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11/17/2017

Statement from ACEC on Tax Reform

Click Here for : ACEC Statement of Tax Reform

Needed: "All Hands On Deck" To Fix Tax Bill

ACEC continues to battle against problematic provisions in both the House and Senate tax bills. Here's the latest:

ACEC President/CEO Dave Raymond sent a letter to all U.S. Representatives yesterday urging changes to the House bill, noting that the measure "actually increases the tax burden on engineering passthrough firms...hitting small firms the hardest." Click here to read the letter.

Although the House and Senate bills reduce tax rates for C corps, including engineering firms, to 20 percent, which ACEC supports, they fall short in extending tax relief to engineering firms organized as S corps, partnerships, and LLCs.

Both bills have been modified this week to provide some additional relief for business passthroughs, but the changes do not go far enough. "We are starting to narrow the scope of the problem," said Raymond, "but there is still a long way to go."

The Council is working closely with the House Ways and Means Committee and Senate Finance Committee, the tax-writing committees.

ACEC is raising particular concerns over the fact that the bills would also eliminate Section 199 of the code, which provides engineering firms with a 9% tax deduction for certain income. The combination of denying tax relief to various service industries and eliminating Section 199 leaves many firms with a higher tax burden compared to current law.

ACEC's Action Alert has already generated more than 4,500 member letters to House and Senate offices, calling for changes to the bill.

The Council urges members to continue their outreach efforts. For a sample letter, click here.


Advancing the Business of Engineering