Stay Ahead: Understand How the New Legislation Affects Your Contracting Business
Overview of the Bill
The newly passed "One Big Beautiful Bill" marks a significant turning point for contractors. With permanent tax cuts, $1.2 trillion in infrastructure spending, and updated federal procurement processes, the bill aims to jumpstart American industry. However, it also comes with budget trade-offs, including cuts to Medicaid and other social programs that may affect contractors indirectly. Understand your rights and responsibilities under federal contractor laws.
This guide breaks down what contractors need to know to take advantage of the new opportunities and avoid the potential pitfalls.
Opportunities for Contractors
Infrastructure Funding
Contractors in civil, commercial, and residential construction will benefit from expanded federal and state-funded projects. Roads, bridges, broadband, and green energy upgrades are top priorities—and they need boots on the ground. Explore workplace safety standards that may impact your compliance requirements.
Tax Relief
The bill delivers permanent business tax cuts for pass-through entities, allowing LLCs, S-corps, and sole proprietors to reinvest more into hiring, tools, and systems. Read the official IRS announcement on these changes.
Tech Incentives
Digital transformation incentives within the bill mean tech-forward contractors can qualify for funding or tax credits by upgrading to CRMs, project tracking, or digital estimating platforms.
Challenges to Anticipate
Increased Competition
With trillions up for grabs, larger firms and out-of-market competitors will aggressively pursue public bids. Small contractors must prepare for stricter compliance and faster turnaround. See how our full back office support helps contractors stay compliant and organized.
Reduced Safety Nets
Medicaid and other community-facing program cuts may not affect your work directly, but they could impact your employees, clients, or local project funding.
Admin Overload
Federal contracts come with heavy documentation. Estimating, compliance, certifications, and paperwork can slow down even the most efficient team. Get admin help for documentation, permitting, and state compliance.
Action Steps for Contractors
Get Bid-Ready
✅ Renew business licenses and get bonded
✅ Prepare digital portfolios and past performance summaries
✅ Register in federal procurement systems (e.g., SAM.gov)
Streamline Operations
✅ Implement a CRM and digital job tracking tool
✅ Document processes for scheduling, invoicing, and reporting
✅ Delegate admin, compliance, and estimating tasks where possible
Increase Visibility
✅ Use SEO blogs and landing pages to attract homeowners and agencies
✅ Optimize Google Business listings and collect positive reviews
✅ Run paid ads targeting new funding zones in your area
Ready to position your business for the future?
Download our free guide and take the first step toward thriving under the new legislation.