Over the past few weeks, the Congressional tax writing committees—the House Ways and Means Committee and the Senate Finance Committee—have held a series of hearings on the implementation of the new tax reform law, The Tax Cuts and Jobs Act. In all three hearings, the new deduction for pass-through businesses has emerged as one of the strongest points of disagreement between supporters and opponents of the legislation. This new deduction, which AGC strongly supported, provides a 20 percent deduction for owners of pass-through businesses, which is how the vast majority of construction firms are organized.
Unfortunately, this provision was only enacted on a temporary basis, and, absent Congressional action, will expire at the end of 2025. AGC will continue to defend this important deduction for our members, and push for legislation to make the deduction permanent.
For more information, contact Matthew Turkstra at [email protected] or (202) 547-4733.