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. Family-owned firms would get a boost from
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.