For contractors, getting bonded opens doors. For owners, it provides a level of protection they would not otherwise have. Understanding what the different bonds actually do can help construction companies prepare and get ahead of any requirements. To help clients, prospects, and others, Wilson Lewis has summarized the key details below.

What Is a Construction Bond?

A construction bond is a financial guarantee. If a contractor does not meet its contractual obligations, the bond gives the project owner or other affected parties a way to recover. What makes bonds different from insurance is who they are designed to protect. Insurance protects the person or company that buys the policy. Bonds protect everyone else. 

Three parties are always involved. The contractor purchases the bond, the project owner receives the protection, and the surety evaluates the contractor before agreeing to back them. 

What Are the Types of Construction Bonds?

One thing that surprises some contractors is how many bonds a single project can require. That is because different bonds serve different purposes at different stages, from the initial bid all the way through the warranty period after construction wraps up.

Bid Bonds — Bid bonds are typically the first bond a contractor encounters on a project. They give the project owner confidence that a contractor submitting a bid is serious about the opportunity and intends to sign the contract. Without a bid bond, an owner has little recourse if a contractor wins the award and then walks away. The bid bond addresses that risk directly and signals that a surety has already taken a look at the contractor and is willing to stand behind them at this stage.

The cost of a bid bond varies by contractor, surety, and project. Some sureties charge a small fee or a percentage of the bid amount. Others may provide bid bonds at little or no additional cost as part of an established bonding relationship.

Performance Bonds — Once a contract is signed, the performance bond guarantees that the contractor will complete the project according to the terms of the contract. Public projects almost always require one, and larger private projects frequently do as well.

If a contractor defaults, the owner files a claim with the surety. Depending on the circumstances, the surety investigates the claim and takes steps to resolve the situation. That may include financial compensation for the project owner. 

There is a secondary benefit that sometimes goes unmentioned. Getting a performance bond means a surety has already looked at a contractor’s finances, experience, and track record. As a result, a performance bond can provide additional assurance because it’s clear that the contractor has been vetted by an independent third party.

Premiums are usually calculated as a percentage of the contract value, with industry rates ranging from 1-3% for well-qualified contractors.

Payment Bonds — Performance bonds cover whether the work gets done. Payment bonds cover whether the people doing the work get paid. They protect subcontractors, suppliers, and laborers if a contractor fails to make good on what it owes them.

On public projects, payment bonds are usually required right alongside performance bonds. The two often go hand in hand. Owners benefit because unpaid subcontractors may create disputes and liens that can go on long after project completion. Subcontractors and suppliers benefit because they have a way to be paid, even if the general contractor doesn’t follow through.

Like performance bonds, payment bonds are underwritten based on the contractor’s overall risk profile, including financial strength, experience, credit history, and project performance.

Maintenance Bonds — Most of the bonding conversation centers on what happens before and during construction. Maintenance bonds are about what happens after. Sometimes called warranty bonds, they guarantee that the contractor will come back and fix defects in workmanship or materials that surface during the warranty period. A 12-month term is typical, though contracts vary.

Not every project requires a maintenance bond. They are driven by contract language rather than statute, so whether one is needed depends on what the owner puts in the agreement. When they are required, the owner is asking that the contractor stand behind the finished work. 

Preparing for Bonding Requirements

Before any bond gets issued, a surety is going to take a close look at the contractor requesting it. Most evaluate what the industry calls the Three Cs: Character, Capacity, and Capital.

Character covers reputation, credit history, and track record. Has the company met obligations in the past? Are bills paid on time? Capacity is about whether the company has the people, equipment, and experience to complete the project. Capital is finances, including cash flow, profitability, and debt.

The size of the project also becomes a factor. Smaller projects may rely mostly on credit history and basic financial information. Larger projects typically require CPA-prepared statements, work-in-progress (WIP) schedules, and detailed construction-specific reporting. Because of this, construction companies are encouraged to work with advisors to prepare for the bonding process. 

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Each bond serves a different purpose at a different stage of a project. Contractors who understand the types of bonds are better positioned to answer customer questions, meet obligations, and maintain a competitive edge. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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What Is an Automation ROI Analysis?

An automation ROI analysis helps manufacturers determine whether an automation investment is worth the cost before moving forward with a project. The analysis starts with the total investment itself. Equipment is only part of the number. Software, integration, installation, training, maintenance, and infrastructure upgrades can all affect the final cost.

From there, manufacturers estimate what the automation may improve across the operation. Common areas include labor costs, throughput, downtime, scrap, rework, and production capacity. A basic ROI calculation compares total investment cost to expected annual savings:

Automation ROI Payback Period = Total Investment Cost / Net Annual Savings

Many manufacturers target a payback period of two to five years. But expectations may vary depending on the reason for the investment. A full plant modernization effort is going to be a different payback period than automating one process or product line, for example. It is important to note that not every process is a strong automation candidate. Repeatable and high-volume processes often produce better returns than workflows that change frequently or involve customization.

