Association official say the pending repeal of the 3 percent tax withholding mandate (The U.S. House of Representatives is expected to vote on a Senate-approved measure this week) will provide some much-needed financial relief to the construction industry.
“The fact contractors won’t be forced into providing billions in interest-free loans to the federal government beginning in 2013 will provide some much-needed relief for a hard-hit industry and its struggling workers,” said Stephen E. Sandherr, the Associated General Contractors’ chief executive officer.
Both the Carolinas Associated General Contractors and the Associated Builders and Contractors of the Carolinas praised the repeal of the 3 percent tax withholding mandate. Cynthia Mills, President and CEO of Carolinas AGC stated, “In September, Carolinas AGC Board members traveled to Washington, D.C. to meet with legislators carrying the message, along with contractors across the country, that this was one of several critical actions needed to assist the nation’s hardest hit industry to recover. We are relieved to see one barrier removed as our members seek to be active players in the restoration of our nation’s economy.”
Associated Builders and Contractors praised the U.S. Senate for passing legislation to repeal the imposition of the 3 percent withholding tax on contractors (H.R. 674). The repeal measure was passed Oct. 27 by the U.S. House of Representatives.
“The Senate has taken a positive and necessary step today to remove a level of uncertainty in the construction industry, allowing contractors to better plan their long-term businesses strategies,” said ABC Vice President of Federal Affairs Geoff Burr. “Without this burdensome, punitive requirement, contractors that do business with federal, state and local governments will now have the confidence to bid on new projects and create more jobs. “We encourage the House and Senate to quickly work out their differences on this measure, and send it to the president so he can sign it into law,” said Burr.
Engineering News-Record reported the House had approved a version of the repeal bill on Oct. 27 with bipartisan support. But the Senate added a non-controversial amendment to the bill to provide tax credits to companies that hire veterans, so the Senate’s amended version now must go back to the House for a vote. The House is expected to pass the Senate-approved measure. President Obama already has indicated that he will sign it. Read More.