Stephen E. Sandherr, the CEO of the Associated General Contractors of America, recently released the following statement regarding final passage of federal tax reform:
"Today, Congress passed comprehensive tax reform legislation that will lower rates, spur economic growth and impact construction businesses for years to come. However, this process did not start as well as it ended for the construction industry. (Click here to download a chart for details on the final bill.)
"Initially, the tax reform bill provided little relief for many construction firms organized as pass-throughs, such as S-corps, limited liability corporations and partnerships; eliminated Private Activity Bonds, essential to the financing of transportation infrastructure, low-income housing and other public construction and public-private partnership projects; and repealed the Historic Tax Credit, critical to the private construction market for the rehabilitation and renovation of historic buildings.
"AGC continued to fight for a better outcome for the construction industry by undertaking a rigorous direct lobbying campaign. Our efforts included connecting construction company CFOs and CPAs with tax writers, and generating thousands of pro-construction messages from members to key legislators. Our efforts helped convince members of Congress to ultimately reduce the corporate rate by 14 points; lower individual and pass through rates; double the estate and gift tax exclusion to $11 million; ensure the tax-exempt status of Private Activity Bonds remained untouched; and prevent full repeal of the Historic Tax Credit.
"That stated, there is still much work to be done in our nation's capital in the New Year. Though Congress missed an opportunity to address the long-term solvency of the Highway Trust Fund via tax reform, we remain focused on ensuring that this administration keeps its promise to rebuild the nation's infrastructure. And, we are committed to efforts to modernize multiemployer pension plans for the future, among other priorities for the industry.