What Manufacturers Evaluate During Automation ROI Analysis 

There are a few major categories that should be involved in any automation ROI analysis, including: 

Efficiency and Productivity — Operational performance is often one of the largest parts of the automation ROI analysis. Manufacturers first evaluate if the proposed automation can reduce bottlenecks, shorten cycle times, and improve throughput across the facility.

Other KPIs reviewed early in the process include scrap and downtime. Material costs are only going up, and industry reports estimate that unplanned downtime may cost up to 11% of annual revenue. ROI discussions also look at whether projected productivity gains are enough to offset costs. Some estimates say productivity improvements can be up to 30-50% with automation. Actual results vary, depending on other factors. These figures would need to be pressure-tested for each plant before expecting specific returns. However, the cost of inaction should also be considered.  

Safety — This is another area manufacturers look at during an automation ROI analysis. Welding, material handling, packaging, and loading operations are common examples because they often involve repetitive motion, heavy lifting, hazardous materials, or dangerous equipment.

Part of the analysis is measuring whether automation could help reduce workplace incidents and the operational disruption that follows. Industry benchmarks show that there are about 2.7 safety incidents per 100 full-time manufacturing workers, and the average workplace injury costs roughly $48,000. Production delays can push costs even higher.

Safety improvements can also affect the workforce itself. In many facilities, reducing exposure to higher-risk tasks may help improve morale, lower stress, and make physically demanding jobs easier to retain and staff over time.

Workforce — The workforce is becoming a bigger part of automation ROI analysis. More than 12 million people work in the manufacturing sector, but many manufacturers still struggle to fill skilled positions and manage rising overtime costs.

Industry reports estimate that nearly 1.9 million manufacturing jobs could go unfilled over the next decade if labor shortages continue. The National Association of Manufacturers (NAM) recently reported that attracting and retaining workers is one of the industry’s biggest challenges. Because of this, manufacturers may evaluate whether automation can help reduce overtime, support production schedules, and lessen dependence on hard-to-fill positions. In some facilities, automation is also being evaluated as a way to maintain more consistent output when staffing shortages disrupt production.

Risks — Manufacturers also evaluate hidden costs and implementation risks that may affect the total return. For example, there are often additional costs beyond equipment purchase price. When looking at high-tech automation solutions, updates will be needed for existing infrastructure and software. Plant workers will need training on new machines or processes. There may be new maintenance schedules to consider along with the temporary disruption to production as new automated processes roll out. This can all increase project cost or delay savings.

For these reasons, many manufacturers start with a pilot project or phased implementation. This can help plant leadership identify any change management issues and better estimate long-term costs before committing additional capital.

Tax Considerations

Tax strategy can affect the total cost of the investment. For example, Section 179 expensing and new bonus depreciation rules may allow manufacturers to accelerate deductions on qualifying equipment purchases instead of recovering those costs over a longer depreciation schedule. R&D credits or deductions may also be available, depending on the nature of the work. Many manufacturers model multiple scenarios with advisors before approving a project. This leads to a better understanding of projected costs, cash flow, and long-term impact.

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Investing in automation is a major strategic decision. An ROI analysis can help show upfront costs against long-term gains, which is essential for success in today’s manufacturing environment. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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In response, U.S. Customs and Border Protection (CBP) developed the Customs Automated Processing Environment (CAPE) refund process to manage claims and process payments. CBP has stated that more than $166 billion in IEEPA duties were collected from at least 330,000 importers before the rulings. Refunds are now moving through the CAPE system, but CBP is also warning businesses about scams and fraudulent activity tied to refund processing and payment requests. To help clients, prospects, and others, Wilson Lewis has summarized the key details below.

Background and Key Stats

CBP officially launched the IEEPA tariff refund process on April 20, 2026. The new system is called CAPE, and it’s part of the ACE Secure Data Portal that existed previously. This is the only way for businesses to request the removal of IEEPA duties from eligible entries and receive a refund, if found eligible. 

CBP has been providing operational updates to CIT as the agency works through millions of affected entries. CBP reported the following statistics to CIT on May 11, 2026:

• 126,237 claims submitted. These are the refund claim packages filed by importers through the CAPE system. One claim can include many entries. 
• 86,874 claims passed file validations. These claims passed the initial system check and included the required information.
• 15,123,221 entries accepted for IEEPA duty removal. These are individual customs entries tied to the claims that passed the review stage and were determined eligible to have IEEPA duties removed.
• 8,338,081 entries liquidated and/or reliquidated without IEEPA duties. These are the entries that CBP has already processed and are moving to the refund stage. 
• 1,880 refunds delayed because ACH information has not been provided. These are refund payments that cannot move forward because CBP does not yet have valid ACH payment information for the importer.

CBP also stated that many processed entries are still being consolidated by importer of record and liquidation date before transmission to the Department of the Treasury for payment. Another update is expected in the coming weeks. 

Note: Businesses should also understand that the IEEPA refund process is separate from the ongoing Section 122 tariff litigation. The Trump administration’s Section 122 tariffs are still being collected while litigation continues, as of May 19, 2026. 

