👋 Situational awareness: NECA's Government Affairs team is actively engaging with Congress to ensure pro-NECA provisions remain in the upcoming Senate bill.
🏅 Big Wins:
Securing a permanent increase of the S-CORP rate deduction from 20% to 23% for pass-through entities, providing significant tax relief for NECA members.
Restoring 100% bonus depreciation and raising Section 179 limit to $2.5 million to support immediate expensing of investments.
Record-breaking attendance at the 2025 Legislative Conference
Let's dive in!
📰 Tax Reform: The Latest on the ‘Big, Beautiful’ Bill
At 8:00 AM ET on May 14, the House Ways and Means Committee reported the Republican tax bill out of committee, 17 hours and 30 minutes after the gavel-in. The final bill includes permanent extensions of 2017 Tax Cuts and Jobs Act (TCJA) provisions, new tax exclusions for overtime/tips, and adjustments to state and local tax (SALT) deductions. Democrats filed 38 amendments, all rejected along party lines.
Yes, but: Speaker Johnson faces significant challenges before the bill is floor-ready. The SALT Caucus Republicans are threatening to oppose the bill due to the $30k SALT deduction, which they consider inadequate. And several ultra-conservatives voted against the draft in the budget committee this morning, temporarily derailing the measure.
Our thought bubble: The GA team's perspective is that the package is getting there, but compromises need to be made in Congress over the SALT deduction and energy tax provisions.
Section 199A Qualified Business Income Deduction: Increases the QBI deduction for pass-through entities (such as S corporations, partnerships, and sole proprietorships) to 23% permanently.
Impact: Provides substantial tax relief for NECA members, boosting after-tax cash flow for workforce training and expansion.
Big win: Securing the 199A deduction increase to 23% is a major achievement for our government affairs team, surpassing the standard 20% extension.
Special thanks: We would like to extend a big thank you to NECA members who participated in roundtables in-district and our fly-in participants; your advocacy efforts paid off!
Estate and Gift Tax Exemption: Increases the exemption to $15 million per individual, indexed for inflation.
100% Bonus Depreciation & Section 179 Expensing: Restores permanent 100% bonus depreciation and raises the Section 179 limit to $2.5 million.
Impact: Supports immediate expensing of investments in machinery, vehicles, tools, and facility upgrades. Enhances cash flow and competitiveness.
Individual Income Tax Rates: Makes permanent the TCJA’s lower rates and maintains current brackets.
Impact: Provides continued tax relief for NECA members filing as individuals or pass-through entities. Enhances certainty for tax planning and personal income management.
Standard Deduction: Permanently doubles the standard deduction (as established by the TCJA) and provides an additional increase for 2025–2028. ($2,000 for joint filers, $1,500 for heads of household, $1,000 for singles)
Impact: Simplifies filing and increases after-tax income for the workforce.
Alternative Minimum Tax Relief: Increases exemption and phase-out thresholds permanently.
Impact: Reduces unexpected AMT liability risks for members.
The road ahead: The House Rules Committee will draft the full package from the Budget Committee next week for floor introduction.
Expect this around May 19, with the Rules Committee needing about 48 hours. A House floor vote is likely on May 21st or 22nd. Once it passes, it moves to the Senate.
What we’re doing: The team is now turning our attention to the Senate.
We’ll spend the next few weeks pounding the pavement, ensuring pro NECA provisions remain in the bill’s text.
Plugged into Policy: Understanding the Latest Tariff Adjustments
President Trump has announced a 90-day pause on all reciprocal tariffs on China, effective immediately. This pause is meant to provide the time needed to negotiate a new deal and comes after recent conversations between U.S. officials and China on existing trade barriers.
By the numbers: Tariffs on China are now at 30 percent. This reflects a 10 percent baseline tariff applied to most countries, plus an additional 20 percent penalty due to China's role in fentanyl trafficking.
The broader “Liberation Day” policy still imposes a 10 percent reciprocal tariff on nearly all imports, except for Canada and Mexico under USMCA framework.
Exemptions from the original Executive Order remain, including on copper and critical minerals, protecting materials essential to NECA members.
Next steps: The Government Affairs team seeks input on tariff impacts, highlighting the need for advocacy and preparation for potential formal exemption procedures.
Harmonized Tariff Schedule Code (Schedule B number), if applicable or known
Country of origin
Any relevant details or context that would support our advocacy efforts on your behalf
The impact the current tariff on this product has on your business, employees, customer relations, or ability to operate effectively.
Why it matters: Your input is crucial for effective representation and influencing policy changes.
