Author: Emily Howard

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.  

AI-powered search is changing the digital visibility of commercial painting contractors. To ensure that CPIA members are up to date on the latest strategies for optimizing both traditional search and AI-powered search, Aaron Hockel of Alta Vista Strategic Partners hosted a webinar for members to shed light on the evolving online landscape.What is the difference between AI search and traditional search? In short, traditional search delivers a list of links, whereas AI-powered searches serve up more conversational, direct answers.The shift in format is not as important as the increasing number of places potential customers can search. Instead of simply optimizing for Google’s algorithm, commercial contractors will have to optimize for multiple AI-platform algorithms as well.Hockel tested results across Google, ChatGPT, Grok, and Gemini, specifically searching “painters near San Diego Airport.”  Searches on four platforms resulted in four different lists. Only one company ranked in all four searches.The consistent performer had strong traditional SEO metrics, including high domain authority and significant backlinks. Why does AI search matter to commercial painting contractors?AI platforms are growing exponentially. The good news is that traditional search engines are still commanding more traffic with Google and YouTube in the lead (for now).That said, the younger generation is increasingly turning to ChatGPT over Google. What kind of content should commercial painting contractors publish to rank in AI?Ranking in AI is still relatively new. While no one has the silver bullet, there are some clear patterns.Write FAQs. Because this style of content is easy to parse and summarize, it’s favored by AI. By adding FAQs to service pages, using clear, direct language, and including numbers and price ranges where appropriate, you make it more likely that AI will take notice (note the subheads in this very article).Demonstrating credibility is also extremely important. Hockel recommends using the acronym EEAT — Expertise, Experience, Authoritativeness, Trust — as a guide: Expertise – Include author bioswith credentials and years of experience.Experience – Use project profiles to demonstrate your experience.Authoritativeness – Publish industry recognition, awards, news stories in industry publications, and certifications. Publishing your involvement with industry associations, like the CPIA, can help with authority.Trust – Highlight that you are insured, and bonded, and blog about your safety standards and safety records. Don’t forget your service area. Local business information is important for both traditional and AI search. Setting up local service pages that have examples of projects done in those areas is a great way to highlight the areas where you are active.Make sure your information on the yellowpages.com, 411.com, Bing, Yahoo, and chambers of commerce directories is up to date and consistent. How important are online reviews for commercial painting contractors?Reviews are a major factor in establishing visibility and credibility. AI systems rely heavily on publicly available third-party signals.Commercial clients like GCs, government agencies, and corporations don’t typically leave reviews (some are not permitted to leave reviews); however, that doesn’t matter to AI platforms. The bottom line is that reviews are a major signal to algorithms that your brand is trustworthy, so it’s wise to make a plan to keep those reviews coming in.Let clients know early on that you will request a review once the job is complete. Adding a step to your final walkthrough to ask for the review (you can give them a QR code) is one option, and you can also include review links on invoices and email signatures. Hockel also noted the importance of sending reminders, as they can greatly increase the likelihood that a client will leave a review.When you are asking for reviews, consider that platform diversity matters. Google reviews are still king, but it’s important to get reviews on other platforms as well. Staying Ahead of the CurveIn the end, you want to continue to follow strong SEO practices to ensure that you are not only showing up in traditional search but on the plethora of AI platforms popping up. Investing now in the tactics that help you rank across all search engines is essential to your online marketing success.For more insights and strategies, listen to the full webinar here. Aaron Hockel is a partner at AltaVista Strategic Partners, which specializes in helping commercial contractors stay visible, relevant, and ready to win. Learn more at altavistasp.com.