Refund Process

CBP created the CAPE system to manage the massive volume of refunds tied to the IEEPA tariffs. According to CBP, the system is designed to process claims on an importer or on a bulk basis rather than handling refunds individually. Refunds are not issued automatically. Businesses seeking refunds must file claims, identify affected entries, and provide supporting documentation through the CAPE process. Businesses planning to receive refunds electronically should also confirm they are enrolled in ACH Refund, which CBP requires for electronic duty payments.

CBP has also published an updated CAPE user guide. The guide includes screenshots and filing instructions to help businesses submit IEEPA refund claims correctly.

Fraud Warnings and Best Practices 

CBP has issued a warning to businesses on the possibility of scams and other fraudulent activity related to the refund process. The agency expects scammers to use social media, email, text, and other methods to get account information from importers or authorized providers. 

Individuals should beware of anyone who says they will file for an IEEPA refund on behalf of the business. In these cases, the scammer generally asks for personal along with banking information. Businesses are encouraged to only provide these details to trusted advisors and to use secure channels when doing so. Individuals should also use only verified accounts through the ACE Secure Data Portal to submit for a tariff refund. Businesses are advised not to enter information into any other website that claims to be processing IEEPA refunds. 

As a reminder, CBP will not contact a business or individual to ask for social security numbers, bank account information, or passwords. If an email claiming to be from CBP is received, review the email with an advisor before responding or clicking on any links. It may be a phishing scam. Businesses can reduce the risk of falling victim to fraud by staying vigilant and monitoring relevant accounts for suspicious activity. 

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The IEEPA refund process is ongoing. CBP likely still has millions of entries to process and billions of dollars in anticipated refunds and interest to issue. Businesses will want to review customs documentation and compliance processes before submitting a claim. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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What’s a Nonprofit Budget?

A nonprofit budget is the organization’s financial plan for a defined period, typically one fiscal year. It makes projections for both revenue and expenses and aligns them with the organization’s mission and strategic priorities. Some budgets also account for potential risks and different economic scenarios. 

The budget is primarily used for planning purposes inside the organization. However, nonprofits are encouraged to develop the budget with the Financial Accounting Standards Board (FASB) rules in mind. These rules require separating restricted from unrestricted funds, along with specific rules for reporting expenses and liquidity. The annual Form 990 uses similar classifications. When a nonprofit aligns the budget with the reporting requirements from the start, it’s easier to prepare accurate year-end reports. 

Key Components of a Nonprofit Budget

Most nonprofits have budget line items for projected revenue, expenses, and contingency funds. 

Revenue can come from several sources, and it should be categorized appropriately in the budget. Donations commonly include individual monetary gifts and in-kind contributions such as non-cash assets like stocks or even cryptocurrency. Other traditional sources include public and private grants, which are often made with restrictions. For example, a grant made for a summer youth program can’t be used to cover unrelated administrative costs. More established nonprofits may also have investments to track and record, including bonds, mutual funds, and any interest earned from endowments. 

More nonprofits are also exploring corporate philanthropy, with many businesses increasing sponsorship budgets for the year. Still others have earned income sources from membership dues, fees for certain services, or merchandise sales. Earned income also includes activities like selling advertising space in a quarterly newsletter or renting out a facility. In some cases, that type of activity may be treated as unrelated business income (UBI) and subject to tax. 

Expenses generally fall into program, fundraising, and administrative categories. Program expenses are frequently the largest share of spending because they directly support mission delivery. Fundraising costs usually include activities like marketing and event planning. Administrative costs support the indirect support needed to sustain those programs, which includes expenses like office staff, utility bills, and rent. Fundraising and administrative expenses are often referred to as indirect costs or overhead. 

However, it’s important to note that views on “overhead” costs are changing. It used to be that nonprofits were advised to keep over to less than 35% of overall spending. The idea was that very low overhead spending meant that more money could be directed to program activities. But donors are expressing more interest in impact as a measure of effectiveness. For that reason, more nonprofits are including cost-per-outcome measures to help donors understand how resources translate into results.

Nonprofit budgets should also include operating reserves or contingency funds. These are the funds set aside to support operations if revenue unexpectedly declines or funding is delayed. A liquidity policy can be used to establish a target reserve level, with most nonprofits aiming to keep at least three to six months of operating expenses in reserves.  

There’s a common misconception that nonprofits must have a balanced budget, but that’s not always the case. An organization might be planning for a surplus to build reserves, or they might temporarily operate at a deficit to invest in staffing or technology. Either way, leadership should understand the long-term goals, and those goals should be reflected in the budget. 

