As the clock winds down on the 118th Congress, SMACNA stepped up the intensity of its constant advocacy for expedited Senate passage of H.R. 7024, the Tax Relief for America’s Families and Workers Act, Any further delay in extending these vital tax provisions will be even more devastating and costly to the economy, estimated at billions of dollars in forgone but badly needed capital investment, especially in the construction industry.
SMACNA Executive Director for Government and Political Affairs, Stan Kolbe, urged quick action before Congress adjourns by January when the 119th Congress is sworn in to office. “The nation is seeing robust and record setting growth in construction activity; therefore, your expedited support is essential to pass three widely popular and utilized tax incentive provisions:
- Retroactive Extension of the 100% Bonus Depreciation – Would restore the 100% bonus depreciation for qualified property, instead of the current 20% annual phase down that went into effect on January 1, 2023.
- Retroactive Extension and Permanence for 174 Research and Development Expenditures - Would allow companies to immediately deduct R&D expenses instead of amortizing over five years.
- Expand Section 179 expensing and interest deductibility for small businesses—Would increase the maximum eligible amount of equipment investment and extend the point at which the benefit phases out.
“At a time when our nation’s manufacturing construction market is rapidly expanding and our firms are bidding the largest projects in the nation, SMACNA and its thousands of contractors are urging that the Senate expedite passage of H.R. 7024 without further delay and move it to President Biden’s desk for his immediate signature,” Kolbe emphasized.
