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Engineering Inc. magazine

With critical tax provisions scheduled to expire after 2025, ACEC is fighting for a favorable outcome for engineering firms.

At the end of 2025, the entire individual tax title of the 2017 Tax Cuts and Jobs Act (TCJA) will expire. That means that—unless Congress acts—all individual tax rates will go up, the Section 199A 20 percent passthrough tax deduction will disappear, and research and development (R&D) amortization will continue to be a requirement. In addition, the corporate tax rate will also likely be part of the 2025 tax debate.

What does it all mean for engineering firms? Clearly, there is a lot at stake.

The 2017 tax law was a boon to the indus­try—with ACEC and its grassroots lobby­ing efforts fighting hard to make it happen, says Steve Hall, executive vice president of ACEC. Of course, the winner of the presidential election and a new makeup of the U.S. House and Senate will no doubt influence tax policy debate in the coming months. The consequences of those discussions will be huge for the engineering industry—and ACEC is prepared to redouble its efforts.

“With the law back on the table in Congress next year, it is critical that we protect these gains and also fix more recent issues, with restoring the deductibility of R&D expenses at the top of the list,” Hall says. “The stakes couldn’t be higher. If Con­gress fails to do the right thing, firms will see their taxes increase at a time when they need to invest more in their workforce and in emerging technologies.”

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Date

January 30, 2025

Category

ACEC NEWS / ADVOCACY

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