Engineering Inc. - July/August 2003 - 9

maintain engineering services as an in-house function, OMB com- mittee
chairman. Also it's further proof mented in its final rule that no clearly
commercial activity, whether that the collective action of ACEC mem- A&E
services or any other type of service, should be sealed off from bers can
truly make a difference in pro- competition. moting good public policy.
ACEC is currently meeting with OFPP to review the specific The new law
also lowers the tax rate for guidance that will be given to agencies as
they open up engineering dividends and capital gains to 15 percent.
functions to competition from the private sector. The Council will The
reduced individual tax rates that were continue working to ensure that all
A-76 competitions will be con- enacted in 2001 and set to take effect in
ducted in full compliance with QBS. 2006 were accelerated and will now
take effect retroactively to January 1, 2003. Gregs Thomopulos TEA -21
Reauthorization Proposals Still Businesses will now be permitted to take a
ACEC International Pending in Congress 50 percent depreciation deduction up
Committee Chairman The House and Senate are expected to consider proposals
to reau- from 30 percent for new equipment and thorize the Transportation
Equity Act for the 21st Century TEA- capital expenses. Small businesses
can now expense $100,000 in new 21 sometime this summer, although initial
timelines for drafting equipment purchases up from $25,000 . and committee
consideration are slipping. Association Health Plan Legislation Passes The
primary issues yet to be resolved include overall funding for House; Stiff
Senate Consideration Awaits highways and transit. Legislation to create a
national set of standards regarding employer- ACEC is working to ensure a
multi-year bill is passed before TEA- provided health insurance passed the
House but now faces tougher 21 expires on September 30, 2003. consideration
in the Senate. In May, the Bush Administration released its $247 billion
blue- The ACEC-supported Association Health Plan legislation, titled:
print to reauthorize the federal highway and transit program over the The
Small Business Health Fairness Act of 2003, would give small next six
years. The proposal represents a $19 billion increase in businesses better
access to affordable healthcare, and trim the ranks spending over TEA-21,
but is substantially less than the spending of the nation's uninsured by
allowing smaller businesses to pool goals that have been put forward by
both the House and Senate together through trade associations to purchase
health insurance transportation committees. from a provider, or
self-insure in the same manner as that of large The leadership of the
Senate Environment and Public Works employers and labor unions. Committee
intends to offer a $311.5 billion proposal, while the The advantage to
ACEC member firms House Transportation and Infrastructure Committee
leadership has is lower cost due to a national set of stan- set a $375
billion goal. ACEC supports a number of options to dards rather than
different standards for increase funding for transportation, including
increasing the federal individual states that have to be followed, motor
fuel tax and indexing it to the consumer price index. said Derrell
Johnson, president of ACEC's Tax Bill Signed; Foreign Income Exclusion
Life/Health Trust. Complying with a sin- Saved; Depreciation Benefits
Boosted gle, national standard would not only be President Bush signed a
$350 billion tax package into law on May less costly, but also we would be
on the 20. The new law includes a number of tax benefits for businesses s a
m e footing as large firms and labor unions in regards to the ability to
offer Derrell Johnson and individuals, and also preserves an important tax
benefit for engi- ACEC Life/Health Trust neering firms with employees
overseas. coverage. ACEC Chairman Eric Flicker and President During Senate
consideration of the tax bill, several provisions were added to offset the
costs of the package, including one to repeal Sec- ACEC President Dave
Raymond met with tion 911 of the tax code. Section 911 provides a limited
exclusion House Education and the Workforce Committee Chairman Rep. from
taxation of income earned by U.S. citizens working abroad. John Boehner
R-Ohio to reaffirm the bill's importance to ACEC Since U.S. workers are
subjected to U.S. income taxes in addition member firms, and vowed
continued support in getting the bill to taxation by the foreign country
where they work Section 911 passed in the Senate. ACEC members have
undertaken a grassroots allows up to $80,000 in income to be excluded to
lessen the impact effort of writing their Senators to urge support for the
legislation. of this double taxation. FOR MORE NEWS ACEC and its industry
allies mobilized a grassroots campaign that eventually persuaded House and
Senate conferees on the tax package For weekly legislative news, to drop
the offsets, including the Section 911 provision. visit ACEC's Last Word
online This is a big win for ACEC and all industries who send employ- at
www.acec.org. ees overseas, says Gregs Thomopulos, ACEC International Com-
l August 2003 9 July ENGINEERING INC.
http://www.acec.org
Engineering Inc. - July/August 2003

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