TRG | The Bottom Line – 7/25

In the wake of the passage of The One Big Beautiful Bill Act (BBB), TRG reached out to our private company contacts to ascertain their views of how this legislation may impact their business. The BBB is intended to be a comprehensive tax reform package that builds on the foundation laid in the 2017 Tax Cuts and Jobs Act, aiming to make many of its provisions permanent while introducing new tax relief measures for individuals and businesses. One key tenet is that the BBB will spur economic growth. Many have voiced a flurry of concerns with it (i.e., increasing the federal deficit and benefits skewed to higher-income households and business owners). TRG conducted a survey of private companies (spanning manufacturing, distribution, services) to get a sense of how the bill is being perceived and would the bill change sentiment. The quick answer is that it is too early to tell, and many other uncertainties in the world may cloud or override benefits from the BBB in the near-term. On balance, however, construction and industrials should stand to benefit from expanded expensing and investment incentives. As one respondent noted, “Net positive financially – lower taxes for privately-held businesses and accelerated depreciation.” Please share with TRG your perspective on how this may impact your business and outlook!