On Monday, October 14th, AGC submitted comments to the Committee on Ways and Means “tax teams.” These teams, started by Chairman Jason Smith (R-Mo.) earlier this year, have solicited input from interested parties about legislative priorities going into 2025, when many important provisions from the 2017 Tax Cuts and Jobs Act expire.
AGC solicited input during past meetings of the Financial Issues Forum, and the comments reflect that feedback, along with priorities across AGC’s divisions. Over the next few weeks, AGC will do a deeper dive into specific priorities and their potential impact on the construction industry.
Amongst the expiring provisions from the Tax Cuts and Jobs Act, AGC supports extending:
- Section 199A Qualified Business Income Deduction for construction firms organized as pass-through entities, such as S Corporations, Partnerships, LLCs, and Sole Proprietorships.
- “100 Percent Bonus Depreciation,” also known as “full expensing,” which allows construction firms to fully deduct the cost of new and used equipment in the year that it is purchased.
- Doubling the exemption from the estate tax from $5 million to $10 million (adjusted for inflation).
The comments also touch on other tax priorities, like providing more flexibility to smaller contractors from the complicated “percentage of completion method of accounting” or providing more flexibility for pass-through entities to deduct, and “carry-back” losses during an economic downturn. AGC also notes the importance of some provisions in the code, such as the Work Opportunity Tax Credit, for workforce development, and raising additional revenue for the Highway Trust Fund to support transportation construction.
If you have any questions, please contact Matthew Turkstra at (202) 547-4733.