November 6, 2008
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INFRASTRUCTURE
Speaker Pelosi Renews Call for New Stimulus Bill
TAX AND FISCAL AFFAIRS
AGC Comments on Proposed IRS Regulations on Accounting for Home Construction Contracts
ELECTION
AGC PAC Pushes AGC Allies to Victory
AGC Develops Tools for Welcoming the 111th Congress

  Speaker Pelosi Renews Call for New Stimulus Bill
House Speaker Nancy Pelosi (D-Calif.) on November 5 urged enactment of the $61 billion economic recovery package the House passed in September, which would have provided $30 billion in supplemental appropriations for many federal construction programs, when Congress reconvenes  the week of November 17.   The bill failed when the Senate was unable to pass a similar measure.  She did add, however, that the final passage of such legislation depends on cooperation from Senate Republicans and President Bush.

AGC continues to press Congress to enact an economic recovery package with infrastructure investment as soon as possible to prevent further job losses in the industry and to create additional job opportunities for contractors and their workers.

Earlier last month, Speaker Pelosi instructed all Democratic Congressional Leaders to hold hearings on the necessity and effectiveness of an economic recovery package that would include a substantial infrastructure investment component.  The Speaker has also indicated that Congress may consider another economic recovery package with a larger infrastructure component when the new Congress convenes next year.

For more information, contact Marco Giamberardino at (703) 837-5325 or giamberardinom@agc.org. [ return to top ]

  AGC Comments on Proposed IRS Regulations on Accounting for Home Construction Contracts
On November 3 AGC submitted comments to the IRS in response to proposed regulations providing guidance to taxpayers in the home construction industry.  Specifically, the proposed regulations provide guidance on two issues: accounting for long-term construction contracts that qualify as home construction contracts under §460 of the Internal Revenue Code; and changes in method of accounting for long-term contracts under  §460.  

Generally, §460 requires taxpayers to use the percentage-of-completion method (PCM) to account for taxable income from any long-term contract, but there is an exception from this general rule for home construction contracts.  Taxpayers that qualify for the home construction contract exemption can use methods such as the completed contract method.  The proposed regulations are intended to expand the scope of the home construction contract exemption. 

To view a copy of AGC’s letter, click here.

For more information, contact Karen L. Bachman at (202) 547-4733 or bachmank@agc.org. [ return to top ]

  AGC PAC Pushes AGC Allies to Victory
AGC PAC raised and spent more than $1,000,000 to impact the 2008 election cycle and support more than 200 construction-friendly candidates for federal office. For specifics on AGC PAC influence and grassroots campaigns, check out the 2008 AGC PAC election report.

For more information, contact Elisa Brewer Pratt at (202) 547-5013 or brewere@agc.org. [ return to top ]

  AGC Develops Tools for Welcoming the 111th Congress
The 111th Congress will be sworn in January 6, 2009. The Congress will consist of larger Democratic majorities in both the House and Senate. In addition to the election results, there will be congressional leadership and committee changes as well as new cabinet posts.

It is important for AGC members to continue its 90 year history of working in a bipartisan fashion to promote the needs of the nation's construction industry. AGC looks forward to bipartisan work on pensions, immigration and long-term programs to invest in America's infrastructure, including transportation reauthorization, clean water infrastructure and investment in federal buildings. With strong Democratic majorities in both the House and Senate, AGC will work to show the impact of tax, health care and labor issues on the businesses that are members of the AGC.

AGC has developed a Web page that contains information intended to inform AGC members on the role they can play in advocating for building a better construction industry, as well as a document titled New President, New Congress, New Threats and Opportunities.

For more information, contact Jim Young at (202) 547-0133 or youngj@agc.org. [ return to top ]