Senate Passes Withholding Repeal

Thursday, November 10, 2011

The Senate passed H.R. 674 by a vote of 95 to 0. H.R. 674 would repeal a requirement set forth in the Tax Increase Prevention and Reconciliation Act of 2005 (PL 109-222) that federal, state, and certain local governments 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 If the requirement is not repealed, the tax will take effect on January 1, 2013.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 House passed H.R. 674 on October 27; but because the Senate-passed bill includes amendments to the original bill, H.R. 674 now must return to the House for final approval before it can be sent to the President for signature. The House is scheduled to vote on the measure next week. NSPE continues to work with the Government Withholding Relief Coalition to pass H.R. 674. 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. NSPE would like to thank the NSPE members who used the NSPE Legislation Action Center to contact their senators regarding the withholding repeal. Our combined efforts are helping to ensure that professional engineers stay in business.