With Congress set to vote on the finalized tax bill and send it to President Trump, the construction industry should prepare for how the bill could impact the industry. On the positive side, the public construction sector could benefit from the uninterrupted flow of private-activity bond financing. In addition, contractors structured as pass-through entities and C Corporations will see significant tax relief.
The latest version of the bill sets a new 21% tax rate for corporations. For pass-through entities, the new bill sets a 20% break on income.