Author: Emily Howard

There is no universal roadmap for AI adoption. Different companies will do things… well, differently.  And that’s A-OK. The important thing is that you don’t let the wildness of the AI frontier scare you.We've seen contractors moving quickly from curiosity to active implementation of AI estimating tools across the commercial painting industry. To help those who either haven't started or might be feeling stuck on their journey, we interviewed some contractors who have safely arrived on the other side to gain some insights, some findings, and some words of warning. Here are some key findings. (The full article appears in the most recent issue of Commercial Painting Magazine.)Right SoftwareChoosing the right software is one of the biggest hurdles that contractors face. A strong needs assessment, research, and considerations of current software were noted as important legwork when making this important decision.Service Contracting Solutions in Florida implemented Kreo in July 2025, after a full year of evaluating software options. The process began with a robust assessment—identifying the needs, wants, and goals of leadership and estimators.Some of the most important attributes identified by the team were the practicality of the system: how software handled interior and exterior surfaces, whether it could properly exclude windows and doors, the turnaround time per blueprint sheet, and overall accuracy. Those operational details ultimately mattered more than any of the flashy marketing language (which they found plenty of) around AI capabilities.For Magnum Drywall, Kreo also hit all their practical needs, but conflicts with another software already used in-house ultimately pushed them to BuzzBID because it integrated more naturally with its existing workflow and felt more familiar to users already accustomed to On-Screen Takeoff (OST).Right PeopleThroughout the process, SCS noted the importance of involving the right people and ensuring clear communication to avoid confusion and frustration. Overcoming the mental hurdles of change and allaying concerns of downsizing ensured estimators were motivated to make the change and gave them a voice in choosing a software they would actually use.Instead of executives making a top-down technology decision, they intentionally placed estimators at the center of testing and selection.Even for those not centrally involved in the new technology, the company keeps open communication about technology decisions, focusing on explaining why changes were being made and explaining how the technology creates opportunities instead of eliminating roles. They even set aside time to listen to concerns so that solutions can be found together.Peer CollaborationFor Magnum, peer collaboration also played a huge role in their selection process. After SCS completed its Kreo implementation, the company openly shared lessons learned and even hosted demonstrations to help Magnum speed up its evaluation process.That willingness to share operational knowledge reflected a broader culture within the commercial painting industry—and particularly within the CPIA network—where contractors often help one another navigate emerging technologies rather than treating every process as proprietary.Words of WarningThough both contractors reported success with their adoption, they also warned of complications that required attention.Vendor claims. Contractors noted that many platforms marketed as “AI estimating software” contain only limited AI functionality. Before purchase, get your expectations in check, do thorough research, and don't forget reference checks.Training. This is not an out-of-the-box solution. AI requires a lot of training and refinement to teach the software how you estimate, communicate, and organize.Know Your Stack. As Magnum found out, not everyone plays together. Ensure that you have checked and double-checked that the new software doesn't conflict with what you already have in-house.Even though the processes were different, one thing was clear — AI estimating is no longer a distant concept. Contractors are actively testing it, refining it, and integrating it into real-world operations right now. Those who approach implementation strategically may gain significant advantages in speed, efficiency, and scalability moving forward.Want to read the whole article? Read A View From the Frontier in our latest issue.Want to learn more about shopping and troubleshooting AI estimating software from the people who have actually implemented it? Join us at the CPIA Leadership Conference in September for panel discussions and peer-to-peer conversations on the topic. Register today.

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, delivers substantial tax relief by making permanent many provisions from the 2017 Tax Cuts and Jobs Act while adding new incentives to encourage U.S. investment and business growth. For painting contractors—often operating as pass-through entities with heavy reliance on vehicles, equipment, skilled labor, and project-based cash flow, this legislation offers immediate opportunities to improve liquidity, accelerate equipment upgrades, and reduce overall tax burdens amid rising material and labor costs.Permanent 20% Qualified Business Income (QBI) Deduction (Section 199A)  The Qualified Business Income Deduction was signed into law as part of the Tax Cuts and Jobs Act. It allows owners of eligible entities to deduct up to 20% of their qualified business income for tax purposes (subject to limitations and phase-outs). This can lower the effective federal tax rate for these business owners in the highest tax bracket to 29.6% from 37%.  While originally set to expire at the end of 2025, the OBBBA made this deduction “permanent”. Many painting businesses qualify as non-Specified Service Trade of Businesses (SSTB), thus allowing them to capitalize on this deduction. There are numerous limits and phase-outs, so it’s important to review how this applies to your tax strategy, including the current owner compensation structure, to maximize this benefit while maintaining reasonable compensation under the IRS guidance. 100% Bonus Depreciation and Expanded Section 179 Expensing OBBBA permanently restored accelerated depreciation or expensing for qualified property (e.g., paint sprayers, scaffolding, lifts, pressure washers, trucks, trailers, and certain building improvements). These rules allow for immediate full write-offs of major purchases, freeing up cash for fleet modernization, safety gear upgrades, or technological investments. Business Interest Deduction Relief (Section 163(j))The limitation reverts to an EBITDA-based calculation, adding back depreciation and amortization in coming up with Adjusted Taxable Income. This benefits contractors financing vehicles, equipment, or shop expansions, increasing deductible interest and reducing carryforwards—especially helpful for capital-intensive operations with loans for growth. SALT Cap Increase and PTETSince the Tax Cuts and Jobs Act was signed into law, the deductibility of State and Local Taxes (SALT) has been limited to a maximum of $10,000 on an individual’s tax return. During this time, several states enacted Pass Through Entity Tax (PTET) regimes that allow owners of pass-through entities to pay (and deduct) the state's taxes related to their business income on their pass-through return.  The Pass-Through Entity Tax (PTET) election remains available, allowing businesses in high-tax states to pay state taxes at the entity level and claim a federal deduction—often saving at the post-QBI marginal rate (around 29.6%). Even with the increase in the SALT limitation for many individuals, it still may be advantageous to utilize the PTET. The One Big Beautiful Bill Act (OBBBA) represents a transformative opportunity for painting contractors in 2026 and beyond. By making permanent the 20% Qualified Business Income deduction, restoring 100% bonus depreciation and expanding Section 179 expensing, easing business interest limitations, and providing continued flexibility with PTET elections, this legislation directly addresses the unique challenges of capital-intensive, labor-driven businesses, helping to preserve cash flow, fund essential equipment upgrades, and mitigate the pressures of inflation in materials and wages. Painting contractors who act proactively—reviewing their entity structure, compensation strategies, and upcoming capital expenditures with a qualified tax advisor—can maximize these benefits to enhance competitiveness, support growth, and build long-term financial resilience in an evolving economic landscape. This article is for informational purposes only and does not constitute tax or legal advice. Consult a qualified CPA or tax professional for guidance tailored to your specific situation. About the AuthorCaleb Lendy, CPA, MST, is a Shareholder at Bronswick Benjamin P.C., a Chicagoland-based certified public accounting and advisory firm specializing in tax solutions, assurance, and business advisory services for privately held companies. With extensive experience serving small and medium-sized businesses across key industries—including manufacturing, distribution, software and information technology and professional services, Caleb brings deep expertise in tax planning, compliance, and strategic financial guidance. He excels at helping clients navigate complex tax landscapes, optimize profitability, manage cash flow, and adapt to evolving regulations, acting as their trusted advisor. A graduate of Loyola University with a B.A. in Accounting (Summa Cum Laude), Caleb also holds a Master of Science in Taxation (M.S.T.) from DePaul University. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Illinois CPA Society.