Alert on Critical Tax Relief

The U.S. Senate is sitting on immediate tax relief legislation that can put more money into your pockets, instead of the IRS’s. We need you to take action!

On February 29, AGC issued an Action Alert, calling on AGC members to contact members of the U.S. Senate to quickly pass H.R. 7024, the Tax Relief for American Families and Workers Act, which overwhelmingly passed the House of Representatives in January, by a vote of 357-70.

The legislation, which AGC issued a KEY VOTE alert for in the House, would:

  • Roll back a provision that forces construction firms to amortize their research and development expenses over five years, rather than writing them off in the year they are incurred. This can include costs, including staff salaries, for design/build project activities, developing and improving pre-fabrication methods and other ways to increase efficiency, performance, and reliability, and many other construction-related activities.
  • Reinstate full expensing for new and used business equipment by allowing construction firms to fully deduct those expenses in the year the equipment is placed in service.
  • Simplify tax preparation by increasing the threshold at which businesses have to issue certain informational tax returns (1099’s) to independent contractors, from $600 to $1000.

Despite overwhelming support, some in the Senate are insisting on insignificant changes that would only further delay action on this important legislation. The longer the Senate delays, the more disruptive it will be on the tax filing season for contractors.

If you have any questions, please contact Matthew Turkstra at [email protected], or (202) 547-4733.

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