Rock Solid Tax Provisions in the One Big Beautiful Bill Act

Adam Pugh

By Adam Pugh, NSSGA

 

The One Big Beautiful Bill Act (OBBBA), which passed through Congress and was signed by President Trump on July 4, is a major legislative milestone with long-lasting effects on the aggregates industry. NSSGA has long been an advocate for the favorable tax policies the OBBBA codifies for the aggregates industry. We consistently support stable, pro-growth tax policies promoting capital investment and succession planning within the construction materials sector.

 

Over the past year, NSSGA sent 14 letters to Congress addressing our priorities throughout the reconciliation process. Ahead of the bill’s passage, President Trump invited NSSGA staff and members to the White House to attend an industry stakeholder event for the OBBBA. Additionally, NSSGA sent a letter to House leadership supporting the Senate’s amended version of the bill before the final vote.

 

After passage, NSSGA Interim CEO Michele Stanley issued this press statement:

"NSSGA applauds the passage of the OBBBA, which builds upon the positive outcomes of the Tax Cuts and Jobs Act by investing in policies that promote growth, support workers and benefit small businesses. NSSGA appreciates that the OBBBA makes several key business tax provisions permanent, including bonus depreciation for eligible property acquired after January 19, 2025; domestic research expenditures; and small business deductions through qualified business income (QBI) deductions (Section 199A). The OBBBA maintains a higher estate and gift tax exemption, setting it at a $15 million base for single filers starting in 2026 and indexing it for inflation, while also protecting percentage depletion for land and other property when accounting for adjusted financial statement income. The OBBBA will provide certainty for aggregates operators to make necessary capital investments, create jobs and drive economic growth."

 

Read on for a detailed summary of the key provisions of the bill benefitting aggregates operators.

  • Permanent Bonus Depreciation: The bill restores and makes permanent the 100% bonus depreciation for qualifying property acquired and placed in service after Jan. 19, 2025. This change allows aggregate operators to fully and immediately expense capital investments in machinery, trucks and equipment, improving after-tax cash flow and encouraging reinvestment.
     
  • Section 174 Expensing for Domestic R&D: The OBBBA eliminates the current five-year amortization schedule and restores full deductibility for domestic research and development expenses. This provision is crucial for aggregate operations focused on plant optimization, emission reduction technologies and boosting production efficiencies.
     
  • Section 199A Deduction Permanency: The Qualified Business Income deduction, which was set to expire in 2025, is now permanent. Many aggregate producers, particularly those organized as pass-through entities, rely on the QBI deduction to lower their effective tax rates and remain competitive.
     
  • Estate and Gift Tax Exemption Stability: Starting in 2026, the OBBBA establishes a $15 million exemption for individual filers ($30 million for joint filers), adjusted for inflation. This higher exemption level supports long-term succession planning and helps family-owned businesses avoid forced asset sales because of estate tax burdens.
     
  • Percentage Depletion Protection: The OBBBA guarantees percentage depletion will remain available when calculating adjusted financial statement income for the minimum tax purposes. This acknowledges the depletion-driven cost structure unique to mineral extraction and safeguards a vital tool for managing taxable income.

 

These provisions will positively affect NSSGA members’ ability to plan for future investments, hire and retain skilled workers and promote growth across the construction supply chain. If you have specific questions on the OBBBA or tax policies, please contact Adam Pugh at apugh@nssga.org.
 

Originally published in September/October 2025 NSSGA REVIEW.