Tax bills for most small construction companies would fall under a broad tax-reform outline unveiled on Sept. 27 by the Trump administration and congressional Republicans.
The proposal calls for cutting the corporate tax rate to 20% from 35%. Perhaps most important for small construction firms, the tax rate for pass-through businesses would be limited to 25%. Pass-through entities, such as sole proprietorships, partnerships and S-corporations, are taxed at individual, not corporate, rates, which hurts many construction companies in those categories.