Legislative Conference 2025: Advocacy, Action and a Path Forward
From April 28–30, 2025, Washington, D.C. became the epicenter of electrical industry advocacy as NECA hosted its annual Legislative Conference. With record-breaking attendance, NECA contractors and chapter leaders from across the country gathered to engage with lawmakers, hear from high-profile speakers, and advocate for critical legislative priorities shaping the future of the electrical construction industry.
A Growing Voice on Capitol Hill
Wisconsin Chapter Contractors pause for a photo with Rep. Tony Wied (R-WI)
This year’s conference underscored the importance of face-to-face engagement with Congress. NECA's Government Affairs team facilitated over 200 meetings between member contractors and elected officials, enabling participants to champion policies supporting job creation, energy independence, and infrastructure investment.
"If you really want to understand how this country works, you’ve got to come here and be part of the process." - Phillip Rose of Roman Electric Co.
Timely Legislative Priorities
New York Contractors discuss NECA’s legislative priorities with Rep. Nicole Malliotakis (R-NY)
Attendees were well-prepared to discuss NECA’s 2025 “Legislative Asks,” which focused on three key areas:
Tax Reform: Advocating for a reconciliation package that strengthens the tax code to support small businesses and economic growth. This topic was supported by a panel of association tax experts led by NECA Director of Government Affairs James Payne.
Energy Independence: Supporting comprehensive energy policies that enhance domestic production and modernize the power grid.
Infrastructure Investment: Promoting legislation that bolsters the nation’s critical infrastructure and expands access to necessary resources.
"We’re here with pragmatic solutions and asks… we all want to get back on that construction site and keep them going." - David Boddy of INTREN/MasTec
Insightful Conversations and Powerful Speakers
Marco Giamberardino and Rep. Rob Bresnahan (R-PA) engage in a fireside chat
Insightful Conversations: The event began with a lively fireside chat between Congressman Rob Bresnahan and NECA SVP Marco Giamberardino. They explored Bresnahan’s journey from electrical contracting to legislative work, underlining how skilled labor shapes effective policies.
Other distinguished speakers included Representatives Lisa McClain, Troy Balderson, Greg Stanton, Linda Sanchez, and Brendan Boyle. Each emphasized the role of skilled trades in the American economy and voiced strong support for legislative initiatives that promote job creation and infrastructure development.
U.S. Department of Labor Secretary Lori Chavez-DeRemer delivers remarks to Conference attendees
Department of Labor Secretary Lori Chavez-DeRemer reinforced the administration’s commitment to worker protections and apprenticeship programs, stating the need to “modernize the workforce” and strengthen Registered Apprenticeships.
Industry Momentum and Innovation
NECA CEO David Long delivered inspiring remarks on the state of the industry and announced an exciting partnership with Google. The tech giant will support the electrical training ALLIANCE in integrating AI tools into its curriculum—aiming to train 100,000 electrical workers and 30,000 new apprentices nationwide.
"What we’re looking for as NECA contractors is just getting the work out there and allowing us to do our jobs… you actually feel like you're making a difference." - John Desens of Westphal & Company Inc.
Wired for Influence: The Members Powering NECA’s Political Impact
We’d like to extend a very special thank you to the following PLCs who renewed their NECAPAC contributions:
Robert Davies, Jr. – Davies Electric Co.
Brent Fatzinger – Abbott Electric
Stephen Green – Task Electric
Todd Grossweiler – Allison Smith
Mark Huston – Lone Star Electric
David Long – NECA
Tom Morton – L.L.D. Electric Co.
Greg Rick - Rick Electric Co.
Evan Rogers – Chewning & Wilmer
Travis Sharp – Madsen Electric
Rob Smith – Sargent Electric Co.
Marc Tower – Citadel Electric
Jason Walden – Greater Cleveland & North Central Ohio Chapter NECA
We’re thrilled to honor Marvin Nelson of Nelson Electric and Frank Schetter of Schetter Electric LLC for 10 years of PLC membership! Their ongoing commitment has helped ensure the growth and stability of NECAPAC and has helped us get to where we are today.
Congratulations to the following Chapters who have reached their 2025 PLC Chapter Goal:
Monterey Bay Chapter NECA
Puget Sound Chapter NECA
San Diego Chapter NECA
Southern Sierras Chapter NECA
NECA NextGen Fly-In: The Future of Advocacy Starts Here!
Calling all emerging leaders!
NECA’s NextGen Fly-In is your chance to step into the spotlight and take your voice to Capitol Hill.
Join fellow rising professionals in Washington, D.C. for hands-on advocacy training, high-impact meetings with lawmakers, and a front-row seat to the legislative process that shapes our industry.
