3% Withholding Repealed

U.S. House passed last legislative step for full repeal of law that would force governments to withhold 3% of payments to all contractors until tax commitments are met

Agc Seal 10721487

Today, the U.S. House of Representatives passed H.R. 674, a bill to repeal the 3% withholding law. The vote passed 422 to 0 and will be sent to the president for his signature. Today’s legislative victory was the culmination of over five years of work by AGC, AGC Chapters, AGC members and coalition partners.

The multiyear campaign produced a significant bipartisan victory in an era when bipartisanship seldom happens. During the repeal campaign, AGC members made a concerted effort to get cosponsors, educate industry partners such as public officials, subcontractors and suppliers and get 3% repealed in 2011. AGC members from all regions of the country, all types of construction and all types of occupations within construction firms sent emails, made phone calls and made visits urging members of Congress to support repeal.

AGC would like to thank the tens of thousands of members who heeded the call and helped make today’s victory possible – including its own Government Affairs and Public Affairs teams. The industry faces many legislative challenges in the coming months and AGC hopes the membership will remain as politically active in the future.