NSPE Supports Repeal of Withholding Tax

Thursday, October 13, 2011

The House Ways and Means Committee approved H.R. 674, which would repeal a requirement set forth in the Tax Increase Prevention and Reconciliation Act of 2005 (PL 109-222) that federal, state, and local governments must withhold 3% of all payments to engineering firms and other vendors as tax. If the requirement is not repealed, the tax will take effect on January 1, 2013. The bill next will move to the House floor for consideration. NSPE joined members of the Government Withholding Relief Coalition in sending letters to House Ways and Means Committee Chairman Dave Camp (R-MI-4) supporting H.R. 674. Read NSPE's letter here. NSPE is a member of the Government Withholding Relief Coalition, a group of more than 140 organizations that share the goal of repealing the 3% withholding law. The Withholding Tax Relief Act (S. 164) in Senate Republicans' "Real American Jobs Act" also contains a repeal of the 3% withholding tax. Supporters of H.R. 674 hope strong bipartisan passage of the House bill will spur similar Senate action.