“One Big Beautiful Bill Act” Signed by President Trump

The House passed President Trump’s sweeping legislation, the Big Beautiful Bill Act on July 3, handing a major legislative victory to Speaker Mike Johnson (R-La.) and clearing the way for the President to sign it by his self-imposed July 4 deadline.

The Path to Passage:

The bill’s passage, on a razor-thin 218-214 vote, caps one of the most chaotic legislative pushes in recent memory. After days of infighting, floor standoffs, and direct engagement from Trump himself, House Republican leadership managed to flip dozens of skeptical lawmakers — including members of the House Freedom Caucus — without making a single change to the Senate-amended version of the bill.

Reps. Thomas Massie (Ky.) and Brian Fitzpatrick (Pa.) were the only Republicans to vote against the final package, joining all Democrats in opposition. Massie, after vacillating throughout the night, ultimately fell in line after other hardliners did the same. Fitzpatrick also opposed the rule that allowed debate on the bill to begin — the only Republican to do so.

 In the end, the journey was tortured, with GOP leaders holding two procedural votes open for a combined 14 hours overnight— including a record-setting seven-hour, 24-minute vote — as Speaker Johnson, Trump, and senior administration officials lobbied furious holdouts one by one.

The Politics:

The legislative win is being hailed by Republicans as a necessary correction after what they call “years of mismanagement” under President Biden. Democrats denounced the bill as a “cruel,” “disgusting” handout to billionaires, warning of devastating consequences for vulnerable Americans.

Minority Leader Hakeem Jeffries (D-N.Y.) set a new record with a nearly nine-hour floor speech to protest the legislation, but ultimately Democrats could only delay — not stop — the bill.

A Gamble for Johnson and the GOP:

Speaker Johnson, now 617 days into his tenure, staked his speakership on passing a single, all-encompassing reconciliation bill. Despite his relatively new status and lack of previous leadership experience, Johnson pushed ahead — refusing to allow changes to the Senate’s version – something our team would have been open to – and insisting on a final vote before July 4.

This strategy infuriated many rank-and-file Republicans, especially after the Senate’s version came back significantly altered. But Johnson's calm persistence and the backing of Trump proved enough. “He chooses a path and sticks to it,” one aide said. “That’s rare around here.”

NECA Note: Johnson is already eyeing two more reconciliation bills: one in the fall for the FY26 budget and another for FY27 before the end of the 119th Congress.

The Bottom Line:

The reconciliation bill defines the opening chapter of full GOP control in Washington. Trump, Johnson, and Senate Republicans bet that the package — with its broad tax cuts and symbolic spending priorities — gives Republicans something to tout at home. But the risk is steep: Democrats will hammer them for gutting Medicaid and SNAP.

Whether this gamble pays off won’t be known until the 2026 midterms, but for now, Speaker Johnson has delivered Trump’s “One Big Beautiful Bill” — and perhaps redefined his speakership in the process.

Summary of the NECA-related provisions:

Key Pro-Business Tax Provisions:

• Full Business Property Expensing (Section 70301) - Allows immediate 100% deduction of qualifying business equipment purchases, including electrical tools, testing equipment, transformers, and specialized machinery, rather than depreciating over multiple years
• Qualified Business Income Deduction (Section 70105) - Allows  20% deduction on qualified business income for partnerships, S-corporations, or sole proprietorships.
• Estate Tax (Section 70106) - Extends and enhances the current high estate and gift tax exemption to $15,000,000. 
• Enhanced Equipment Expensing Limits (Section 70306) - Increases dollar limitations for immediate expensing of depreciable business assets, benefiting smaller contractors who can now expense more costly electrical equipment immediately.
• Full R&D Expensing (Section 70302) - Provides immediate deduction for domestic research and experimental expenditures, benefiting contractors developing innovative electrical solutions or smart building technologies.
• Business Interest Deduction Improvements (Section 70303) - Modifies limitations on business interest deductions, allowing NECA members to deduct more financing costs for equipment purchases and facility expansion.
• Advanced Manufacturing Investment Credit Enhancement (Section 70308) - Strengthens credits for manufacturing electrical components or investing in advanced manufacturing equipment.
• Paid Family and Medical Leave Credit Extension (Section 70304) - Extends and enhances credits for NECA members providing family and medical leave benefits to employees
• Special Production Property Depreciation (Section 70307) - Creates special depreciation allowances for qualified production property used in electrical contracting operations.

IRA Tax Credits and Related Policy 

Excise Tax on Wind and Solar Projects Eliminated: In a win for the industry, the bill dropped a proposed tax on wind and solar infrastructure, which had been widely criticized by industry groups and clean energy advocates as a potential "killer" for the renewable energy sector. 

Energy Efficient Commercial Building Deduction (Section 70507) - Terminated the energy efficient commercial buildings deduction. Termination of 179D came as a surprise to the government affairs team, repeal of this provision eliminates tax incentives for commercial retrofitting and energy efficiency upgrade work. 

Advanced Manufacturing Production Tax Credit (Sect. 45X) - Credit remains in place for solar components. Credit will be phased out for critical minerals beginning in 2030 and will be terminated for wind components beginning on January 1, 2028.  

Zero-Emission Nuclear Power Production Credit (Sect. 45U) - Credit remains in place. 

Clean Fuel Production Tax Credit (Sect. 45Z) - Credit extended until 2029. 

Clean Electricity Production and Investment Tax Credits (Sect. 45Y and 48E) - Safe harbor for projects with a construction start date before June 30, 2026 days and in service before 2030. Projects that do not begin construction before June 30, 2026 will only be eligible if they are bought online before 2027. 

Clean Hydrogen Production Tax Credit (Sect. 45V) - Terminated on January 1, 2028. 

The following residential tax credits for energy efficiency and clean energy would generally expire if not placed in service by December 31, 2025:

Energy Efficient Home Improvement Credit (Sect. 25C)

Residential Clean Energy Credit (Sect. 25D)

New Energy Efficient Home Credit (Sect. 45L)

The following credits related to clean vehicles would generally expire within one year:

Clean Vehicle Credit (Sect. 30D) - Must be acquired by September 30, 2025

Previously-Owned Clean Vehicles Credit (Sect. 25E) - Must be acquired by September 30, 2025

Alternative Fuel Vehicle Refueling Property Credit (Sect. 30C) - June 30, 2026

Qualified Commercial Clean Vehicles Credit (Sect. 45W) - Terminated September 30, 2025

Thank you!

Thanks to our membership for your support over the two-plus years our team took in preparation for this moment. It involved hundreds, if not thousands of meetings, coalition calls, informational events, and more. Several of our contractors around the country participated in NECA-hosted 199A roundtable sessions to advocate for S-Corp rate deduction permanency and not doubt it helped move the needle.

The work continues. We have permitting modernization, retainage reform, highway bill reauthorization and that small matter of getting the government funded for FY 2026 to look forward to as we continue work through the summer and beyond.