Engineering Inc. - March/April 2005 - (Page 8)

L E G I S L AT I V E AC T I O N TREASURY DEPARTMENT AGREES WITH ACEC ON A/E TAX DEDUCTION; BUSH ASKS FOR ACEC SUPPORT ON TEA-21 Proposed Tax Regulations Incorporate ACEC Provisions In a guidance released in late January on the implementation of the new 9 percent A/E tax deduction signed into law, which ACEC was instrumental in formulating, the Treasury Department has now incor- porated ACEC's recommended definition of engineering services, max- imizing the benefit of the bill's provisions for engineering firms. Signed into law in November 2004 as part of the American Jobs Creation Act H.R. 4520 , A/E firms will receive an income tax deduction for engineering services performed in the U.S. of 3 percent for 2005 and ramping up to 9 percent by 2010. As Treasury began work on drafting regulations in December, ACEC President Dave Raymond urged the department to incorpo- rate a broad definition of engineering services, stressing that such a definition would simplify record keeping and documentation require- ments and provide engineering companies with a clear understanding Transportation Secretary Norm Mineta and ACEC President Dave Raymond for planning purposes of what activities are subject to the provision. at the White House The ACEC-recommended definition includes any professional services requiring engineering education, training and experience and the application of special knowledge of the mathematical, physical or Rep. Young's reauthorization proposal was introduced in mid- engineering sciences to those professional services such as consulta- February, and also includes a re-opener provision that would cut tion, investigation, evaluation, planning, design or responsible super- off the flow of transportation funds after two years to allow Congress vision of construction for the purpose of assuring compliance with to revisit and possibly increase the funding level, although this provi- plans, specifications and design. sion provoked a veto threat from the Bush administration last year. ACEC currently is reviewing the guidance and may provide addi- Young's legislation stills leaves open the question of total contract tional comments to the Treasury Department regarding the engineer- authority, which was set at $299 billion during last year's negotia- ing tax benefit. Treasury will use this guidance and the comments tions. House leaders have tentatively agreed on the minimum guar- received to draft proposed regulations, which will be released in the antee for each state the minimum percentage return each state summer of 2005. To view the proposed guidance, go to http://www. acec.org/advocacy/bill4520.pdf. Comments on the guidance are due ISSUES ON THE MOVE WHAT'S NEXT March 31. ACEC-backed regulations to Final regulations expected ACEC Reviews Higher TEA-21 Request at implement new 9 percent A/E late spring White House Meeting tax deduction Pre s i d e n t's Bush's fiscal year 2006 budget request to Congress includes $284 billion in guaranteed spending for the next version of TEA -21 Reauthorization Floor consideration expected TEA-21, a 35-percent increase over the current program and a siz- backed by Bush at $284 in March able increase over his initial reauthorization proposal introduced a billion year ago. ACEC President Dave Raymond was asked to attend a Comment deadline April 3, SBA Size Standards White House meeting in late February to discuss the president's pro- 2005; final regulations posal, where Karl Rove and Transporation Secretary Norm Mineta expected by summer asked for the Council's support. In related news, House Transportation and Infrastructure Com- mittee Chairman Don Young R-Alaska introduced a new reau- Committee hearings in March ACEC-backed Association thorization measure that matches the president's guaranteed spend- Health Plan Legislation ing level and leaves open the possibility of higher spending down the road. 8 ENGINEERING INC. M a r c h l April 2005 http://www.acec.org/advocacy/bill4520.pdf http://www.acec.org/advocacy/bill4520.pdf

Table of Contents for the Digital Edition of Engineering Inc. - March/April 2005

Table of Contents
From ACEC To You
Ask Members
News & Notes
Market Watch
Legislative Action
COVER STORY: A Perfect Legal Storm
Interview With F. James Sensenbrenner, Jr.
Is There an Engineer in the House
The ABCs Of ESOPS
ACEC/PAC Donations Break All-Time Record
ACEC Roundtable
Members In the News
One on One

Engineering Inc. - March/April 2005