S Corporation Modernization Act introduced
On July 22, H.R. 9840, the S Corporation Modernization Act, was introduced by House Ways and Means Committee member Rep. Mike Carey (R-Ohio). This legislation, which has a companion bill (S. 2017) by Sen. Tim Sheehy (R-Mont.) in the Senate, would continue to simplify the rules for Main Street businesses and make it easier to remain viable in an increasingly difficult business environment.
S corporations were created 70 years ago to help small and family-owned businesses better compete with public companies. At the time, policymakers were alarmed that too much economic activity was being consolidated into a small number of large, multinational corporations. Currently, S corporations are the U.S.’ most common form of business organization with more than 6 million located in every industry—including roofing—and employing more than 25% of private sector workers.
Unfortunately, the rules governing S corporations remain among the most restrictive of any type of business organization. To address this, the S Corporation Association, of which NRCA is a longstanding member, began working with Congress decades ago to identify helpful provisions to simplify S corporation rules, with a number of these provisions being enacted into law.
The S Corp Modernization Act would build on that success and make it easier for S corporations to compete and grow by:
- Increasing their access to capital
- Expanding the number and types of shareholders eligible to own S corporation stock
- Easing limitations that penalize S corporations compared with other business forms
Advocating for pro-growth tax policy enables members to start and grow businesses and remains a top priority for NRCA. The organization will continue working with Carey, Sheehy and other lawmakers to expand support for this legislation.
Trump administration implements more tariffs
On July 23, the Office of the U.S. Trade Representative announced new tariffs on products from 60 countries covering more than 99% of U.S. imports, including products from Canada, Mexico, India, the United Kingdom and the European Union. The tariffs are either 10% or 12.5% on certain imports and are subject to certain product exemptions. These tariffs are issued under Section 301 of the Trade Act of 1974, which is seen as a more durable legal authority for implementing tariffs than previous authorities used by President Trump and requires investigations of unfair trade practices by trading partners. The administration said it had carried out months-long investigations into alleged forced labor practices in the production of goods within the countries affected. The new duties took effect at 12:01 a.m. July 24, and a full list of exempted products can be found in a July 28 Federal Register notice.
The new tariffs replace the 10% global tariffs issued under Section 122 of the Trade Act of 1974 in February, which expired July 24. The Sec. 122 tariffs had been issued on a temporary basis after the Supreme Court struck down broad tariffs announced in April 2025 under the International Emergency Economic Powers Act.
House approves federal procurement legislation
The House passed several bills aimed at improving the rules for federal government contracting. The Federal Improvement in Technology Procurement Act (H.R. 4123) would require the Office of Federal Procurement Policy to update acquisition policies, regulations and other procedures to remove barriers that limit the ability of small businesses to win federal contracts. A second bill, the Stop Secret Spending Act of 2025 (H.R. 2069), would require agencies to report certain transaction agreements on the USASpending.gov website. Such agreements are currently arranged outside the scope of traditional contracts and grants exempt from many procurement regulations that are not currently reported, which lawmakers on both sides of the aisle believe wastes taxpayer dollars. The third bill, the Expanding Whistleblower Protections for Contractors Act (H.R. 5578), would protect federal contractor employees against retaliation for disclosing that they refused to obey an order that would violate laws or regulations. The bill expands existing whistleblower protections for defense and nondefense contractors.
These bills were approved by the House on a voice vote, indicating they have broad bipartisan support. Given this widespread support, the outlook for passage of the bills by the Senate appears favorable, although it is unclear when the Senate might consider them.
Labor Department issues new opinion letters
The Department of Labor’s Wage and Hour Division has issued two new opinion letters addressing the application of the Fair Labor Standards Act arising from employee commuter travel. According to the agency’s announcement, the letters under FLSA2026-9 deal with whether midday travel between an employee’s home and work office is work time that an employer must record and pay under the FLSA, where the employee performs work at both locations and the midday travel is offered as a voluntary alternative to unpaid commuter travel that would otherwise occur before or after the employee’s workday. Additionally, FLSA2026-10 provides analysis of whether time spent by an employee receiving pages; calling clients and other workers to schedule appointments; and driving from home to the first client appointment is work time that an employer must record and pay under the FLSA. These opinion letters are part of the department’s efforts to expand meaningful compliance assistance that helps employers, employees and other stakeholders understand how federal labor laws apply to specific workplace situations.
Another successful summer celebration in support of ROOFPAC!
Thank you to all NRCA members who joined us on the Outdoor Terrace at The Gwen July 15 during NRCA’s Midyear Committee Meetings in Chicago as we celebrated summer in support of ROOFPAC! More than 120 attendees enjoyed an evening of cocktails and connections while helping to raise crucial funds for ROOFPAC, the only political action committee dedicated to advancing the roofing industry’s interests at the federal level. NRCA would especially like to thank Johns Manville for sponsoring this event so every dollar raised can directly benefit ROOFPAC, your voice for the roofing industry in Washington, D.C. To learn more about ROOFPAC, including its exclusive clubs and benefits, or to contribute, please visit www.nrca.net/roofpac.
