NSSGA welcomed the release of a tax reform plan from the House of Representatives today that includes some key elements such as deductions and exemptions that the association fought to preserve.
“While we need to look further into how this proposal impacts the aggregates industry, particularly related to bonds, we appreciate the preservation of some of the deductions that help businesses in our industry,” said Laura O’Neill-Kaumo, NSSGA senior vice president of government and regulatory affairs. “This is the start of a conversation that will occur between the two chambers, and they are bound to have some competing visions. We look forward to being a part of the dialogue moving forward.”
NSSGA recently sent a letter to members of the House Ways and Means Committee explaining the benefits of including percentage depletion, Like-Kind Exchanges and the LIFO accounting method in the bill.
Percentage depletion recognizes the unique nature of investments in resources, such as aggregates, that require significant financial commitments to deliver a competitive product at a low margin. Like-Kind Exchanges are commonly used in commercial real estate transactions that aggregates operations can utilize in acquiring new sites.
Additionally, the bill permanently sets the corporate tax rate at 20 percent and the pass-through rate at 25 percent. It also repeals the estate tax after six years and doubles the exemption until then.
However, there are concerns that this tax bill eliminates Private Activity Bonds commonly used as a means of funding infrastructure projects.
NSSGA will continue to review the bill and advocate for the industry as Congress proceeds on tax reform.