Best Practices

Nonprofits are going to have different processes for creating a budget, but there are a few best practices to keep in mind: 

• Be proactive. It can take several months to form a budget, and the goal is to have a budget approved by the board before the start of the fiscal year. That means gathering input from staff members early. Development can provide a conservative estimate on fundraising, and program managers can provide an idea of both direct and indirect costs. That forms the basis for revenue and expense projections, though it’s helpful to work through the numbers with an accounting professional for more accurate results. 
• Review the budget monthly or quarterly. A budget is an ongoing process that should be revisited several times throughout the year. Monthly variance reports compare budget-to-actual results and can provide a window into emerging risks or opportunities. For example, cash flow timing might be different from what the nonprofit expected. Grants may have been terminated or needs may have increased. A regular review and scenario planning gives the nonprofit a way to course correct ahead of any major funding issues. 
• Consult with advisors. The budget process is generally led by a CFO, controller, or outsourced accounting team, who works with executive leadership and the board of directors. This ensures that the budget follows accounting standards and meets strict nonprofit requirements. They may also use advanced forecasting tools to make budget projections, which gives the nonprofit a more realistic starting point for planning mission delivery.

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A nonprofit budget should do more than track revenue and expenses. It should help leadership understand the organization’s financial position and support better decision-making going forward. If you have questions about the information outlined above or need assistance with another nonprofit audit or budgeting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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What Is Construction Insurance?

Construction insurance is not a single product. It is a group of policies designed to respond to different situations. One jobsite incident can involve an employee injury, property damage, and a third-party claim at the same time. Separate policies respond to each part of the event. Contractors often carry several types of coverage to address the full range of risk.

Most policies do not cover intentional acts, fraud, normal wear and tear, and poor workmanship. Because exclusions vary by policy and carrier, contractors should review coverage carefully to understand what is protected and not protected by the policy.

Types of Construction Insurance 

• Workers’ Compensation — Workers’ compensation is required in most states. It covers employees who are injured or become ill because of the job. Benefits include medical costs, partial wage replacement, disability payments, and death benefits. It’s important to note that falls account for about 40% of construction fatalities. Other common causes for injury include heavy equipment accidents and workers struck by vehicles or falling materials. Because these risks are part of everyday jobsite work, workers’ compensation is one of the most important policies a contractor carries.
• General Liability — General liability protects the company when someone outside the business claims injury or property damage caused by the company’s work. This can include a pedestrian walking past a jobsite, a client visiting the project, or damage to a neighboring property. In many states, general liability coverage is required to have an active contractor license. Even when it’s not required by state law, it is expected by most clients and lenders.
• Commercial Auto — If a construction company owns or operates commercial vehicles, it must carry liability coverage for those vehicles under state law. Commercial auto insurance covers injuries or deaths caused by company vehicles, damage to other vehicles or property, and related legal costs. Roadway crashes remain a leading cause of workplace fatalities, and OSHA reports that roughly one in four struck-by deaths involve a construction worker, often tied to trucks or heavy equipment.
• Builder’s Risk — Builder’s risk insurance covers damage to the structure under construction. Common causes include fire, severe weather, vandalism, and some instances of theft. Some policies may also cover on-site tools, equipment, and materials. For additional coverage in this area, contractors may want to consider inland marine insurance. This coverage applies when those items are stored off-site, moved between jobs, or in transit. Equipment and material theft losses are estimated at $1 billion annually.
• Professional Liability (Errors and Omissions) — More contractors are entering the design-build business, making professional liability insurance more necessary in recent years. It generally covers claims related to design and engineering errors.
• Subcontractor Default Insurance — On large commercial projects, a general contractor may be managing hundreds of subcontractors. This insurance may cover financial loss when a subcontractor does not complete the agreed-upon work or meet project specifications.
• Pollution Liability — Not every contractor needs separate pollution coverage, but if the work involves hazardous materials, it’s worth considering and may even be required by the contract. Pollution liability insurance helps cover cleanup costs and claims tied to contamination or chemical exposure. General liability policies usually do not cover these types of losses. 
• Umbrella Insurance — Umbrella insurance provides additional coverage when claims exceed the limits of other policies. Policies range from $1 million to $10 million in coverage at relatively affordable rates.
• Wrap Insurance — Wrap insurance programs provide coverage for general contractors and subcontractors. It typically includes workers’ compensation and liability coverage under a single policy. 

Frequently Asked Questions 

Who is required to carry construction insurance?

Requirements depend on state law and the contract. Most states require workers’ compensation once a company has employees. General liability and commercial auto coverage are often required by project owners, general contractors, or lenders before work begins.

How much does construction insurance cost?

The cost depends on several factors, including company size, claims history, type of work, and location and size of the project. Higher-risk trades, such as roofing, demolition, steel erection, excavation, or concrete, typically have higher costs than other types of trades.

Why are there so many types of policies?

Construction risks often overlap. A single accident could involve an injured employee, damaged property, and a third party who files a claim. Workers’ compensation would address the employee’s injury. General liability would respond to the third-party claim. Commercial auto may apply if a vehicle was involved. If the total claim exceeds those limits, umbrella insurance may provide additional coverage.

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A comprehensive risk management program includes different types of insurance to minimize potential loss. Because coverage requirements and exposures change as a company grows, periodic review is recommended. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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What’s an Employee Benefit Plan Audit?

