November 17, 2025

The tax environment for construction contractors continues to shift, with 2025 bringing one of the most consequential legislative changes in recent years: the passage of the One Big Beautiful Bill (OBBB). Signed into law in July, OBBB introduces sweeping reforms that directly affect the construction industry—from permanently extending 100% bonus depreciation and expanding Section 179 expensing limits, to introducing new incentives for industrial development and modifying opportunity zone rules.

These changes offer substantial opportunities for contractors to improve cash flow, accelerate deductions, and strategically plan capital investments. At the same time, revised accounting methods, stricter workforce compliance measures, and evolving IRS guidance demand careful attention.

This whitepaper highlights key tax planning strategies and considerations for 2025, with a focus on leveraging new provisions under the OBBB while managing ongoing risks.

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Author: Claudia R. Wolter, CPA, CCIFP, CCA, CSSGB

Claudia Wolter, a Shareholder and the Quality Control Director with KatzAbosch, joined the firm in 1988. She has played a major role in leading the firm into cutting-edge initiatives. She serves as a leader within the firm’s Accounting and Auditing Services Group and is a member of the Construction and Real Estate Services Group. A dedicated professional, Claudia holds the prestigious distinction of Certified Construction Industry Financial Professional (CCIFP), the designation of Certified Construction Auditor (CCA) from the National Association of Construction Auditors (NACA), and a Lean Six Sigma CPA Green Belt certification from Ohio State University ATI and Boomer Consulting, Inc. In addition, Claudia is an Executive Committee member of Construction Industry CPAs and Consultants (CICPAC) and serves on the Business and Industry Committee of the Maryland Association of Certified Public Accountants (MACPA).

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