Election Offers New Challenges And Opportunities For SMACNA
With the election behind us, we can visualize the outlines of what can be expected in the next Congress for SMACNA’s priority issues. We know the White House will flip back to Republican control and a new agenda will soon be on display offering challenges, but also legislative and regulatory opportunities.
While Washington awaits many more cabinet appointments and the sometimes-challenging confirmation process, many changes are expected as Congress organizes into a new committee leadership structure, which will control the legislative process for the next two years.
The White House Agenda on Key Industry Issues
The White House policies on taxes, trade, energy, housing and the workforce have the potential to shape the industry’s direction if Congress agrees to pass them to the President’s desk. Let’s take a closer look.
Taxes
The Trump transition team has advocated making a 20% corporate rate, a 15% rate for companies that build their products in the U.S. and other TCJA provisions, some of which expire at the end of next year, permanent. SMACNA advocates no less than the big three priority tax provisions: permanent extension of the bonus depreciation, R&Dcredits and equipment expensing incentives
Infrastructure
Most of the $1.3 trillion infrastructure program has been committed and/or presented to local and state governments with prevailing wage and registered apprenticeship language included. These funds cannot be reprogramed or rescinded, so should largely be safe from political games and policy retribution efforts starting in January. The bipartisan funding was distributed to mostly red congressional areas, with funding even more popular now than when passed.
Project Labor Agreements
All PLAs signed and in process will be honored and will continue to move forward.
Tariffs
Trump’s policy team has proposed increases in tariffs on imported products and components used in U.S. manufacturing, plus an additional tariff on goods from China. These tariff proposals are being discussed on Capitol Hill by both sides.
The Remaining Work of the 118th Congress
All the politically conflicted activity we witnessed this year produced the fewest number of laws enacted in a century. Although we have gotten a lot passed into law (Airport Infrastructure / Nuclear Power Financing-Permitting Reform / PLA Reform), we have a few major issues awaiting action to close the books on the 118th Congress:
• Endorse Extension of R&D Tax Credit AND Section 179
• Promote the Change Order Reform / Small Business Payment for Performance Act
• Advocate for The SAFE Banking Act
Commercial Building Conversion Tax Credits
As we continue to remain heavily engaged in legislative, political and regulatory advocacy, keep your eye on these emerging SMACNA issues of great significance to our industry that are now before Congress and targeted for 2025:
Indoor Air Quality and Healthy Schools Act
A bill to improve the indoor air in public schools throughout the United States (H.R. 9131) is pending in the Energy and Commerce Committee.
Indoor Air Quality Commercial Tax Credit
The AIRBORNE Act (H.R. 9000) would incentivize non-residential building owners to conduct indoor air quality assessments (IAQ) and upgrade their ventilation and air filtration systems. SMACNA and SMART both have endorsed H.R. 9000.
Commercial Building Conversions Act
SMACNA boosted its support on Capitol Hill for H.R. 9002, designed to expand the conversion of underutilized commercial buildings for residential use. The bill addresses the growing demand for residential construction by creating a market-based tax incentive (20% credit) for converting older commercial buildings to residential use.