An employee benefit plan (EBP) audit is an independent review of a plan’s financial statements and operations. It tests to see if the plan is functioning in accordance with its governing documents and ERISA requirements. Common plans subject to audit include:

• 401(k) plans
• 403(b) plans
• Defined benefit pension plans
• Employee stock ownership plans (ESOPs)
• Certain health benefit plans

In general, plans with 100 or more eligible participants at the beginning of the plan year are considered large plans and must include audited financial statements with the annual Form 5500 filing. For retirement plans, the 80-120 participant rule provides some flexibility, allowing a plan to continue filing in the same category as the prior year as participant counts fluctuate. Plans with fewer participants are typically treated as small plans and may file without an audit

What ERISA Auditors Are Looking For

An audit typically involves direct interaction with the staff members responsible for plan administration. Auditors use this time to understand how the plan operates day-to-day, including internal controls, payroll processes, and areas where errors or noncompliance are more likely to occur.

Fieldwork also includes detailed testing. Auditors select samples of plan activity and request supporting documentation to confirm that transactions were handled correctly and in accordance with plan provisions. Within that process, auditors review several high-profile areas, including: 

Plan Documentation — Plan documents need to reflect the way the plan is administered. If a law is changed or an amendment is issued, the plan must be updated accordingly. Auditors often review operations against the plan to check for alignment. Plan sponsors may want to consider running a quarterly check-up to ensure that new rules, like those from SECURE 2.0, have been implemented and recorded correctly. 

Auditors also look to see that plan fiduciaries are actively overseeing the plan and that decisions are being made in the best interest of participants. This may include reviewing meeting minutes and any other communication related to plan administration. 

Eligibility and Plan Participation — Participant data needs to be accurate in the system. Dates of birth, hire dates, termination dates, and hours worked determine when employees become eligible and how benefits are calculated. This includes employees who qualify under long-term, part-time (LTPT) rules. Auditors review this information closely because errors can lead to a host of problems, including inaccurate retirement contributions. This type of error is usually caused by simple data entry mistakes. Standardized procedures or investing in automated systems across departments can help increase compliance.

Remittance of Contributions — DOL rules state that contributions must be remitted as soon as reasonably possible after being withheld from payroll. Delays in depositing employee deferrals or employer contributions can result in serious compliance issues. There are two proactive opportunities for correction before the audit, including the Self-Correction Program and the Voluntary Fiduciary Correction Program. Even with correction options, late remittance remains a common audit finding. Penalties and interest may apply.

Nondiscrimination Testing — Retirement plans must pass nondiscrimination testing to show they do not favor highly compensated employees (HCE). An HCE is generally someone who owns more than 5% of the company or earned more than $160,000 in the prior year (for both 2025 and 2026). Employers may also use a top-paid group election to limit HCE status to the top 20% of employees by pay. 

Auditors review plan documents to see that all employees are classified correctly, and they also review the average contribution percentages for each group to confirm they fall within permitted limits. If the plan fails testing, it must be corrected immediately. Penalties may be issued, depending on the timing of the correction. 

Form 5500 Reporting — Most plans must file Form 5500 each year. When auditors are involved, they review the form to confirm that financial data, participant counts, and required disclosures are consistent with the audit. Form 5500 is generally due July 31 following the end of the plan year, unless an extension is filed.

Preparing for an EBP Audit

For a successful EBP audit, plan sponsors may want to take the following actions: 

• Maintaining a year-round compliance calendar and assign roles and responsibilities.
• Automate record-keeping systems between accounting, payroll, human resources, and any third-party administrators.
• Gather key records related to plan administration and employees.
• Conduct a self-assessment before the audit to help catch plan operating and financial errors before they become an audit finding.
• Stay up-to-date on regulations and notices issued by the DOL and the IRS.
• Coordinate with advisors throughout the year, not just at audit time.

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Understanding what EBP auditors review can make the process more efficient and reduce the risk of complications or worse penalties. Working with an experienced plan auditor can streamline the process. If you have questions about the information outlined above or need assistance with your next benefit plan audit, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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• Georgia’s individual income tax rate reduction is being accelerated to 4.99% for 2026, with a structured path to 3.99% by 2034. Significant updates include a Georgia standard deduction increase to $15,000 for individuals and $30,000 for joint filers by 2027, alongside a temporary tax exemption for tipped and overtime income capped at $1,750 through 2028 to provide immediate relief for hourly workers.
•  To combat rising housing costs, the Georgia statewide property tax assessment cap now limits annual homestead value increases to 3% or the inflation rate, removing previous local government opt-out provisions. Additionally, eligible taxpayers can expect a one-time Georgia income tax surplus rebate of up to $500 for married couples, while a temporary Georgia motor fuel tax suspension provides a 33-cent per gallon reduction through May 19, 2026.

Georgia lawmakers adjourned the 2026 legislative session after approving a series of tax changes affecting both income and property taxes. The package lowers the state income tax rate, limits how quickly home values can increase for property tax purposes, provides one-time rebates, and temporarily suspends the state gas tax. This is welcome news for many Georgia taxpayers that have been expecting relief. Portions of the legislation are already in effect, and others are expected to be finalized soon. To help clients, prospects, and others, Wilson Lewis has summarized the key details below.

