Thought Leaders: Potential Impacts of the One Big Beautiful Bill Act on the Construction Industry

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law and it is anticipated to impact the construction industry in a variety of ways. This article highlights anticipated impacts, including those concerning taxation, ongoing and future projects, and the construction workforce. It also identifies steps that construction professionals should consider taking in response to the changed laws.

• Tax Impacts. The OBBBA makes significant changes to business tax laws and incentive programs. These changes may present construction businesses with the opportunity to improve cash flow and purchase new and used equipment and technologies. The new law also phases-out or eliminates numerous clean energy tax incentives and credits which may affect existing and new clean energy construction projects. In addition, the OBBBA makes numerous tax changes applicable to pass-through entities, such as sole proprietorships, certain limited liability companies, and S-Corp shareholders. These changes may allow individual owners of closely held and family-owned construction companies to maximize tax deductions and better account for business losses.

• Project Impacts. The OBBBA is likely to increase the availability of certain types of construction projects while reducing others. For example, the new law allocates significant resources to the construction of the border wall system and may create new opportunities for work along the country’s southwest border. Multifamily, commercial, manufacturing, and infrastructure construction projects may also increase because of OBBBA tax credits and incentives that encourage investors and developers to pursue those projects. However, with the phasing out and elimination of clean energy tax credits and incentives, renewable energy project opportunities may be available in the short term but are expected to decline in the next few years.

• Workforce Impacts. The OBBBA is expected to have an impact on the construction industry workforce as well. For instance, the new law makes Pell Grants and 529 College Savings Plans funds available to be used for qualified vocational programs, trade school, and professional licensing and certification programs for the first time. These changes may increase the construction workforce as students take advantage of these opportunities. But other provisions of the OBBBA are expected to decrease the construction workforce as far as it is estimated that between 25% and 30% of construction industry workers are immigrants. The OBBBA allocates over $150 billion to immigration enforcement and may, therefore, reduce the construction industry labor market.

• What Next? Construction industry professionals should consider taking steps to anticipate the impact of the OBBBA on their businesses. Among other things, they may wish to: (1) consult an accountant to identify deductions, incentives, and other tax saving opportunities; (2) consult with an attorney to evaluate business structure, succession and estate planning, and to review pending bids and existing contracts related to renewable energy projects to mitigate potential losses and liabilities; and (3) position themselves for new work which is likely to become more available as a result of the OBBBA. 

If you have questions about these new laws and their impact on your construction business, bids, or construction contracts, contact BHGR’s Construction Group today.

This article is informational only. The presentation or use of this information does not in any manner constitute an attorney-client relationship between BHGR and the website user. While the information on this site concerns legal issues, it is not intended as legal advice and is not a substitute for particularized advice from your own legal counsel.