Republicans of the House of Representatives of the United States approved their Tax and Expenditure Bill, the only major invoice law, for a vote of 215-214 during a session during the night of May 22. The package includes tax deductions that benefit many construction contractors, along with a combination of provisions that probably help some types of projects and make it difficult to make others.
“Today, the House has approved generational and nation legislation,” said House President Mike Johnson (R-La.) In a statement after voting.
The bill, which is more than 1,100 pages, is estimated that the deficits will increase by $ 2.3 trillion for 10 years, according to the budget office of the non -partisan congress.
One of the key legislation for contractors is the extension of the tax deductions of the 2017 Tax cuts and jobs, which otherwise had to expire at the end of this year. The 199A deduction for passage companies, which includes most construction companies, according to the general contractors associated with America (AGC), would be permanent and increased from 20% to 23%.
“This bill includes significant tax relief for contractors,” wrote the builders and contractors associated in a letter to the legislators who urged them to support the bill. “The scheduled expiration of many of these policies in 2025 would have serious effects, not only for our members of the contractor, but also on the construction market more widely.”
The package would also make a greater exemption on alternative minimum taxes and increase the exemption of goods on goods from $ 5 million to $ 15 million, both sought by some in the construction industry.
In addition, the bill would add a new tax reduction for many employees, eliminating taxes on the extraordinary payment until 2028.
Hand of work programs
The package includes provisions that benefit the training of workers to join the construction industry. An extension of the grain -leather student aid program to include those enrolled in labor training programs, rather than only full -time university students. AGC has “argued that these funds are made available to students who pursue the type of short -term credentialing programs that are a key way to the construction industry,” said Brian Turmail, Vice President of Public Affairs and AGC work force, through email.
The bill would also expand the eligibility of so -called 529 savings accounts to cover specialized trade programs, allowing those who follow a degree in construction to use a different tax savings account to pay for their expenses related to education.
Energy and environment
The legislators used the bill to reduce many Biden administration priorities throughout the environment and to promote some of the goals of President Donald Trump around energy.
An accelerated permanent layout added by virtue of the natural gas law would allow developers to pay a fee: 1% of the estimated cost of the project or $ 10 million, which is less, to introduce a consolidated permit process for qualified projects. Agencies would have a year to complete their reviews in most cases, and any request still pending the deadline would be automatically considered “that would be approved by perpetuity.”
The package would also create a “risk compensation program” for fossil fuel projects and nuclear energy. The program would offset owners in the event that the federal action delayed or obliges the cancellation of sub-construction projects. The owners should pay a 5% registration fee of the estimated cost plus 1.5% of the annual premiums to participate in the program.
The tax credits established by the Act of Inflation Reduction of 2022 for the wind, solar and storage of battery storage projects could be eliminated under the invoice. The legislators had initially established in 2029 as the end date, but some Republicans pushed the program before, pressing in 2027. Under the pressure of Trump to pass the bill, they settled in 2028 to end the tax credits.
The cuts led to the criticism of renewable energy groups, which said that manufacturing plants would close and that people would lose work as a result.
“ Tax and manufacturing credits promote deployment and investment in a wide range of zero carbon sources, including advanced geothermal, nuclear and renewable energy such as wind and plot, ” said Nathaniel Keohane, president of the Center for Climate and Energy Solutions, in a statement. “The fact of stepping on these credits will increase the prices for companies and households and quench the electricity supply at the moment when the energy demand is booming.”
The package adds new $ 250 annual registration rates for electric vehicles and $ 100 for hybrid vehicles. The funds raised from the fees will go to the trust of the road.
The bill also directs officials to terminate a land management decision on the supplementary environmental review of the $ 600 million AMBLER road project proposed in Alaska, which would open access to mining. The Government denied permission for the project under the administration of Biden, but the bill would advance the plan and reinstall a preferred alternative selected by virtue of the first Trump administration.
Passing the package
The Chamber Republicans approved their reconciliation package without the support of a single Democrat. Only Republican representatives Thomas Massie (Ky.) And Warren Davidson (Ohio) voted against the bill, and some refused to vote or simply responded “present”. Both Massie and Davidson shared their concern about the level of spending on the bill and the amounts that are ready to increase short -term deficits, with an unforeseen savings for several years.
“If we were serious, we would now reduce the expenses, instead of promising to reduce the years now,” Massie wrote on social media.
The following legislation goes to the Senate, where legislators will only need a simple majority, instead of the three fifths, to approve it under the reconciliation process. But the bill continues to face the opposition of Democrats for cuts in health care and eating benefits, and some Republicans may seek additional changes before compromising their support.
President Donald Trump celebrated the passage of the bill and asked legislators to the Senate to send the legislation to his desk “as soon as possible” in a position on social media. Treasury Secretary, Scott Bessent, told journalists last month that the administration aims for the bill to approve on July 4.
