On the evening of January 31, during PCCA's legislative fly-in to Capitol Hill, our members witnessed firsthand the impact of their advocacy for the Tax Relief for American Families and Workers Act (H.R. 7024) when it passed the House. Despite the overwhelmingly bipartisan vote, the Senate presents new challenges with lawmakers on both sides of the aisle expressing reservations.
In response, PCCA has launched a new advocacy campaign to rally support for H.R. 7024, underscoring the importance of this deficit-neutral tax reform package. We remain committed to championing its passage and securing a substantial victory for our industry, as well as the entire business community and the American people.
"The timing of the passage was a testament to the dedication and hard work of our members," PCCA President & CEO Tim Wagner said. "It was a proud moment for all of us, knowing that our collective voice played a role in this achievement. We will continue to work tirelessly for the passage of H.R. 7024 and to ensure that our industry's voice is heard.”
If signed into law, the bill would:
- Promote Innovation and Competitiveness: Companies would be able to deduct research and development costs immediately instead of over five years. A 100 percent write-off not only makes it financially easier to invest in new machinery, equipment, and vehicles, but also drives economic growth. In creating more favorable conditions for research and development investments, the bill will strengthen the position of American companies on a global scale, especially in industries where rapid innovation is necessary to remain on par with our competitors.
- Revive 100 Percent Depreciation: The bill would also revive 100 percent bonus depreciation for property placed in service after December 31, 2022, and before January 1, 2026.
- Build Up Main Street America: Increase the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap--the first update to the threshold since the 1950s.
- Streamline Tax Preparation: Raise the threshold for businesses to issue specific informational tax returns (1099s) to independent contractors from $600 to $1,000. This change will make payroll management and contractor payments more efficient in the construction industry, "significantly reducing the administrative burden on a corporate workforce that is already stretched thin.”
- Eliminate Fraud and Waste: End the Employee Retention Tax Credit Program, saving over $70 billion in taxpayer dollars. This change would accelerate the deadline for filing backdated claims to January 31 under the COVID-era employee retention tax credit, a program plagued by major cost overruns and fraud.
- Provide Disaster Tax Relief: Help families and communities get back on their feet with disaster tax relief covering recent hurricanes, flooding, wildfires, and the Ohio rail disaster. This could potentially increase the demand for construction services, leading to more job opportunities.
- Support Working Families with an Enhanced Child Tax Credit: Increase the refundable amount for 2023-2025, eliminate penalties for larger families, and offer a one-year income lookback for calculating the credit in 2024 and 2025. This could indirectly benefit construction employees, particularly those with families, leading to greater employee satisfaction and stability within the workforce.
- Enhance the Low-Income Housing Tax Credit: Boost the tax credit with increased state allocations and a reduced tax-exempt bond financing requirement. This could stimulate the construction of affordable housing, leading to a rise in project opportunities and potentially generating additional employment in the sector.
This legislation would benefit construction firms, our suppliers, and the American people overall. We cannot allow this important legislation to be derailed over unrelated partisan disagreements. PCCA urges all who are invested in improving the American economy to join our efforts in supporting the Tax Relief for American Families and Workers Act in the Senate. Together, we can ensure the passage of this critical legislation and continue to build a prosperous future for the construction industry and the nation.