President Donald Trump signed the sweeping One Big Beautiful Bill Act into law, bringing welcome news for roofing businesses but massive cuts that could undermine those benefits.

The 887-page budget and tax bill focused on extending or making permanent many of Trump’s tax cuts made during his first term.

To fund the provisions, cuts will be made to energy efficiency tax credits and social safety net programs, such as Medicaid and SNAP. According to the nonpartisan Congressional Budget Office, the law is expected to add an estimated $4.1 trillion to the debt through fiscal year 2034.

Bill supporters celebrate the tax breaks for businesses and individuals. The National Roofing Contractors Association described the One Big Beautiful Bill Act as "overwhelmingly positive for the roofing industry," stating that it delivers on many priorities the association has long pursued.

Critics of the bill point to it adding billions to the national debt while causing financial harm to states’ economies and eliminating clean energy provisions that spurred construction and development.

The public is largely split on the legislation. According to a Harvard CAPS/Harris poll released Monday, 44% of respondents said they supported the bill, while another 44% didn’t support it. The remaining 12% said they weren’t sure.

Tax Benefits

The following are tax provisions that could help roofing companies:

Section 199A. A 20% tax deduction is made permanent, providing relief for pass-through businesses by enhancing cash flow. This is retroactive to Jan. 1, 2025.

Estate tax exemption. This was increased to $15 million, protecting family businesses from one generation to the next. This was made permanent.

Income Thresholds. The top individual rate of 37% was made permanent.

Research & Development deduction. This was made permanent, so businesses can fully deduct the cost of their U.S.-based R&D investments.

Bonus depreciation. This was made permanent and at 100%, restoring full and immediate expensing for investments in machines, equipment and vehicles.

Section 179 Cap. This cap was raised from $1 million to $2.5 million to allow full expensing of nonresidential real property.

Expansion of Section 529. This now includes tuition savings plans to include training and certification programs.

Expansion of Pell Grant. Pell grants have been improved to include training and certification programs.

Section 111101. This allows taxpayers to deduct 100% of the cost of certain new factories, certain improvements to existing factories, and certain other structures.

Preservation of Section 1031 Like-Kind Exchanges. Though an indirect benefit, this maintains the ability to defer capital gains taxes through property exchanges. This was made permanent.

Not all of the tax benefits were lauded by the industry. The NRCA opposed the inclusion of no new limitation on the business State and Local Tax, or SALT, deduction in a previous iteration of the bill. NRCA officials say this could have resulted in a net tax increase for most pass-through employers.

The package includes a deduction cap increase from $10,000 to $40,000, which will revert to $10,000 in 2030. A 30% phase-out kicks in once modified adjusted gross income exceeds $500,000.

Cuts to Energy Efficiency

Among the cuts made to pay for the legislation are the elimination of clean energy tax provisions from the 2022 Inflation Reduction Act.

“We are disappointed that the final bill includes the phase-out or termination of several energy tax provisions, including solar credits,” NRCA officials said.

RELATED: Big Changes for Roofers as 179D Repealed

Specific eliminations affecting the roofing industry include:

Section 25D residential clean energy credit. This provided an uncapped 30% non-refundable tax credit of eligible costs of purchasing and installing solar panels, solar water heaters, battery storage technology and geothermal heat pumps. This will terminate for expenditures after Dec. 31, 2025.

Section 179D energy-efficient commercial buildings deduction. This terminates for properties constructed after June 30, 2026.

Section 45L new energy-efficient home credit. This terminates after June 30, 2026.

Section 48E clean electricity investment credit. This refers to electricity generated by solar or wind sources. The credit is terminated for any facility placed in service after Dec. 31, 2027.   Solar or wind facilities that begin construction within 12 months after the date of the enactment are exempt from the Dec. 31, 2027, placed in service rule.

No credit is allowed for any investments that are rented or leased to a third party.  

Section 45Y clean energy production tax credit. Per the NRCA, for electricity produced by solar or wind, the credit is terminated for any facility placed in service after Dec. 31, 2027. The solar or wind facilities that begin construction within 12 months after the date of the enactment are exempt from the Dec. 31,2027, placed in service rule.

The bill also ends the Greenhouse Gas Reduction Fund, which gives funding to nonprofits that provide financing to projects that reduce greenhouse gas emissions.

Immigration Spending

The bill provided unprecedented funding boosts to immigration enforcement, including $75 billion to Immigration and Customs Enforcement, making it the highest-funded federal law enforcement agency.

As previously detailed, this will likely lead to stricter employment verification, the potential for increased ICE raids, and exacerbate the labor shortage due to roofing’s reliance on immigrant labor.

Totaling $170 billion, the immigration enforcement funding includes expanding ICE’s detention system, bolstering ICE arrest and deportation efforts, and other immigration-related efforts like building walls at the U.S.-Mexico border.

Medicaid and SNAP

Although they don’t directly affect roofing companies, the legislation’s changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) are expected to have significant impacts on jobs and state economies.

The legislation includes restrictions on Medicaid, a government-sponsored health care program for low-income and disabled Americans. The Congressional Budget Office estimates that approximately $1.02 trillion in federal spending will be cut from Medicaid and Children’s Health Insurance Program benefits, due in part to roughly 10.5 million Americans losing health coverage over the next decade.

The bill includes $50 billion in relief funding for rural hospitals over five years to help mitigate the impact of the roughly $1 trillion in Medicaid cuts.

The bill also moves costs for SNAP to some states. The federal government currently funds the program in full and will fund benefits for states with an error payment rate below 6% in 2028.

Similar to the Medicaid changes, SNAP will have work requirements for able-bodied adults to qualify. Additionally, the age requirement cap will rise from 54 to 64 years old.

The Medicaid requirements will take effect by early 2027. It is unclear when the SNAP requirements take effect, though states’ shares of administrative costs will increase from 50% to 75% in FY 2027.

The Commonwealth Fund, a nonpartisan organization focusing on improving healthcare, estimated that combined losses from Medicaid and SNAP cuts would reach $1.1 trillion over the next decade.

These cuts will have a ripple effect on states’ economies, with Commonwealth estimating an average reduction in states’ GDPs for 2026 at $113 billion. Nationwide, an estimated 1.03 million jobs could be lost, 476,000 of which aren’t health- or food-related.

In an article, the White House said the Big Beautiful Bill eliminates waste, fraud and abuse by ending benefits for at least 1.4 million illegal immigrants who are "gaming the system." It lauds the bill for requiring states to contribute a greater portion of the cost of administering SNAP benefits, saying it closes broad loopholes for work requirements.

"It implements popular work requirements for able-bodied Americans receiving taxpayer-funded benefits," the article states. "The One Big Beautiful Bill lifts Americans up to find a better quality of life through the dignity of work."

The bill passed in the Senate with a 51-50 vote that saw Vice President JD Vance casting the tie-breaking vote. It then passed in the House in a 218 to 214 vote.

Republicans used the budget reconciliation process to pass the bill, which requires a simple majority rather than the 60-vote threshold to move forward, bypassing a Democratic Senate filibuster and the need to negotiate with Democrats.