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Litany of Tax and Fiscal Priorities Included in Spending Agreement, Repeals Two Obamacare Taxes, Extends Pro-Construction Tax Provisions & More

December 18, 2019

On Dec. 19, the Senate passed many non-funding AGC-backed measures as part of the agreement reached to fund the federal government through the remainder of fiscal year (FY) 2020. This measure is expected to become law, pending the President’s signature. This legislation extends authorization for the Terrorism Risk Insurance Program (TRIA) for seven years, as well as the National Flood Insurance Program for one year. These programs provide an important government backstop for natural and man-made disasters that would otherwise prevent commercial construction projects from moving forward. Additionally, this bill addresses many priorities in the tax, healthcare, and retirement space. 

The tax title of H.R. 1865 addresses many AGC priorities. These include:

  • The extension of three tax provisions utilized and supported by AGC members: the Section 179D energy efficient commercial buildings deduction; the New Markets Tax Credit (NMTC); and the Work Opportunity Tax Credit (WOTC). Together, these tax provisions provide additional opportunities for development and help mitigate the ongoing construction workforce shortage. 
  • The Setting Every Community Up for Retirement Enhancement (SECURE) Act which expands retirement opportunities and improves the portability of retirement plans, especially for small employers, through multiple employer plans.
  • Allowing tax-free distributions from Section 529 college savings plans for certain apprenticeship programs, which can help address the growing workforce shortage in the construction industry.
  • Repealing two onerous health insurance taxes—the Health Insurance Tax (HIT) annual fee on health insurance providers and the so-called “Cadillac Tax” excise tax on employer-sponsored health insurance. These measures unnecessarily raise the cost of health insurance on construction employers.

For more information, contact Matt Turkstra at matthew.turkstra@agc.org or (202) 547-4733.

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