Tax issues were at the forefront of the Construction Financial Management Association’s (CFMA) 2025 Annual Conference & Exhibition, which attracted nearly 2,000 attendees in Orlando, Florida. This article will explore some of the topics covered during the conference, which continues to be one of the premier events in the construction finance industry. Forvis Mazars is a proud Principal Partner of CFMA and was grateful for the opportunity to learn and connect with conference attendees.
Several tax issues were among the wide range of topics at the event, many of which were related to the recently passed House Resolution 1 (the One Big Beautiful Bill Act, or the Act). Here are some key tax takeaways from the conference:
Research and Development (R&D) Tax Credits & Section 174
Contractors are continuing to evolve and look for ways to innovate products and processes for their clients. With this comes the opportunity to take advantage of R&D tax credits. With the passing of the Act, it makes it more advantageous for contractors to look into opportunities to claim tax credits. Contractors should work with their advisors see if they are able to take advantage of potential R&D tax credits.
State & Local Taxes (SALT)
Much of the SALT tax update centered around state-specific legislative changes, recent court cases, and new state-level tax incentives. There were also discussions about expiring SALT provisions from the Tax Cuts & Jobs Act of 2017 (TCJA) and new proposed legislation that is now part of the Act. One example is the $10,000 SALT cap put in place by TCJA. Under the recently passed Act, the SALT cap is increased to $40,000 for most taxpayers in 2025 and increases by 1% through 2029, after which the cap drops to $10,000 in 2030. Phaseouts apply based on modified adjusted gross income. Contractors who operate in multiple states should continue to monitor state compliance and reporting requirements and potential planning opportunities.
Succession Planning
Succession planning emerged as a key theme throughout the conference, with employee stock ownership plans (ESOPs) receiving significant attention. An ESOP gives employees ownership of the company while providing the owner with an exit strategy. This type of structure incentivizes the employees to have the company perform well as they gain ownership in the company, and the value generated helps fuel the employee’s retirement. Another highly discussed topic was private equity inserting itself into the construction industry. Private equity has focused on buying specialty trade contractors that have repeat service work. Overall, succession planning is a process that takes thoughtful planning to execute properly. You can never start too early and never ask too many questions to your succession planning team.
House Resolution 1 (The One Big Beautiful Bill Act)
There was a detailed discussion about expiring 2017 TCJA provisions and what had been proposed legislation (and is now law with the passage of the Act) and extenders contained in the Act. Key topics included:
- The estate tax exemption (currently sitting at just under $14 million per taxpayer) was scheduled to expire at the end of 2025 and revert back to pre-TCJA levels of around $7 million per taxpayer. Under the Act, the estate tax exemption is both raised to $15 million and made permanent.
- Under the Act, 100% bonus depreciation would be reinstated permanently for property placed in service on or after January 19, 2025.
- Required capitalization for domestic research and experimentation (R&E) under §174 is suspended. Provisions are included for expensing unamortized domestic R&E.
- The business interest limitation calculation under §163(j) would revert back to the method used prior to 2022. For tax years beginning after December 31, 2024, businesses subject to §163(j) are able to add back depreciation, amortization, and depletion when arriving at the calculation of adjusted taxable income (ATI).
- Qualified business income (QBI) deduction – The 20% QBI deduction for pass-through business income is now permanent, with some changes to phase in amounts.
These proposals are likely to change as they work their way through Congress, so businesses should monitor closely and keep in contact with their advisor team to take advantage of tax law changes for 2025 once finalized.
How Forvis Mazars Can Help
CFMA’s 2025 Annual Conference brought together a wide range of construction companies from across the nation to connect and learn. While the construction industry is constantly changing, our team of industry professionals is here to help. Visit our website for construction-specific resources for your business or reach out to one of our professionals. We look forward to sponsoring and attending next year’s event in Phoenix!