SIA Shares Key Industry Priorities for U.S. Tax Reform and Workforce Development Legislation

By Lauren Bresette, Senior Manager, Government Relations, Security Industry Association on March 25, 2025 | , |
tax reform concept

On March 21, 2025, the Security Industry Association (SIA) sent a letter to the chair and ranking members of the House Committee on Ways and Means and the Senate Committee on Finance expressing strong support for congressional legislation to restore and extend certain pro-growth business tax and workforce development policies that are essential to support firms in the security industry. This action comes as Congress considers next steps on how to fulfill President Trump’s campaign promises – including extension of his 2017 tax cuts and restoration of related provisions – through the “budget reconciliation” process.

Among other critical tax policies, SIA is supporting:

  • Deduction for R&D expenses: A full restoration of the research and development (R&D) tax deduction to encourage research and innovation across the U.S. industrial base. The law currently requires that businesses amortize R&D expenditures over five years (15 years for foreign R&D). By restoring this deduction, firms will again be able to fully deduct the cost of new R&D expenses in the years that they occurred.
  • 100% bonus depreciation: Restoring and making permanent a provision from the Tax Cuts and Jobs Act (TCJA) of 2017 that allowed 100% expensing for business property. This temporary provision only applied to property acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2023. Making this provision a permanent feature of the U.S. tax code will help to increase business investment and create better opportunities for workers.
  • Cap on EBITDA deductions: Restoring and extending the TCJA 163(j) limitation on business interest expense deductions to include depreciation and amortization. Since January 2022, interest deductions have been limited to 30% of earnings before interest and tax (EBIT). Including depreciation and amortization (EBITDA) in the calculation of earnings will help capital-intensive companies to debt finance and grow their businesses.
  • Tax rates for pass-through entities: Extending the Section 199A deduction allowing pass-through entities to deduct up to 20% of their qualified business income in determining their taxable income. This section expires on Dec. 31, 2025. Extending the deduction will continue to encourage increased investment by pass-through entities along with increased hiring and wage growth.
  • Expanded eligible uses for 529 plans: the passage of the Freedom to Invest in Tomorrow’s Workforce Act that would permit the use of 529 account funds to pay for postsecondary training programs. This will help more Americans obtain and retain well-paying jobs that don’t require a traditional four-year degree, a critical labor sector within the security industry.

These provisions are essential to U.S. security firms, including startups, that are leading the way in technical innovation, as well as helping businesses of all sizes expand their workforce and make investments in facilities and equipment that improve safety and security for their employees and consumers. SIA will be advocating for these provisions to be included in a final tax package that is considered as a part of the budget reconciliation process. If you have any questions or comments, please don’t hesitate to reach out to Lauren Bresette, senior manager of government relations at SIA, at lbresette@securityindustry.org.