Contractors nationwide have a great deal to gain—or lose—in the upcoming tax debates. At the center of this conversation is 199A, which provides a 20% deduction of qualified business income. This deduction helps level the playing field between small businesses and larger corporations that benefit from corporate tax cuts. Unfortunately, 199A is set to expire at the end of 2025, creating serious uncertainty for contractors operating as S corporations, partnerships, or sole proprietorships.
The good news: Congressman Lloyd Smucker (R-PA) and Senator Steve Daines (R-MT) recently reintroduced the Main Street Tax Certainty Act of 2025 – H.R. 703 and S. 213. If passed, this bill would make 199A permanent, providing long-term tax relief for small businesses. ACCA’s Senior Vice Chair, Eddie McFarlane of Sila Services, recently met with Rep. Smucker in Washington, DC, to thank him for his leadership on this critical issue.
To keep this crucial deduction, ACCA president & CEO Barton James sent a letter urging the House Ways and Means and Senate Finance Committees to move this important legislation forward. The letter highlights the unique challenges that HVACR contractors face in today’s economic environment, including rising costs, supply chain disruptions, and workforce shortages.
Making 199A permanent means:
- Tax stability and predictability – No more worrying about looming tax hikes.
- More money to reinvest in your business – Hire workers, upgrade equipment, and grow.
- Fair treatment for small businesses – Keep small businesses competitive with larger corporations.
ACCA is calling on all contractors to support this legislation. You can make a difference by participating in our Main Street Tax Certainty Action Alert, urging your members of Congress to save 199A.
Beyond the business benefits of Section 199A, numerous studies show that this permanent deduction will drive economic growth, protect millions of jobs, and ensure fair tax treatment for small businesses.
Stay tuned to the ACCA HVAC Blog for updates on the Main Street Tax Certainty Act and other policy developments affecting contractors. For questions or to share your story about the importance of Section 199A, reach out to our government relations team at govt@acca.org.
The post The tax change that could cost contractors: ACCA urges Congress to save 199A appeared first on ACCA HVAC Blog.