Without action from Congress and the White House, most construction companies will face a 20% tax increase in 2026 as key provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire.

In a win for AGC and construction companies, the Financial Crimes Enforcement Network has issued an interim final rule that removes the requirement for U.S. companies to report their beneficial ownership information under the Corporate Transparency Act.

The Corporate Transparency Act (the CTA) is once again in effect after a Texas district court lifted the last remaining block on its enforcement on February 17, 2025, in Smith, et al. v. U.S. Department of the Treasury, et al. 

Last week, the AGC Financial Issues Forum met in Jacksonville, Florida, discussing the outlook for labor and immigration policy during the second Trump administration, the impact of tariffs on construction, and more.

Legislation would make the 20-percent Section 199A qualified small business income deduction permanent.

The end of the year brought about a flurry of legal decisions related to the Corporate Transparency Act – a law passed in 2020 that generally requires legal entities with fewer than 20 employees and $5 million to submit "beneficial ownership information" with an agency called the Financial Crimes Enforcement Network. 

Recent legal and political developments may impact December filing deadline.

Fourth in a Series of In-Depth Discussions About AGC’s Tax Priorities for 2025

A deep dive into construction tax accounting methods and the "small contractor exemption" from percentage of completion method of accounting.

Ensuring Full Expensing for Stronger Cash Flow, Safer Equipment, and a Thriving Construction Industry.