3% Withholding Tax Update
It appears that those construction contractors who work with federal, state and local governments that were subject to the 3% withholding tax are a couple steps closer to a collective sigh of relief. As of November 10, H.R. 674 has made its way through both the House of Representatives and the Senate. The bill is actually on its way back to the House of Representatives for a vote due to slight modifications in the Senate’s passed bill. The bill is expected to pass the House.
The 3% tax was anticipated to first be levied in 2013, however has met stiff opposition from many organizations throughout the country, including many construction industry trade associations as noted a our previous blog post. This opposition has prompted congress to act, and it appears the construction industry is on its way to scoring a victory.
