Addresses Bipartisan Infrastructure Bill Provision
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On September 9, the House Committee on Ways and Means, which has jurisdiction over tax policy, began consideration of its share of President Biden’s American Families Plan. The final price tag of the overall legislation is still being negotiated by the House and Senate, as moderate Democrats, such as Senator Joe Manchin of West Virginia, are seeking to scale back the size and scope of the legislation. This will have significant bearing on how large the overall package of tax increases will be that the Ways and Means Committee will consider.
On June 22, ż along with over 100 other trade associations voiced their strong opposition to any attempts to roll back the 20 percent deduction for pass through businesses—S-corps, partnerships, limited liability companies—enacted in the Trump tax cuts under Section 199A of the federal tax code. Despite the opposition, Chairman Ron Wyden announced on July 20 that he would move forward with a bill to phase out Section 199A. ż will oppose this bill that will increase taxes on small business construction companies.
The Small Business Administration (SBA) intends to withdraw the “Loan Necessity Questionnaire” that has heavily burdened and delayed all applications for forgiveness of Paycheck Protection Program (PPP) loans of $2 million or more. ż sued SBA last December for developing the form entirely in secret, and without public input, and for using the form to change the de facto requirements for the forgiveness of such loans. During lawsuit settlement negotiations, ż learned of SBA’s decision to withdraw the questionnaire. Recently, ż has also received an exceptionally large number of reports about SBA approving these loans for forgiveness. This is excellent news for the thousands of ż members who accepted such loans in good faith in order to keep their people working.
Expands Renewable Energy & EV Tax Credits; Attaches Labor Requirements
Would Increase Taxes on Individuals, on Capital Gains & at Death
We are proud to report that we have had a strong year in 2020 as the contents of our Annual Report - The Power of Engagement - make clear. The digital report catalogues the many accomplishments of ż of America. In our catalogue of some of the association’s most significant accomplishments, you will see how we work to support the entire construction industry as The Construction Association.
The infrastructure investment included in the Biden Infrastructure Plan would be funded through a variety of broad tax increases, primarily aimed at multinational corporations, but that would also impact domestic C-corporations, including some construction firms. Increased taxes on pass-through businesses, individual tax rates, estate taxes, capital gains taxes, and payroll taxes, are expected in the next “human infrastructure” package to be released in the near future. The primary funding mechanism would be to increase the corporate tax rate from the current 21% rate to 28%.