NASBP Focal Point – July 14, 2025

Federal Report

Federal: On July 4th, President Trump signed into law H.R. 1, the Big, Beautiful Bill. Changes for U.S. businesses include:

• Makes permanent and expands the 20% qualified business income (QBI) deduction for owners of pass-through entities, i.e., partnerships, limited liability companies, S. Corps and sole proprietorships; 
• Makes permanent 100% bonus depreciation for the cost of qualified new and used assets, for property acquired after January 19, 2025;  
• Increases the cap on the business interest deduction by excluding depreciation, amortization and depletion from the calculation of “adjusted taxable income;
• Permanently allows the immediate deduction of domestic research and experimentation expenses (retroactive to 2022 for eligible small businesses);
• Eliminates clean energy tax incentives, including the qualified commercial clean vehicle credit, the alternative fuel vehicle refueling property credit and deduction for energy-efficient commercial buildings;
• Permanently increases the maximum employer-provided childcare credit to $500,000 ($600,000 for small businesses) with annual inflation adjustments; and
• Makes permanent and modifies the employer credit for paid family and medical leave.

On Wednesday, the Senate Small Business Committee will markup several bills, including S. 2232, introduced by Ranking Member Ed Markey (D-MA) to amend the Small Business Investment Act by increasing the guarantee contract size for the SBA Bond Guarantee Program from $6.5M to $20M. Similar legislation was previously introduced by Senator Ben Cardin (D-MD). Additionally, Section 2 of the bill amends 15 US 694 (c) by limiting use of the revolving fund to not more than 5% to cover administrative costs incurred by the Program relating to “information technology and systems, personnel, outreach activities and relevant contacts.”

The 2026 NASBP and SFAA Joint Legislative Fly-in is set for Feb. 24-25. Once again, there will be no registration fee to attend, making it the perfect opportunity to join your NASBP colleagues in an effort to ensure federal policymakers understand the significant role bonds play to protect taxpayer funds and advance public works infrastructure projects. The Fly-in will kick off on Tuesday, February 24, with an afternoon “Washington Program” and a welcome reception at the host hotel, the Hilton Washington DC Capitol Hill. Wednesday, Feb. 25, will be dedicated to Capitol Hill appointments. NASBP will provide more details about registration, hotel and Capitol Hill appointments in the coming months.

State Activity

Update: LA SCR 69 (Womack): Establishes a task force to make recommendations on the Louisiana Public Works Act, focusing on improving the efficiency and timeliness of public works projects and payments in the state. In previous years, Senator Womack created a similar task force to address state procurement matters. It is likely that Senator Womack will repoint those individuals to serve on the newly established task force such as the President of the LA Surety Assn, the CEOs of the LA AGC and ABC, and the President of the ASA whose goal will be to investigate and propose legislative changes to address inefficiencies in public contract delivery and payment processes. The task force is scheduled to hold its first meeting by September 1, 2025, and to submit a final report with findings and recommendations by January 31, 2027. LA SCR 69 was enrolled in both chambers and will soon be delivered to the governor for signature. However, the Resolution can become law without the governor’s signature.

New: PA SB 871 (Dush): Amends Section 3102 of the “Public Works Contractors’ Bond Law” to permit a successful bidder to furnish a bond or other forms of security, such as a irrevocable letter of credit, to a PA township’s board of supervisors to guarantee the performance of a contract. Such alternative forms of security must meet “suitable reasonable requirements” determined by the board as an alternative to furnishing a bond. SB 871 was referred to the Senate Local Government Committee. In the 2023-2024 Session, this bill was introduced as Senate Bill 982. Senate Bill 982 passed the Senate unanimously and was tabled after first consideration in the House.

If you are aware of any bills impacting the industry, please reach out to Larry LeClair, NASBP’s Director of Government Relations, and let us know.