ACEC ACTION ALERT

3% WITHHOLDING MANDATE — THE TIME FOR REPEAL IS NOW

ACEC is teaming with the U.S. Chamber of Commerce and over 100 other business associations in launching a major grassroots effort to repeal the onerous three percent withholding mandate. As you may know, starting in 2013, federal, state, and certain local governments will be required to withhold three percent from contracts and payments owed to engineering firms and other government contractors. Intended to be a tax enforcement mechanism, this new mandate will place significant cash flow and administrative burdens on engineering firms. The mandate will also impose huge costs on your government clients. In fact, the Department of Defense has estimated that it will cost the agency $17 billion to implement the mandate.

Legislation is gaining support in the House and Senate to repeal the withholding mandate, but we need your help as we work to add additional House and Senate cosponsors to the repeal bills. ACEC strongly supports H.R. 674, introduced by Representatives Wally Herger (R-CA) and Earl Blumenauer (D-OR), and S. 89/S. 164, introduced by Senators David Vitter (R-LA), Scott Brown (R-MA), Olympia Snowe (R-ME), and Amy Klobuchar (D-MN). These bills have attracted bipartisan support, but your voice is needed to push repeal of 3% withholding over the finish line.

ACEC Members are encouraged to fax a letter of support to congressional offices. Click here to go to ACEC's Legislative Action Center. After logging on with your e-mail address, you will be taken to a page with simple instructions for sending a letter to your Representative and Senators. Fax numbers will appear in the address block at the top of the letter. ACEC members are encouraged to print the letters on their company letterhead, include firm-specific information, and FAX the letters to the congressional offices.