As a result of extensive advocacy by NSPE and the engineering and architecture community, the Tax Cuts and Jobs Act, now signed into law, allows for a 20% deduction for businesses organized as “pass-through” entities, like S-corporations, sole proprietorships, and limited liability partnerships, subject to income limitations. The Senate bill would have greatly restricted this deduction for “service” businesses, including engineers, architects, doctors, lawyers, and financial services firms. The final legislative package contains specific language stating that engineering firms are not subject to the limiting provision that applies to other service businesses. The tax reform package passed the Senate by a vote of 51-48 and passed the House of Representatives by a vote of 224-201. President Trump signed the measure into law on December 22.
Engineers Secure Major Victory in Final Tax Reform Legislation
Monday, January 8, 2018