Disclaimer: This article is a condensed summary of a presentation given by the International Sign Association (ISA), featuring David Hickey, VP of Advocacy at ISA, and Dayo Adesuyi, a CPA and attorney with Webster, Chamberlin & Bean. We do not claim to speak on behalf of the ISA or the presenters, but are simply relaying key information as presented. This article is not legal or tax advice and should not be interpreted as such. For decisions related to your business, always consult with your tax professionals, CPAs, or legal advisors.
The recently passed 2025 tax reform bill, the One Big Beautiful Bill Act, has wide-ranging implications for American businesses. For sign companies in particular, the changes create meaningful new opportunities for growth, innovation, and workforce development. Here, we break down what you need to know.
📈 1. Corporate and Individual Tax Rate Permanency
The new law makes the current corporate and individual income tax rates permanent. Previously set to expire under the 2017 Tax Cuts and Jobs Act, this stability allows sign companies and business owners to plan long-term without fear of rate hikes in the near future.
Key takeaway: Predictable rates = better planning for business investments and growth.
💰 2. Pass-Through Deduction Stays at 20%
While the House proposed increasing the pass-through deduction to 23%, the Senate rejected this, keeping it at 20% permanently. This is especially relevant for LLCs, sole proprietorships, and S corporations—common structures in the sign industry.
📅 3. Bonus Depreciation Made Permanent
Sign companies can now permanently write off 100% of qualifying capital equipment in the year of purchase. This includes manufacturing tools, printers, vehicles, and possibly digital display systems.
📊 4. Section 179 Deduction Extended
The Section 179 deduction cap is now over $2.5 million, and its enhanced version is extended for four more years. Businesses can deduct the full cost of qualifying property in the year it’s put into service, up to that limit.
Example: A sign company purchases $250,000 worth of new equipment—it can deduct the entire amount under 179 and/or bonus depreciation provisions.
“So with this example, it’s below the threshold. So you could basically take up to the full amount of the deduction in that first year.” — Dayo Adesuyi, Webster, Chamberlin & Bean
🔬 5. Enhanced R&D (Research & Development) Deductions
Big news for innovative sign companies: the bill includes enhanced provisions for R&D (or R&E: research & experimentation).
You can now:
- Immediately deduct domestic R&D costs in the year incurred (no amortizing)
- Apply to things like LED tech development, proprietary sign fabrication, or custom software
- Retroactively amend 2023 and 2024 tax returns to capture these benefits
“Sign companies that are investing in new technologies—like innovative LED displays, interactive signage, or advanced fabrication techniques—can now fully deduct the cost of that domestic R&D investment in the year incurred.” — David Hickey, ISA
🏛️ 6. Higher Estate Tax Exemption
For family-owned sign companies, the estate and gift tax exemption has increased to $15 million. This supports generational transitions—common in the sign industry.
👤 7. 1099 Filing Threshold Raised
Starting in 2026, businesses will only need to issue 1099s for contractor payments exceeding $2,000 (up from $600). This reduces admin burden, especially for companies working with many small vendors.
🏡 8. Workforce Benefits: Childcare and Education
🌟 Enhanced Employer Childcare Credit
Employers can now claim a 40% tax credit on up to $500,000 annually in childcare expenses.
This includes:
- In-house childcare
- Payments to outside childcare providers
“That’s what that would be designed for… payments made to third-party vendors.” — Dayo Adesuyi
Must be documented in a formal policy to qualify.
🎓 Expanded Use of 529 Plans
Employees and owners can now use 529 education savings accounts tax-free for:
- Technical certifications
- Continuing education
- Job-specific training
“This is definitely a good provision to be able to get those expenses in a tax-free vehicle like a 529 plan.” — Dayo Adesuyi
This empowers sign companies to invest in staff development and retention.
⏱️ 9. What’s Temporary?
Not all changes are permanent:
- Overtime pay changes expire in 2029
- State and Local Tax (SALT) deduction enhancements expire in 2030
- Both are likely to become political flashpoints in future congressional sessions.
🚀 Next Steps for Sign Companies
- Meet with a tax advisor to plan your 2025 return.
- Review past R&D expenses—you may be able to amend prior filings.
- Update HR policies if you want to offer tax-beneficial childcare or education support.
- Maximize equipment investments using bonus depreciation and 179 deductions.
- Keep an eye on inflation adjustments that may change deduction thresholds.