Engineering companies receive a 9% tax deduction

Oct. 14, 2004
Deduction is part of the recently passes American Job Creation Act

Deduction is part of the recently passes American Job Creation Act

U.S. engineering companies recently received a 9% income tax deduction with the final Congressional passage on Oct. 11 of the American Jobs Creation Act (H.R. 4520). President Bush is expected to sign the bill in to law, and the benefit is to be phased in over a six-year period.

According to ACEC President David Raymond, the deduction created by H.R. 4520 is primarily targeted toward manufacturing as a means to redress job loss in that sector. “The primary objective of this bill is to create jobs and stimulate economic expansions,” Raymond says. ACEC mounted an aggressive lobbying campaign to include engineering services and maintains that the final version of the bill should treat large and small businesses equally, a position that was adopted by House and Senate negotiators. “Every engineering firm, no matter what their size, is eligible for this tax cut,” Raymond says.

Voice your opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!

Sponsored Recommendations

Electrical Conduit Comparison Chart

CHAMPION FIBERGLASS electrical conduit is a lightweight, durable option that provides lasting savings when compared to other materials. Compare electrical conduit types including...

Don't Let Burn-Through Threaten Another Data Center or Utility Project

Get the No Burn-Through Elbow eGuide to learn many reasons why Champion Fiberglass elbows will enhance your data center and utility projects today.

Considerations for Direct Burial Conduit

Installation type plays a key role in the type of conduit selected for electrical systems in industrial construction projects. Above ground, below ground, direct buried, encased...

How to Calculate Labor Costs

Most important to accurately estimating labor costs is knowing the approximate hours required for project completion. Learn how to calculate electrical labor cost.