In 2017, Congress passed the Tax Cuts and Jobs Act, a landmark tax reform package that included several ACCA priorities that benefited contractors and small businesses. Included in this package was the HEAT Act, which reduced commercial HVAC expensing from 39 years to immediate (zero years). The HEAT Act was an ACCA priority since 2004 when ACCA Member Phil Forner lobbied then-Congressman Pete Hoekstra to address commercial equipment depreciation schedules.

The tax reform package also expanded exemptions for the Death Tax, doubling the exemptions through 2025. This provision expires in 2026.

The S-Corp tax provisions in the Tax Cuts and Jobs Act created more parity between small business and large corporations. These provisions removed the double taxation that occurs on S-Corps, reducing the tax burden on small businesses.

SOLUTION: ACCA supports strengthening these provisions to create more parity with corporate tax cuts for small business owners. In May, 2023 Senator Steve Daines (R-MT) introduced S. 1706, the Main Street Tax Certainty Act, which would make the 199A deduction for ‘S-corporations’ or ‘pass-through’ entities permanent. 199A allows small businesses structured as ‘S-corporations’ to deduct up to 20 percent of qualified business income, promoting greater tax parity with typically larger ‘C-corporations’. You can participate in ACCA’s Action Alert on the Main Street Tax Certainty Act here and let your Senators know why they should support this important legislation.  

SOLUTION: ACCA Opposed Build Back Better (BBB) tax hikes on small businesses and individuals. BBB have kept the tax rate for larger C-Corporations the same, while raising the rates on small businesses and individuals. ACCA kept its members from having to foot the bill on trillions of dollars in spending amid record inflation.