Senate Republicans are fast-tracking their version of the reconciliation bill to meet President Trump's July 4th deadline following the House's passage of the 'One Big Beautiful Bill Act.'
Welcome to this edition of Inside Washington, where we bring you the latest updates and insights from the heart of the nation's capital including:
📜 Reconciliation Updates
👷♂Project Labor Agreements
💰 Tariffs
🛫 NECA NextGen Fly-In
Let’s dive in!
Senate Republicans push changes to House tax bill
Senate Republicans are fast-tracking their version of the reconciliation bill to meet President Trump's July 4th deadline following the House's passage of the 'One Big Beautiful Bill Act.'
Why it matters: The Senate's approach includes notable differences from the House's version, impacting business deductions and state tax provisions.
The 199(a) Qualified Business Income Deduction for S-Corporations is set at 20%, compared to the House's 23%.
State and Local Tax (SALT) Deduction would remain at $10,000, whereas the House proposed $40,000.
Details: The bill's flexibility for contractors has increased, striking provisions that previously limited tax credit transferability and timing.
Nuclear, geothermal, and hydroelectric project credits are extended until 2036 at 100%, wind and solar credits will be phased out by 2028. Residential solar credits will also be available only to projects brought online within 180 days of enactment.
What's next: NECA will continue to collaborate with the Senate and industry partners to advocate for beneficial tax credits and policies.
Trump upholds Biden-era construction rule
The Trump administration has decided to uphold a Biden-era regulation that mandates Project Labor Agreements (PLAs) for federal construction projects over $35 million.
Why it matters: This decision impacts how large-scale federal projects are executed, favoring bids with PLAs while still encouraging competitive bidding.
Non-union contractors and some private companies have criticized the move.
Labor unions have expressed support for President Trump's decision.
What's next: A lawsuit challenging the rule is progressing through the courts and is expected to see renewed legal action.
Trade turmoil: Tariff tensions escalate
The Trump administration's tariff agenda faces legal setbacks, creating uncertainty for businesses relying on imports.
Legal landscape shifts: These tariffs impact the electrical construction industry, affecting material and equipment costs.
A 10% universal tariff on imports and 30% on Chinese goods were blocked by the U.S. Court of International Trade, citing overreach by President Trump.
The U.S. Court of Appeals quickly reinstated most tariffs temporarily, adding to the unpredictability.
Latest on policy:
A new 50% tariff on steel and aluminum begins June 4, increasing previous levels by 25%.
Diplomatic efforts include a 90-day suspension agreement with China, reducing tariffs significantly and maintaining access to rare earth elements crucial for U.S. manufacturing.
What's next:
The administration plans to send letters to countries not engaging in trade talks before the July 9 deadline, outlining grievances and potential actions.
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