Engineering Inc. - November/December 2010 - (Page 7)

A ACEC Continues to Target Repeal of New 1099 Mandate CEC is working with a coalition of business groups to identify ways to repeal an onerous tax-filing mandate in the health care law. Under the new law, firms will be required to file IRS Form 1099 for purchases of any goods and services valued at more than $600 annually. This mandate would take effect in 2012 and would burden engineering firms of all sizes with excessive filing obligations. ACEC also submitted comments to the IRS highlighting numerous and serious implementation issues, from problems related to credit card purchases to concerns that such a mandate would prompt companies to consolidate purchases among fewer vendors, Sen. Mike Johanns (R-Neb.) offered an amendment thereby harming to repeal the onerous tax-filing mandate. small businesses. IssuEs oN thE movE Liability relief for 9/11 structural firms aviation, water and surface transportation Expiring tax rates What’s NExt Possible senate action in November Possible action on aviation and water before end of the year house and senate votes expected after Election Day R GOP Wins Add Momentum To Tax Rate Extension A ACEC Urges Senate to Act on Renewable Energy CEC is backing bipartisan legislation in the U.S. Senate to create a national Renewable Electricity Standard (RES). The Council has called on Senate leaders to act on a renewable-energy bill before the end of the year. The bipartisan bill, introduced by Sens. Jeff Bingaman (D-N.M.) and Sam Brownback (R-Kan.), would require electric utilities to produce a percentage of their electricity from renewable sources, including wind, solar and geothermal energy. The bill is co-sponsored by Sens. Byron Dorgan (D-N.D.), Susan Collins (R-Maine) and Tom Udall (D-N.M.). “A vigorous RES is essential to developing the vast reserves of natural renewable energy resources that exist in the United States,” said ACEC President Dave Raymond in his letter to Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.). “It’s an important piece of a comprehensive energy strategy that is so critical to our nation’s economy.” RES language was initially part of a larger energy bill passed by the Senate Energy Committee last year with broad bipartisan support, and is part of an energy and oil-spill response package yet to be considered on the Senate floor. epublican success at the ballot box is expected to put greater pressure on Congress to extend the 2001 and 2003 tax cuts when it returns for a “lame duck” session in November and December. On Jan. 1, 2011, individual incometax rates will rise unless Congress acts. In addition, capital gains and dividends tax rates will increase and the estate tax will return. Higher tax rates would have a significant impact on firms organized as pass-through entities, such as S corporations or partnerships that pay business income taxes at individual rates. The point of disagreement is whether to extend all of the tax cuts or just those for individuals earning less than $200,000 and families earning less than $250,000. A compromise could entail extending the tax cuts temporarily and revisiting the issue when the economy is stronger. In addition, Congress has yet to act on the business tax extenders, such as the R&D tax credit and brownfields expensing provision, which expired at the end of 2009. There is also interest in extending portions of the stimulus law, including the Build America Bonds program. SCott J. FErrELL/CongrESSionAL QuArtErLy/gEtty imAgES W ‘Industry Victory’ in Lifting Of Gulf Coast Drilling Ban ith encouragement from ACEC and other business groups, the Obama administration recently lifted the moratorium on deepwater drilling in the Gulf of Mexico. In August, after assessing the ban’s adverse impact on Member Firms along the Gulf Coast, ACEC President Dave Raymond contacted U.S. Energy Secretary Ken Salazar to urge an expedited review of the deepwater rigs in the Gulf and a “speedy end” to the moratorium. The moratorium was imposed on May 30 following the explosion of the BP Deepwater Horizon platform on April 20. Kam Movassaghi, president of C.H. Fenstermaker and Associates, Inc., in Lafayette, La., said, “While it will take time to mobilize offshore activity, lifting the moratorium is a huge boost to the regional economy and to firms along the Gulf Coast. This is a big victory for ACEC and our industry.” For More News For weekly legislative news, visit ACEC’s Last Word online at www.acec.org. 7 NovEmbER / DECEmbER 2010 ENGINEERING INC. http://www.acec.org

Table of Contents for the Digital Edition of Engineering Inc. - November/December 2010

Engineering Inc. - November/December 2010
Contents
From ACEC to You
News and Notes
Market Watch
Legislative Action
Power Play
2010 Fall Conference Highlights
Ins and Outs
Re-energized
Business Insights
Young Professionals of the Year
Members in the News

Engineering Inc. - November/December 2010