Early this morning following a marathon mark-up, the House Ways and Means Committee voted 26-19 along party-lines to approve its portion of the House GOP reconciliation bill. Of note, the legislation makes the SWACCA-advocated pass through deduction permanent and increases it from 20% to 23%. Additionally, the bill includes SWACCA-advocated provisions that revive the favorable expensing provisions from the 2017 Tax Cuts and Jobs Act for machinery and equipment through 2029.
Importantly, the legislation does not include offsets to the bill that SWACCA opposed, including a cap on the deductibility of employer-provided health insurance premiums and changes to the tax treatment of municipal bonds. The legislation also does not eliminate the SWACCA-supported bonus credit for paying prevailing wages and using apprentices on projects receiving tax credits under the Inflation Reduction Act. This victory is limited, however, because the bill proposes to phase-out almost every IRA clean energy tax credit by 2031.