HB 463: Income Tax Changes

The Georgia Economic Growth and Tax Relief Act of 2026 (HB 463) revises Georgia’s individual income tax structure over several years. The legislation lowers the income tax rate, increases the standard deduction and dependent exemption, and provides a temporary exclusion for certain tipped and overtime income.

• Income Tax Rate — The legislation would reduce Georgia’s income tax rate from 5.19% to 4.99% beginning in 2026. It also establishes a long-term plan to lower the rate to 3.99% through annual reductions of 0.125 percentage points, an increase from the prior 0.10% annual reduction schedule. 
• Standard Deduction — The standard deduction increases for both single filers and married couples. For single filers, the deduction rises from $12,000 to $15,000 in 2027, followed by annual increases of $375 until it reaches $18,000. For married couples filing jointly, the deduction increases from $24,000 to $30,000 in 2027, with annual increases of $750 until it reaches $36,000.
• Dependent Exemption — The dependent exemption increases from $4,000 to $5,000. Beginning in 2027, it rises by $125 each year until reaching $6,000.
• Tip and Overtime Income — For tax years 2026 through 2028, up to $1,750 of tipped or overtime income is exempt from Georgia income tax. This provision aligns with a temporary federal deduction for similar wages scheduled to expire after 2028.

SB 33 (HB 1116 / SB 382): Property Tax Limits and Local Sales Tax Option

The Homeownership Opportunity and Market Equalization Act of 2026 (SB 33) limits how much a homeowner’s property value can rise each year for tax purposes. It also allows certain counties and cities to adopt a 1% local sales tax, subject to voter approval, to help reduce or offset homeowner property taxes.

Statewide Assessment Cap — SB 33 requires all local governments to apply the homestead assessment cap first enacted under HB 581 in 2024. Annual increases in a home’s assessed value are limited to the rate of inflation or 3%, whichever is lower. Previously, cities, counties, and school districts could opt out of the cap, and about 68% of school districts and 30% of counties chose to do so. SB 33 removes that option and applies the cap statewide.

The law limits how quickly assessed values can grow, but it does not limit millage rates. Local governments can continue to set property tax rates based on budget needs. As a result, total property tax bills may still change from year to year.

Some local governments and school systems have raised concerns about how a mandatory cap on assessment growth could affect funding for services. For homeowners, the change likely means more consistent property values and property tax from year to year.

Optional Local Sales Tax — Counties and certain cities may adopt a 1% Local Homestead Option Sales Tax (LHOST), subject to voter approval. Revenue from this sales tax may be used to reduce or offset homeowner property taxes. 

HB 1000: One-Time Tax Rebates 

HB 1000 provides a one-time income tax rebate for eligible taxpayers. The rebate is up to $250 for single filers, $375 for heads of household, and $500 for married couples filing jointly. To receive the rebate, taxpayers must file both 2024 and 2025 Georgia income tax returns. Payments are issued automatically by direct deposit or paper check. The Georgia Department of Revenue offers an online tool to determine eligibility and payment status.

HB 1199: Conformity and Gas Tax Suspension

This updates Georgia’s tax code to address recent federal changes under the One Big Beautiful Bill Act (OBBBA). The law specifies which OBBBA provisions Georgia will follow and where the state will continue to apply its own rules. In areas where Georgia does not conform, taxpayers may need to calculate certain items differently for the state return versus the federal return.

The legislation also includes a temporary suspension of the state’s gas tax. From March 20 through May 19, 2026, the suspension reduces the tax by approximately 33 cents per gallon for gasoline and 37 cents for diesel fuel.

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Georgia’s 2026 legislative session produced a combination of immediate relief measures and proposed long-term tax changes. As these provisions move forward, taxpayers and business owners may need to monitor both state-level developments and local implementation decisions to understand how the overall tax position may change. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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Background

Each year, Georgia lawmakers pass a conformity bill to decide how the state will treat federal tax law changes. Because Georgia is a fixed-date conformity state, it does not automatically adopt each federal update as it is enacted. Instead, the General Assembly sets the date through which Georgia will follow the Internal Revenue Code, then identifies the provisions it will and will not adopt. This year, the legislature opted for partial conformity. 

