Kansas Senator Brownback Introduces ACEC-Endorsed Cash Accounting Bill Sen. Sam Brownback (R-KS) Senator Sam Brownback (R-KS) has introduced key ACEC-endorsed tax legislation in the United States Senate to preserve the ability of engineering firms to continue using the "cash" accounting method to pay taxes. The Qualified Personal Service Corporation Clarification Act, (S. 2961), would update the federal tax code and allow engineering firms to continue using the cash accounting method — taxes are paid in the tax year when payment for services are rendered — as opposed to the accrual method, which requires taxes to be paid in the tax year the service is performed. Congress last addressed this issue in the 1986 tax law which required most corporations with annual revenues greater than $5 million to use the accrual method. In doing so, Congress recognized that certain service providers, such as architecture and engineering firms, should continue to use cash accounting, since they neither manufacture a product nor carry any inventory. "The engineering industry has evolved a great deal since 1986 in response to client needs," said ACEC President Dave Raymond. "Unfortunately, the IRS' definition of an A/E firm has failed to keep pace with these industry changes, and is beginning to challenge the ability of firms to use cash accounting." S. 2961, and companion legislation in the House (H.R. 2814), amends the tax code to resolve this problem, clarifying and updating the current ownership and function tests for engineering firms to include the expanded services firm clients demand. "This legislation will resolve the uncertainty fostered by the current tax code and preserve the intent of Congress that A/E firms should continue to have the option to use cash accounting," added Raymond.

Kentucky Rolls Out Red Carpet For Appropriations "Cardinal" Chairman's Club Members from left to right: Jim Gallt of Palmer Engineering, Craig Avery, ACEC/KY President Ron Gilkerson, Rep. Hal Rogers (R-KY), Randy Scott, and ACEC/KY Executive Director George Binder. ACEC of Kentucky teamed with ACEC/PAC in hosting a successful fundraiser to support the re-election efforts of Rep. Hal Rogers (R-KY), one of the so-called "cardinals" of the House Appropriations Committee by virtue of his chairmanship of the Subcommittee on Homeland Security. Rogers is considered a frontrunner to take over the chairmanship of the full committee when the new Congress convenes in January, putting him in a key position to oversee all government spending for defense, environmental, transportation, and other federal infrastructure programs. The Kentucky lawmaker briefed attendees on critical spending issues as Congress nears the end of the session, and heard member views on priority issues, including the reauthorization of TEA-21, for the new Congress. "Hal Rogers is a major player in Congress, not only for our state but for the nation," said Chairman's Club member Craig Avery of Fuller, Mossbarger, Scott and May Engineers. "He's also a big supporter of the industry and a major advocate of investing more in needed infrastructure." Added Chairman's Club member Randy Scott of Vaughn and Melton: "The more folks like Hal Rogers that we can elect to Congress, the more results we'll see in terms of a better business environment for engineering firms. That's why grassroots political involvement like this is so important."

ACEC/Alaska Latest To Meet 2004 ACEC/PAC Goal; Several State Organizations Closing In ACEC/Alaska President Mark Musial, left, and Alaska PAC Trustee Floyd Damron, right, present a PAC contribution to Rep. Don Young during his recent visit to CH2M Hill in Anchorage. ACEC of Alaska is the latest state organization to reach its fundraising goals for ACEC/PAC in 2004. Alaska joins ACEC/Nebraska as state organizations which have met or exceeded their 2004 fundraising goal. Indiana, Kentucky, Michigan, West Virginia, and Wyoming are well on their way to reaching their 2004 ACEC/PAC goals. Click here for the latest state-by-state progress. Earlier this year, ACEC/PAC trustees agreed to individual fundraising goals for each state organization based on membership strength and targeting an overall goal of $500,000 in 2004.

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