House, Senate Make Final Push On Estate Tax Reduction The House passed legislation in the final hours before the summer recess that would lock-in reduced estate tax rates for engineering firm owners and others seeking to pass their businesses or estates to their children. The Senate effort to pass similar legislation came up short this week. It is expected however, that work towards passage of the Senate legislation, which includes an increase in the minimum wage, will begin again in September. Under the House-passed bill (H.R. 5970), the current estate and gift tax exemption of $2 million would be increased to $5 million by 2015. Estates between the exemption and $25 million would be taxed at the current capital gains tax rate, which is 15% (and scheduled to increase to 20% in 2011). ACEC played a lead role in getting legislation passed in 2001 that sought to phase-out the estate tax by 2010. The Council supported the legislation since many member firms are family-owned businesses. Because of budget constraints, the phase-out did not extend beyond 2010. The Council and its congressional allies have been working to ensure that family-owned firms are not confronted with significant tax increases in 2011. While not a complete elimination of the estate tax, the language included in H.R. 5970 will ensure that most firm owners and other small businesses are not saddled with estate taxes in the future. As part of the effort to secure a final compromise on the estate tax issue, the measure also includes a phased-in increase in the minimum wage, from the current level of $5.15 per hour to $7.25 per hour by 2009. Additionally, the package contains a number of miscellaneous tax provisions, including a measure that provides for a new tax deduction to cover certain clean-up costs at "brownfields" industrial sites.

Senate Passes Offshore Drilling Bill; Negotiations To Begin With House The Senate this week passed S. 3711, the Gulf of Mexico Energy Security Act, which will allow for offshore drilling in selected areas of the Gulf of Mexico, while simultaneously banning drilling off much of the coast of Florida until 2022. It is estimated that the proposed drilling area known as Gulf Lease Sale Area 181 will yield over 1.2 billion barrels of oil over 5 trillion cubic feet of natural gas. The Senate-passed bill stands in stark contrast to the much more expansive House bill (H.R. 4761) that allows for offshore drilling in most coastal areas of the U.S. H.R. 4761 was passed earlier this summer, and its supporters have been waiting for Senate action on similar legislation. Passage of S. 3711 will set the stage for a potentially contentious House-Senate conference session, as conferees will struggle to reconcile the two different bills. ACEC has been following both bills closely as each could result in significant opportunities for member firms involved in the energy sector. The legislation is part of a larger energy agenda that Congress has worked to pass over the last year. In 2005, Congress cleared the ACEC-backed Energy Policy Act, which included a number of provisions to encourage investment in energy infrastructure, as well as a long-term extension of the Price-Anderson federal liability protection program. Since then, the House has cleared legislation that seeks to create additional incentives for expanding refinery capacity. This legislation currently awaits Senate action.

New Course!

Fifty Legal Principles That Every Engineer Should Know—A Two-Day Design and Construction Law Immersion Course
Michael Loulakis, Esq., Wickwire Gavin
November 9-10, Washington, D.C.

This innovative program explores critical legal concepts, developments and relationships in the A/E arena, and covers what practitioners need to know to capitalize on opportunities while optimizing risk management.

Regular registration fees (until October 20):
ACEC Members $895/Non-members $1,095

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ACEC Members $995/Non-members $1,195

PDHs: 15

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Fall Professional Sales & Marketing, HR Forums At Fall Conference, September 18 In Charleston, S.C.

Are you a sales or HR professional in the A/E/C industry? These forums offer the chance for sales and HR professionals to network with peers, compare best practices and hear about the latest issues-in a convenient roundtable discussion format.

Sales & Marketing Forum, Charleston, S.C, September 18
A one-day session with discussions on mergers and acquisitions, developing effective marketing plans, presentation techniques, training requirements, marketing, research and analysis, and structuring marketing/sales teams.

Click here for more information and to register.

Human Resources Forum, Charleston, S.C., September 18
A one-day session with discussions on health benefits for retirees, incentive plans, recruitment/retention, travel/relocation policies, best practices and a review of our benchmarking survey.

Click here for more information and to register.

August Online Seminars

August 9: Get in Shape! Today's Fitness Plan for Your Presentations
Joanne G. Linowes, Linowes Executive Development International
Click here for more information and to register.

August 23: Top 10 Business Trends from ACEC's 2006 Industry Survey
Paul Haglund, Greeley and Hanson; Jill Holcomb, ACEC
Click here for more information and to register.

August 30: Design and Delivery: Using Technology for Better Teamwork
Jonathan Knowles, Autodesk, Inc.
Click here for more information and to register.

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