Overview of House Bill 1199

HB 1199 updates Georgia’s IRC conformity date to January 1, 2026, for tax years beginning on or after January 1, 2025. It also identifies where Georgia will continue to follow its own rules instead of the new federal treatment. Those decisions have immediate implications for both businesses and individuals. Key updates include: 

For Business Taxpayers

• Bonus Depreciation — Georgia does not conform to federal bonus depreciation. If a taxpayer claims any percentage of bonus depreciation on the federal return, an add-back is required for state tax purposes. Instead, Georgia allows certain Section 179 expensing, which means the state deduction may be taken differently and over a longer period of time. 
• Section 179 Expensing — Georgia generally conforms to federal Section 179 rules, including the ability to expense certain property, such as qualified real property. However, Georgia treatment does not fully mirror federal treatment in every case.
• Immediate R&E Expensing — Georgia does not conform to new Section 174A, which restored immediate expensing for domestic research and experimental costs at the federal level after years of required amortization. However, this does not create a new state-federal difference because Georgia had already decoupled from the federal amortization rules and already allowed immediate expensing of R&E costs.
• Business Interest Limitation — Georgia does not conform to the OBBBA updates under Section 163(j). In reality, the federal change is closer to Georgia’s existing rules, so the difference may be limited, though a separate state calculation may still be required.
• Low-Income Housing Tax Credit (LIHTC) — Georgia partially conforms to the federal LIHTC rules, but state law now caps the aggregate annual amount of credits at $100 million for tax years 2026 through 2028. 

For Individual Taxpayers

• Limitation on Itemized Deductions — Georgia conforms to the federal rule that limits the tax benefit of itemized deductions. Taxpayers may still itemize, but for higher-income taxpayers, those deductions may not reduce tax liability to the same extent as under prior law.
• SALT Deduction — Georgia does not conform to the increased federal SALT cap deduction. The federal deduction is $40,000 for 2025 through 2029, with phaseout restrictions. That’s up from $10,000 in previous years. Georgia will continue to follow the $10,000 limit. 
• Tips and Overtime — Georgia does not conform to the federal deductions for qualified tips or qualified overtime compensation. Those amounts may still be taxed for Georgia purposes even if they receive more favorable treatment on the federal return.
• Car Loan Interest — Georgia does not conform to the federal deduction for qualified passenger vehicle loan interest. 
• Casualty Losses — Georgia conforms to the federal rule limiting casualty loss deductions to losses tied to federally declared disaster situations. 
• Miscellaneous Itemized Deductions — Georgia conforms to the federal elimination of miscellaneous itemized deductions. As a result, some deductions that taxpayers may remember from earlier years generally remain unavailable on the Georgia return. 
• Qualified Small Business Stock (QSBS) — Georgia conforms to the enhanced federal exclusion rules for QSBS under Section 1202. For affected taxpayers, that may preserve favorable state treatment in this area.

Next Steps

Because HB 1199 was signed on March 20, 2026, during filing season, taxpayers may need to revisit 2025 Georgia returns that were already filed. Returns still in process should incorporate the updated conformity rules. Going forward, taxpayers will want to review state-specific additions, subtractions, and deduction limits in areas where Georgia did not conform to federal treatment.

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Businesses and individuals affected by HB 1199 should review 2025 state returns with a qualified tax advisor before filing or amending a return. Beyond this filing season, the new law may also shape tax planning decisions throughout the year. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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Background

IEEPA tariffs were imposed by executive order beginning in early 2025, applying broadly to imports from many countries. They were separate from other tariff programs such as Section 232 and Section 301, which remain in effect. Here is how the legal situation developed:

• February 20, 2026 — The Supreme Court ruled that IEEPA does not authorize the President to impose tariffs. The decision did not affect tariffs under other legal authorities and did not address refunds.
• March 4, 2026 — The Court of International Trade (CIT) ordered CBP to begin issuing immediate refunds of IEEPA tariffs, with interest. At that point, interest was reported to be accruing at about $650 million per month.
• March 6, 2026 — CBP asked the court for a 45-day extension to update its systems and prepare for the volume of refund activity. The court paused the immediate refund requirement while CBP worked on a process.
• March 12, 2026 — CBP informed the court it was building a new system (called CAPE) inside of its existing ACE Secure Data Portal. 
• March 20, 2026 — The court issued an order giving CBP additional time to develop CAPE. CBP must provide another update by March 31, 2026.

How the Refund Process Is Expected to Work

CBP’s new system, CAPE (Consolidated Administration and Processing of Entries), is being designed to handle claims on an importer or bulk basis rather than processing more than 53 million separate entry-level refunds. 

Refunds will not arrive automatically; businesses will need to file claims, provide supporting records, and follow CBP’s instructions throughout the process. Businesses that plan to receive refunds electronically should also confirm they are enrolled in ACH Refund, which CBP requires for electronic duty payments.

CAPE has four main components:

• Claim portal — Importers submit refund requests, identifying affected entries and providing supporting documentation.
• Mass processing — CBP reviews claims for each importer, rather than treating each entry as a separate refund event; IEEPA tariff codes are removed and duties are recalculated. 
• Review and liquidation or reliquidation — Individual entries are reviewed and finalized for duty purposes.
• Refund — Approved amounts plus interest are paid out to importers.

There are also open questions about which entries qualify. Most entries from the past year or so are unliquidated, meaning CBP has not yet finalized what was owed, and those are the clearest cases for a refund. Entries that have been reviewed and closed more recently may also qualify, as long as there is still an adjustment window open. Final liquidated entries may not qualify, and CBP has not yet defined whether or how those entries will be eligible.

