3 Big Things:
The Most Impactful Bills on Capitol Hill

Thanks to the passage of several large infrastructure and economic development bills in the past year, the construction industry is experiencing a massive boom across the nation. Obviously, this is great, but it also brings into focus some issues SMACNA Greater Chicago members have with federal regulations.

We asked Stan Kolbe, SMACNA’s Executive Director for Government and Political Affairs, to highlight the three most impactful pieces of legislation on Capitol Hill.

SMACNA GC encourages members to contact their senators and representatives to urge them to support bills like these. Your voice carries weight! To find your congressional reps and how to contact them, visit https://www.congress.gov/members/find-your-member.

H.R. 7024: Tax Relief for American Families and Workers Act

Status: H.R. 7024 passed the House on Jan. 31 and is up for consideration in the Senate.

Retroactive Extension of 100 Percent Bonus Depreciation: would restore 100 percent depreciation for qualified property instead of the 20 percent annual phase down that’s currently in place. This is retroactive for 2023.

Extension and Permanence for R&D Expenditures: would allow companies to immediately deduct research and development expenses instead of amortizing over a five-year period. This is retroactive for 2023. 

Expand Expensing and Interest Deductibility for Small Businesses: would increase the maximum eligible amount of equipment investment and extend the point at which the benefit phases out.

H.R. 2726: Small Business Payment for Performance Act

Status: referred to the House Committee on Small Business on April 19, 2023. Has yet to leave committee. 

Why It's Important: Under current federal practices builders aren’t compensated for change orders until the entire federal project is completed. The scope of federal projects can be monumental. Millions of dollars can be added to the cost of a project through change orders. And since federal projects take months or even years to complete, it could be months or years before members are compensated for additional expenses. This bill would require the federal government to pay 50 percent of the cost of a change order once it’s certified by a government official and the remaining 50 percent upon project completion.

H.R. 2891: The SAFE Banking Act

Status: H.R. 2891 was introduced to the House on April 26, 2023. It was referred to the Subcommittee on Economic Opportunity on May 3 and has yet to leave committee. 

Why It's Important: Currently, most banks do not serve the state-legal cannabis industry because it opens them up to the potential of federal retribution, even if cannabis is legal medically and/or recreationally in that state. Because of this, most business is done in cash. State-sanctioned cannabis growing facilities require extensive, high-tech HVAC infrastructure. The passage of this bill would help SMACNA contractors conduct business more safely with the growing legal cannabis industry.