The U.S. House of Representatives Dec. 9 voted 241-181 to pass the Tax Extenders Act of 2009 (H.R. 4213) that included state and local sales tax deductions, a 15-year straight-line cost recovery for qualified leasehold and restaurant improvements, and the research and development tax credit.
In a letter sent before the vote, ABC expressed concern with provisions contained in the bill that would impact the construction industry. Specifically, ABC opposed a section regarding partnership interests transferred in connection with performance of services to raise revenue to offset the bill. ABC pointed out that some contractors enter into joint venture agreements where they are given partnership interest in exchange for having provided services to the partnership and will be negatively affected by the provision.
“ABC supports minimizing the tax burden on American citizens – the construction industry in particular – to help increase the rate of capital formation, economic growth and job creation,” ABC stated in the letter. “While we support extending expiring tax provisions, we feel this bill falls short of true tax relief for America’s small business.”
ABC offered suggestions for improving the tax relief for small businesses including cutting capital gains taxes; repealing the estate tax, providing relief from the Alternative Minimum Tax; clarifying independent contractor status and cash accounting methods, offering a standard home office deduction, increasing the threshold for the completed contract method and repealing look-back accounting requirements for construction firms.
“Small and family-owned businesses are the backbone of our economy and give Americans a sense of pride and accomplishment in our country,” ABC stated. “In the construction industry, they provide valuable jobs and play an integral role in building communities. ABC believes that these businesses are worth preserving for the next generation.”
To read the letter, click
here.