As a result of extensive advocacy by NSPE and the engineering and architecture community, the House and Senate tax reform conference report 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 conference package now contains specific language stating that engineering firms are not subject to the limiting provision that applies to other service businesses. The conference report is scheduled to be voted on this week and will then be sent to President Trump to be enacted into law.
Major Victory for Engineers in Tax Reform Conference Report
Tuesday, December 19, 2017