top rate of 37%, and maintains the current bracket structure
• Impact:
  • Provides continued tax relief for NECA members filing as individuals or pass-through entities.
  • Enhances certainty for tax planning and personal income management.

Standard Deduction

• Provision:
  • Permanently doubles the standard deduction (as established by the TCJA) and provides an additional increase for 2025–2028 ($2,000 for joint filers, $1,500 for heads of household, $1,000 for singles
• Impact:
  • Simplifies tax filing for owners and employees who do not itemize.
  • Increases after-tax income for many in the electrical contracting workforce.

Alternative Minimum Tax (AMT) Relief

• Provision:
  • Permanently increases the AMT exemption and phase-out thresholds, as established by the TCJA
• Impact:
  • Reduces the risk of unexpected AMT liability for NECA members and business owners.

The Road Ahead

Next week the House Rules Committee will draft the full package reported from the Budget Committee to prepare the legislation for floor introduction. This will likely happen the week of May 19, and the Rules Committee will need around 48 hours,

Potential House Floor Vote on May 21st or 22nd. Once it passes the House, it will then move on to the Senate.

What We're Doing

The Government Affairs team is now turning our attention to the Senate. We’ll spend the next few weeks pounding the pavement ensuring pro NECA provisions remain in the bill’s text. Please don’t hesitate to reach out if you have questions or concerns.

Plugged into Policy: Understanding the Latest Tariff Adjustments

President Trump has announced a 90-day pause on all reciprocal tariffs on China, effective immediately. This pause is meant to provide the time needed to negotiate a new deal and comes after recent conversations between U.S. officials and China on existing trade barriers.

As part of the pause, tariffs on China have been reduced to 30 percent, reflecting the combination of the 10 percent baseline tariff now applied to most countries, plus an additional 20 percent penalty on China already in place relating to China’s failure to address their role in the fentanyl trafficking.

This temporary shift comes on the heels of the broader “Liberation Day” policy, which imposed a ten percent reciprocal tariff on nearly all imports. While the policy remains in place for most countries, Canada and Mexico continue to operate under the USMCA framework and are exempt.

We do note that the existing exemptions from the original Executive Order are still intact, including on copper and certain critical minerals, thanks to our collective advocacy efforts, in partnership with industry allies, to protect materials essential to our work and supply chains.

NECA Next Steps:

In order to effectively advocate for our industry, the Government Affairs team is currently seeking input on potential and current tariff impacts. There is currently no formal exemption or exclusion procedure in place at USTR, nor has there been indications there will be one. This is intended to provide our team with a ready-to-go list in the event a formal process is announced, as well as to provide the Administration with information on impacts to our members.

If you have specific materials or products you would like us to consider, please contact us at [email protected] with the following information:

• Product or material name
• Harmonized Tariff Schedule Code (Schedule B number), if applicable or known
• Country of origin
• Any relevant details or context that would support our advocacy efforts on your behalf
• The impact the current tariff on this product has on your business, employees, customer relations, or ability to operate effectively. 

Your input is greatly appreciated and will help us effectively represent your interests.

NECA Legislative Conference 2025: Advocacy, Action, and a Path Forward

From April 28–30, 2025, Washington, D.C. became the epicenter of electrical industry advocacy as NECA hosted its annual Legislative Conference. With record-breaking attendance, NECA contractors and chapter leaders from across the country gathered to engage directly with lawmakers, hear from high-profile speakers, and advocate for critical legislative priorities shaping the future of the electrical construction industry.

Legislative Conference Photo		Wisconsin Chapter Contractors pause for a photo with Rep. Tony Wied (R-WI)

A Growing Voice on Capitol Hill

This year’s conference underscored the importance of face-to-face engagement with Congress. NECA's Government Affairs team facilitated over 200 meetings between member contractors and elected officials, enabling participants to champion policies supporting job creation, energy independence, and infrastructure investment.

If you really want to understand how this country works, you've got to come here and be part of the process. -Phillip Rose of Roman Electric Co.