A user guide covering scope and functionality is expected as the system continues to develop. Until that guidance is released, businesses should focus on identifying affected entries, confirming their liquidation status, and organizing the records they are likely to need.

Next Steps

• Identify affected entries. Determine which entries were subject to IEEPA tariffs and estimate the amount potentially recoverable.
• Gather documentation. Pull entry summaries, duty payment records, importer-of-record details, broker reports, and related customs documents now.
• Enroll in ACH Refund. CBP requires ACH enrollment for electronic duty refunds. Businesses that are not set up should address that now.
• Coordinate with advisors. They can help confirm entry status, prepare records, and address the accounting and tax treatment of refunded duties and interest.
• Monitor updates closely. The process is still developing, and the court has required continued reporting from CBP.

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Importers will soon have a path to recover IEEPA tariffs, but the process is not automatic and requires businesses to act. Businesses that paid IEEPA duties should prepare for when more guidance becomes available. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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What Is Outsourced Accounting?

Outsourced accounting is a service model in which a construction company works with an outside team to handle some or all of its accounting needs. That support can cover routine financial tasks, reporting oversight, and strategic guidance. It may also include tax planning services throughout the year, not just at tax time. 

Highly Customized Support

The model is flexible by design. A company may outsource one part of the accounting function, such as bookkeeping or month-end close support, or it may rely on outside professionals across several levels. The right fit depends on internal staff, reporting needs, and growth goals, and it can change over the lifespan of the company.  

At the basic level, outsourced bookkeeping and accounting staff focus on billing, payroll, and monthly reporting. Responsibilities may include AP/AR, account reconciliations, payroll, expense tracking, journal entries, billing assistance, month-end close work, and financial statement prep.

The next level is controller-level support. The focus is on the accounting process, with some strategic insight. Responsibilities may include coordinating on job costing, internal controls, work-in-progress (WIP) reporting, cash flow monitoring, and overall reporting. The goal is to provide current information to leadership so they can review job and company performance in real time.

At the highest level, outsourced accounting can include full-time or fractional CFO services. They may provide detailed financial analysis, market trends, and global considerations to leadership ahead of strategic planning and decision-making sessions. Other responsibilities usually include forecasting, cash flow planning, profitability analysis, KPI tracking, and growth planning. It’s the strategic insight without the cost of a full-time executive. 

Key Benefits of Outsourced Accounting for Construction Companies

Financial Visibility — Construction leaders need current financial information. Outsourced accounting can improve the consistency and quality of reporting, which helps leadership see how the business is performing in real time; this also improves the decision-making process for management, especially when partnered with advisory services.   

Cash Flow Management — Cash flow is a constant concern in construction because payroll, subcontractor payments, and material costs often come due before customer payments are received. Outsourced accounting can help companies with accounts receivable processes, follow up on outstanding invoices, and reduce days sales outstanding (DSO). These outside teams can also monitor upcoming financial obligations and prepare the information leadership needs for bonding or other lender discussions.

Construction Expertise — Construction accounting is different from general business accounting. There’s simply more to track and more moving pieces. It’s not just looking over company-wide income and expenses. It’s also tracking the financial performance of each job, managing progress billing, monitoring change orders, and helping leadership understand current cash flow and profitability. Experienced outsourced accounting professionals bring a wealth of industry knowledge to the team. 

Stronger Compliance — Outsourced accounting reduces compliance risk. When processes are rushed or inconsistent, mistakes can happen across billing, payroll, reconciliations, and reporting. Outsourced accounting can add much needed personnel to the accounting department, if that’s the area of concern, or it can help establish processes for an internal team. 

Efficiency — When partnering with an accounting firm, the business gets tested processes, automated systems, and likely updated technology. This can bring an outdated accounting model that runs purely on spreadsheets into the modern era. It also allows leadership to be more efficient; instead of chasing reports, they can focus on growing the business. 

Cost Savings — Finally, outsourced accounting is usually a predictable monthly fee that can be scaled up or down depending on the depth of services. This often means the business doesn’t need to hire and train additional staff members. For construction companies, being able to access multiple levels of accounting support without expanding payroll leads to meaningful cost savings.   

FAQ

Is outsourced accounting for small and mid-sized construction companies?

Yes. Small and mid-sized construction companies often benefit from outsourced accounting because they need strong financial support, but they may not be interested in hiring several full-time accounting professionals. The model can work for a growing contractor just as well as it works for a larger company.

Can an outsourced accounting team work with an internal team?

Yes. Many companies use outsourced accounting to support internal staff, not replace them. A company may keep some functions in-house and bring in outside support for areas such as month-end close, controller oversight, or CFO-level planning.

Can outsourced accounting scale as the business grows?

Yes. Flexibility is one of the main advantages. A contractor may start with bookkeeping or accounting staff support and add controller or CFO-level services later as the business grows.

Contact Us

Construction companies need experienced accounting support. Outsourced accounting can give businesses access to the level of support they need, along with the industry expertise that often leads to a competitive advantage. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.

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