Engineering Inc. - September/October 2015 - (Page 6)

Legislative Action ACEC Urging Quick Action on Multiyear Transportation Bill as Congress Reconvenes T he Senate approved a six-year, $360-billion highway bill prior to the summer recess, so all eyes now turn to House leaders to fulfill repeated pledges to produce a long-term bill when House members return in September. The Senate voted 65-34 to pass the Developing a Reliable and Innovative Vision for the Economy Act (DRIVE Act), an ACEC-supported six-year reauthorization of highway, transit and safety programs that features a 12 percent increase in average annual funding over current levels. The legislation includes a transfer to the Highway Trust Fund that will provide funding for the first three years of the bill. The Council lobbied heavily in favor of the Senate bill and is now pressuring the House to deliver on vows to produce its own long-term transportation legislation in September. Congress separately approved a three-month MAP-21 extension through October 29 and transferred an additional $8 billion into the Highway Trust Fund to maintain current funding to states and provide time to agree on a final bill. "The discouraging reality is that the clock is again ticking on yet another shortterm extension," said ACEC President Dave Raymond following action on the bills. "When lawmakers return from summer recess after Labor Day, they will try to accomplish something in about six weeks that hasn't been achieved in six years-agree on a satisfactory way to pay for a long-term bill and get it to the president's desk." The six-year DRIVE Act provides $275 billion for highway programs over six years, including $256 billion in formula funds to the states, $1.8 billion for TIFIA loans and credit assistance, and $2.1 billion in grant assistance for major projects. Annual state highway funding grows from the current $37.8 billion to $39.6 billion in F.Y. 2016, ramping up to $45.7 billion in F.Y. 2021. Transit programs will receive $75 billion over six years, including $59.5 billion in formula funds to state and local governments and $14.6 billion for capital investment grants. The bill also authorizes $8.9 billion over four years from the General Fund for passenger rail programs, including $6.6 billion for Amtrak and $2.2 billion for state rail infrastructure improvement grants. The bill transfers $45 billion from the General Fund to the Highway Trust Fund to supplement existing gas and diesel taxes and other transportation revenues. The budget offsets are projected to support program funding through F.Y. 2018, at which point additional congressional action would be necessary. The DRIVE Act also contains provisions recommended by ACEC to streamline project delivery and to fund multistate pilot projects to study alternative financing mechanisms, such as vehiclemiles-traveled fees. T he prospects for comprehensive tax reform in 2015 have dimmed, but tax writers in the House continue to pursue more limited reforms designed to improve the international competitiveness of U.S. businesses. House Ways and Means Committee Chairman Paul Ryan (R-Wis.) and the White House initially sought to pursue legislation to reduce corporate tax rates in response to concerns over U.S. firms reincorporating overseas or being acquired by foreign competitors. After ACEC and other business organizations expressed that lowering corporate tax rates would disadvan- 6 ENGINEERING INC. tage pass-through businesses such as S corporations and partnerships, tax writers have put aside the discussion of corporate and individual rates until Congress and the administration can agree on a more comprehensive approach to rewrite the tax code. As an alternative, Rep. Charles Boustany (R-La.) has released draft legislation that would create a lower tax rate for profits from qualified property, such as patents or inventions. Several European countries have enacted similar incentives-generally known as an "innovation box"-for firms to perform work domestically. The innovation box concept would likely be paired with a SEPTEMBER / OCTOBER 2015 mandatory tax on overseas earnings, some of which would help fund the federal highway program. Any tax package is likely to also include an extension of expired tax provisions. The Senate Finance Committee approved Rep. Charles Boustany (R-La.) a two-year The legislation would be in extension of 52 tax provieffect for 2015, retroactive sions that expired at the end to January 1, and 2016. The of December. These include House is considering similar several backed by ACEC, such approaches on tax extenders, as the R&D tax credit, bonus depreciation, higher expensing with final action expected in the fall. levels and energy tax credits. CHARLES DHARAPAK/AP Tax Reform Focus Narrows

Table of Contents for the Digital Edition of Engineering Inc. - September/October 2015

Engineering Inc. - September/October 2015
Contents
From ACEC to You
Market Watch
Legislative Action
Unlocking the Ocean’s Secrets
Positive Impressions
Low Water, High Hopes
International Corruption
Leading the Way, Lending a Hand
Guest Column
2015 Fall Conference
Guest Column
Guest Column
Business Insights
Members in the News
Mergers and Acquisitions

Engineering Inc. - September/October 2015