The International Sign Association (ISA) applauds the passage of tax provisions contained in the “One Big Beautiful Bill” that benefit the sign, graphics, and visual communications industry.
The bill, which is headed to the President’s desk for signing, extends or makes permanent key tax provisions from the 2017 Tax Cuts & Jobs Act. ISA worked with a coalition of business groups to support the original tax cuts and to advocate for their extension.
Key impacts on the sign and graphics industry include:
- “Pass through” increased and made permanent – The 2017 tax law created a new 20% deduction for “pass through” business entities, including sole proprietorships, partnerships, and S corporations. This deduction was scheduled to be phased out at the end of 2025, and the new law makes it permanent.
- 100% Bonus Depreciation restored and extended – The 2017 tax law allowed businesses to immediately deduct (expense) 100% of the cost of qualified new investments (i.e., equipment, machinery, and certain improvements) in the year those investments were made. Those provisions were in force for five years, then began declining by 20 percentage points each year, and were set to expire at the end of 2026. The new law immediately restores the 100% deduction through 2030.
- Full Expensing of R&D Expenditures increased and extended – Sign and graphics companies innovating with new materials, processes, or software can now fully deduct research and development costs, including wages, supplies, and facility overhead, in the year they are incurred (rather than being amortized over 5 years).
- Estate Tax Exemption expansion – Family-owned sign and graphics companies benefit from a significant increase in exemption from the estate tax, with these higher exemption levels now made permanent. This change offers greater protection and smoother transition to the next generation of sign and graphics companies.
Other tax provisions increase credits for employers providing childcare, allow employers to deduct overtime pay for certain employees, and expand qualified 529 expenses for workforce development.
“These tax provisions allow companies in our industry to invest in new equipment, hire workers, and expand operations with confidence in a certain and beneficial tax environment,” said Lori Anderson, ISA president and CEO. “ISA was pleased to participate in efforts urging Congress to act quickly on these vital tax policies.”
David Hickey, ISA vice president, advocacy, offers more insights in this video.
ISA is offering a webinar on Tuesday, July 15 at 2:00 pm EST for companies in the sign, graphics and visual communications industry to provide more details on how to take advantage of these restored, extended and permanent tax provisions.
