Transcript The Voice of America’s Engineering Industry Federal Legislative and Regulatory Update for ACEC-Pennsylvania Katharine Mottley Director of Tax & Regulatory Affairs ACEC March 11, 2015

The Voice of America’s Engineering Industry
Federal Legislative and
Regulatory Update for
ACEC-Pennsylvania
Katharine Mottley
Director of Tax & Regulatory Affairs
ACEC
March 11, 2015
The Voice of America’s Engineering Industry
Tax Reform
Former Chairman Camp’s legislation may
provide ideas but new committee leaders
want to pursue their own approaches to tax
reform
Need to read the tea leaves from the
President, new Ways and Means Chairman
Paul Ryan (R-WI), and new Senate Finance
Chairman Orrin Hatch (R-UT)
The Voice of America’s Engineering Industry
Tax Reform: President’s Budget
Priorities: HTF, corporate tax reform, tax
relief for lower/middle income people
Key provisions
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Tax on overseas profits to help pay for $478
billion highway bill
No proposal for long-term financing of HTF
Provides for lowering top corporate rate from 35
to 28 percent; no equivalent drop in tax rate for
passthroughs
Cash accounting expansion
The Voice of America’s Engineering Industry
Tax Reform: President’s Budget
Key provisions
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R&D tax credit permanent
Section 179 expensing permanent at $1 million
Section 179D permanent
SECA tax on owners/partners of professional
services S corps and partnerships
Eliminates oil and gas benefits, reinstates
Superfund excise taxes
Expands estate tax, increases taxes on highincome individuals
The Voice of America’s Engineering Industry
Tax Reform: Senate Finance
Chairman Hatch: comprehensive tax reform
a top priority
Established bipartisan working groups
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Business income; individual income; savings &
investment; international; community
development & infrastructure
Currently receiving input
Directed to provide legislative recommendations
by end of May
Timeframe suggests short-term HTF extension
The Voice of America’s Engineering Industry
Tax Reform: Ways and Means
Chairman Ryan stated a preference for
comprehensive tax reform
Ryan: addressing the individual side of the
tax code not possible this year, but
business tax reform possible if finished by
the summer (presidential election cycle)
Unclear what business tax reform means
No gas tax increase and no repatriation
outside of tax reform – unclear how HTF will
be funded
The Voice of America’s Engineering Industry
Tax Reform: ACEC Priorities
Comprehensive tax reform that treats all
business structures equally
Sustainable financing for HTF
Protect key provisions, such as cash
accounting, Section 199
Defend against tax increases such as the S
corp payroll tax
The Voice of America’s Engineering Industry
SEC Municipal Advisor Rule
Section 975 of Dodd-Frank requires
“municipal advisors” to register with the
SEC and the MSRB
Municipal advisors provide advice to or on
behalf of a municipal entity or obligated
person with respect to municipal financial
products (e.g. derivatives) or the issuance
of municipal securities, including advice
with respect to structure, timing and terms
The Voice of America’s Engineering Industry
SEC Municipal Advisor Rule
Firms can choose to register, and comply
with associated regulations
Firms can rely on the exemptions in the rule
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Engineering exemption
General information
Responding to RFP/RFQ
Independent registered municipal advisor
exemption
The Voice of America’s Engineering Industry
FLSA Overtime Pay Rule
President directed DOL to update rule that
determines which employees must be paid time
and a half for hours worked over 40 per week
Current threshold below which overtime must be
paid: $455 per week/$23,660 per year
Expected threshold: between $40,000 and $50,000
per year
Rule may limit the use of exemptions (e.g.
professional, administrative, executive) unless
50% of employee’s duties are covered by an
exemption
The Voice of America’s Engineering Industry
AASHTO audit guide
Updated 2015 National Compensation Matrix
published by the joint AASHTO-ACEC NCM
Taskforce (http://audit.transportation.org/) -- 3%
escalation on the 2014 NCM
2016 NCM will be full refresh with new survey data
ACEC currently engaging with AASHTO on fullscale update to the 2012 Audit Guide -- major
issues include (but not limited to) treatment of
uncompensated overtime, bonuses, vehicle costs,
and labor testing
The Voice of America’s Engineering Industry
AASHTO audit guide
2015 AASHTO Audit Subcommittee Conference
July 19-22 in Portland, OR
Questions and issues can be directed to Vivian
Moeglein at [email protected] or 202-682-4369
The Voice of America’s Engineering Industry
Questions
Q&A
Contact information:
Katharine Mottley
Director of Tax & Regulatory Affairs
American Council of Engineering Companies
[email protected]
(202) 682-4306