Timely Legislative Priorirites

Attendees were well-prepared to discuss NECA’s 2025 “Legislative Asks,” which focused on three key areas:

• Tax Reform: Advocating for a reconciliation package that strengthens the tax code to support small businesses and economic growth. This topic was supported by a panel of association tax experts led by NECA Director of Government Affairs James Payne.
• Energy Independence: Supporting comprehensive energy policies that enhance domestic production and modernize the power grid.
• Infrastructure Investment: Promoting legislation that bolsters the nation’s critical infrastructure and expands access to necessary resources.

We're here with pragmatic solutions and asks... we all want to get back on that construction site and keep them going. -David Boddy of INTREN/MasTec

New York Contractors discuss NECA’s legislative priorities with Rep. Nicole Malliotakis (R-NY)		Marco Giamberardino and Rep. Rob Bresnahan (R-PA) engage in a fireside chat

Insightful Conversations and Powerful Speakers

The conference kicked off with a dynamic fireside chat between Congressman Rob Bresnahan and NECA SVP of Government and Public Affairs Marco Giamberardino. Their discussion touched on Bresnahan’s unique transition from electrical contracting to legislative work, highlighting the value of skilled labor in shaping sound policy.

Other distinguished speakers included Representatives Lisa McClain, Troy Balderson, Greg Stanton, Linda Sanchez, and Brendan Boyle. Each emphasized the role of skilled trades in the American economy and voiced strong support for legislative initiatives that promote job creation and infrastructure development.

Department of Labor Secretary Lori Chavez-DeRemer reinforced the administration’s commitment to worker protections and apprenticeship programs, stating the need to “modernize the workforce” and strengthen Registered Apprenticeships.

Industry Momentum and Innovation

NECA CEO David Long delivered inspiring remarks on the state of the industry and announced an exciting partnership with Google. The tech giant will support the electrical training ALLIANCE in integrating AI tools into its curriculum—aiming to train 100,000 electrical workers and 30,000 new apprentices nationwide.

What we're looking for as NECA contractors is just getting the work out there and allowing us to do our jobs... you actually feel like you're making a difference. -John Desens of Westphal & Company Inc.

To see more photos from this year’s Legislative Conference, visit the NECA Flickr Page.

To learn more about NECA’s Government Affairs initiatives, visit https://www.necanet.org/advocacy.

Wired for Influence: The Members Powering NECA's Political Impact

We'd like to extend a very special thank you to the following PLCs who renewed their NECAPAC contributions

• Robert Davies, Jr. – Davies Electric Co.
• Brent Fatzinger – Abbott Electric
• Stephen Green – Task Electric
• Todd Grossweiler – Allison Smith
• Mark Huston – Lone Star Electric
• David Long – NECA
• Tom Morton – L.L.D. Electric Co.
• Greg Rick - Rick Electric Co.
• Evan Rogers – Chewning & Wilmer
• Travis Sharp – Madsen Electric
• Rob Smith – Sargent Electric Co.
• Marc Tower – Citadel Electric
• Jason Walden – Greater Cleveland & North Central Ohio Chapter NECA

We'd also like to recognize Marvin Nelson of Nelson Electric and Frank Schetter of Schetter Electric LLC on 10 years of PLC membership! Their ongoing commitment has helped ensure the growth and stability of NECAPAC and has helped us get to where we are today.

Congratulations to the following Chapters who have reached their 2025 PLC Chapter Goal:

• Monterey Bay Chapter NECA
• Puget Sound Chapter NECA
• San Diego Chapter NECA
• Southern Sierras Chapter NECA

NECA NextGen Fly-In: The Future of Advocacy Starts Here!

Calling all emerging leaders! NECA’s NextGen Fly-In is your chance to step into the spotlight and take your voice to Capitol Hill. Join fellow rising professionals in Washington, D.C. for hands-on advocacy training, high-impact meetings with lawmakers, and a front-row seat to the legislative process that shapes our industry.

July 21-22, 2025 | Washington, D.C. REGISTER NOW!

Have questions or know someone interested in attending? Contact Seth Guidry at [email protected] or 985-637-1535.