ACEC National seeks input on Passthrough Tax Deduction Rule
Member Feedback Sought on U.S. Treasury's Proposed Passthrough Tax Deduction Rule
Following the release of the first proposed rule for the new Section 199A passthrough tax deduction, ACEC is preparing to submit comments to the U.S. Treasury and Internal Revenue Service and is seeking input from Member Firms on the rule's impact.
The Tax Cuts and Jobs Act lowered the corporate tax rate from 35 percent to 21 percent and created the Section 199A 20 percent tax deduction for passthrough firms, including S corporations, partnerships, and LLCs. Advocacy by ACEC and Member Firms resulted in engineering and architecture being fully eligible for the deduction.
Additional rules are anticipated, but this first regulation provides significant information for taxpayers claiming the deduction. Contact ACEC Director of Tax & Regulatory Affairs Katharine Mottley to provide feedback on the proposed rule.