While business owners may be understandably concerned about the possible tax increases coming from D.C., there is some decidedly good news on the tax front for architects, engineers and construction companies.
The Congress and the White House are now grappling with a list of tax proposals to address the economic impact of the Coronavirus. As policymakers wrestle with ways to best assist families and to also keep the economic engine going – thought should be given also to ways to reduce our nation’s dependency on overseas manufacturing of drugs and products – the supply chain. In short, to look ahead now at tax policies that can help minimize the economic and health impact of the next Coronavirus.
So nothing, nothing, nothing – and then bang! Like the parent who waits to the last minute to get to the toy store – Congress suddenly decided to move on taxes in a big way – repealing some unpopular taxes as well as extending a number of popular tax provisions – including Section 179D Energy Efficient Commercial Buildings (big news for designers of government buildings) and Work Opportunity Tax Credit (WOTC).
The ballots are still being counted (or recounted) in Arizona and Florida U.S. Senate races and President Trump has churned the water on a possible tax deal – stating in the post-election press conference that he would be open to raising tax rates (including corporate) to pay for a middle-class tax cut.
I recently wrote on the taxpayer rights/tax administration provisions that the Congress may pass before the end of the year – and now want to turn to the individual (mostly) and retirement tax provisions that Congress is considering as well.
The House and the Senate tax-writing committees have been working on (and the House has passed) some small-ball bipartisan tax legislation that can be grouped into two parts: 1) provisions that address taxpayer rights and tax administration; and, 2) provisions that are making substantive changes to the tax laws in areas such as retirement/401(k),
Architects and engineers scored a big win in the tax reform bill when they were included in the Section 199A—20% deduction on income. Now in the just-passed budget bill—architects and engineers win again (as well as some contractors) with an extension of an important tax benefit—Section 179D—which rewards the design and building of energy efficient buildings (as well as modifications to existing buildings).
Even though Congress passed the biggest tax overhaul in more than 30 years only a few weeks ago, there’s likely to be more tax-related legislation coming out in the very near future.
The continuing resolution that lawmakers have been debating to fund the government could contain some tax provisions.
The balloons have dropped, the signing ceremony is over and the dust is beginning to settle on the tax reform bill signed into law. For small and medium business owners there is good news, some not great news — and certainly important tax planning opportunities that they should consider to keep more dollars in their pocket to grow their business and create jobs.
The Trump administration and the tax-writing committees released today their “Unified Framework For Fixing Our Broken Tax Code,” seeking to put more meat on the bone of tax reform.