Next week, Congress is expected to take action on several bills important to the construction industry.
First, the House is expected to consider legislation to extend the highway and transit authorization through the end of the current federal fiscal year, which ends on September 30, 2011. The extension would freeze spending levels on transportation programs at last year’s levels. Failure to extend the program by March 4 will result in the shutdown of the Federal Highway Administration (FHWA). To read more about the extension click here, or to send a message through AGC’s Legislative Action Center, click here.
The House is also expected to consider a bill that would repeal the 1099 reporting requirement that was included in last year’s health care law, which requires businesses to send 1099s to the IRS and to any business from which they made purchases of goods or services totaling $600 or more a year. AGC supports repeal of the 1099 provision and AGC members are encouraged to use the AGC Legislative Action Center to send a letter in support of repeal.
AGC is also encouraging all members to contact their Senators and Representatives and urge them to support repeal of the 3 percent withholding mandate. The Withholding Tax Relief Act has been introduced in the House and Senate to repeal the mandate. If it is not repealed before the end of the year, federal, state and local government will begin withholding 3 percent from payments for goods and services, including construction contracts. In the construction industry, the withholding could exceed a company’s tax liability on a project, restrict cash flow and ultimately increase the cost of doing business.
For more information, contact Jim Young at (202) 547-0133 or youngj@agc.org.