Email Marketing has the highest ROI of all digital marketing channels. With an average ROI of 42:1, there is no reason your Commercial Painting Business shouldn’t be investing in this marketing strategy. Currently, many of the commercial painting contractors that come to use email marketing in some form; however, most are not seeing success. When it comes to email marketing, the devil is in the details. Practice the ABCs of email marketing to ensure your time and money are well spent, and you don’t end up in Gmail jail. Adhere to Responsible Sender Practices Email may seem like a cheap and easy way to reach prospects, and used properly, it can be. However, even though sending emails generally costs a fraction of a penny, it can quickly turn into money and time down the drain if your emails just go to spam.Rule One: Only send to validated emails. Fake, mistyped, or outdated emails are the silent killer of any email strategy. Not only do these invalid emails bounce, but those bounces send a big red flag to email clients, like Gmail, that you are sending spam. Most email sending platforms have a feature built in that checks emails and automatically filters our invalid emails. If yours doesn’t, check out NeverBounce. They can confirm which emails are valid and which are unreachable.Rule 2: Warm up your IP and don’t let it go cold. If you are just beginning to send emails or if you haven’t sent emails from your email sending platform in a while, it’s important to plan a warming period. During this period, you’ll send your emails in small batches starting with your most engaged list with the goal of nearly perfect deliverability and high engagement. Done correctly, you’ll keep a good reputation to email clients and land your emails where people can actually read them.Rule 3: Comply with all local and federal laws.The FTC has a federal law called CAN-SPAM that sets rules for email marketing. In short, this act prohibits businesses from using misleading information in the subject or body of the email and requires easy opt-out/unsubscribe options for the recipient. Be sure that your emails are relevant to your audience and contain an unsubscribe link. Build High-Quality Email List Most painting contractors we talk to do not have an organized contact list, or if they do, it’s extremely small (only a couple of hundred contacts). Spending some time building out these lists can pay back in dividends if you do it smart.First-party contacts: Any lead you directly capture is a first-party contact, and they are the most effective and highly converting leads you can get. They can be customers, sales prospects from networking, or anyone who has filled out lead forms you build for your website or social. Think of your first-party data as the list of people who have already bought or established buyer intent.Second-Party Contacts (JV Partnerships): There are two ways to get second-party contacts. 1.) As you’ve built your business, you’ve likely built some solid relationships with other trades serving the same market. Building a partnership where you can refer each other or share prospects or customers can be beneficial to both parties. These are generally high-quality contacts, but they can take a lot of legwork as you’ll need to negotiate a partnership agreement and both parties need to deliver. 2.) Another place to get second party contacts is through tradeshows where the operator shares a list of attendees.Third-party contacts: You can purchase third-party email lists from data aggregators to quickly build up a mailing list of prospects (other business owners) in your local market. This option expedites the process, but you’re purchasing cold leads, so response rates will be lower and bounces likely higher. Because of this, we recommend a minimum volume of 10,000 cold contacts to see a return. Create Content People Want When They Want It In email, quality wins the day. Emails that get opens, engagement and truly speak to your customer are what ultimately drive results. Keep a close eye on content, frequency, and KPIs.ContentThe best emails have the following traits:Captivating Subject Line: Spend most of the time on this. Keep it to 30–50 characters or 4–7 words.Personalization: Don’t send to anyone if you don’t have their first name. You MUST call this out in the opening of the email body.Body: Keep the body of the email short and sweet. A few single-spaced sentences will do!CTA: Your call to action should only request that they call or reply to the email. Avoid estimate links (see below).Avoid Overusing Images & Links: Using these elements can increase the likelihood of ending up in a SPAM filter.Simple Signature: Include your name, business name, and phone number. That’s it.Watch Your FrequencySending too many emails leads with low open and engagement rates, ultimately lands you in the junk folder. We recommend sending no more than once or twice a month, especially in the beginning. Consistency over an extended period of time is the key to success here.Measure Email Marketing ResultsOf course, you’ll only know what works for you if you test and measure. Here are some metrics to keep an eye on:Delivery rates = quality of your domain.Bounce rates = quality of your mailing list.Unsubscribe rates = if you’re sending emails too often, or sending a message that does not resonate with contacts.Open rates = subject lineResponse rates = effectiveness of your email content.Reply/Conversion rate =overall effectiveness of your email marketing campaigns. Assess number of replies or outreach requests over a 12-month calendar year.Most painting contractors overlook email marketing as an effective tool to drive leads, brand, and sales. Don’t miss your opportunity to leverage this.About the AuthorAustin Houser is the founder and Chief Brainiac at Base Coat Marketing, a marketing agency dedicated to serving painting and coating contractors with unmatched digital marketing experience. To find out more about how Base Coat Marketing can help in your business growth, email basecoatmarketing.com/call