As the House and Senate head for the end of their lame-duck session, must-pass tax and appropriations bills are advancing. The final versions of both measures will have a major impact on construction.
An $858-billion tax bill on Dec. 14 was sent to the Senate for final passage. The bill extends 2001 and 2003 individual rates, offers alternative-minimum-tax protection for many and cuts employees’ Social Security payroll taxes to 4.2%, from 6.2% for one year. Those provisions would help small design and construction firms taxed at individual rates as partnerships or S Corporations.