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NECA Legislative Top Three: 8/10/18

Aug 09, 2018

1. NECA Wins in Primary Elections This Week

On Tuesday this week, four states (Michigan, Missouri, Kansas, and Washington) held primary elections. A special election was also held for Ohio’s 12th Congressional district. The results of the primary elections and the special election were overwhelmingly positive for NECA-supported candidates.

NECA’s Look Ahead:

Michigan

NECA-supported candidates who won their primary election:

  • Bill Huizenga
  • Daniel Kildee
  • Fred Upton
  • Tim Walberg
  • Debbie Dingell
  • Brenda Lawrence

Missouri:

NECA-supported candidates who won their primary election:

  • Ann Wagner
  • Sam Graves

In Missouri, NECA, along with our labor partners, had a massive win with the overwhelming rejection (67 percent No vs. 32 percent Yes) of “Proposition A,” which would have turned Missouri into a "right-to-work" state.

Kansas

NECA-supported candidates who won their primary election:

  • Roger Marshall
  • Kevin Yoder
  • Ron Estes

Washington:

NECA-supported candidates who advance to the General Election (Washington has a top two primary system):

  • Susan Hutchison
  • Dan Newhouse
  • Cathy McMorris Rodgers
  • Derek Kilmer
  • Dino Rossi
  • Rick Larsen

Ohio 12th Congressional District:

NECA-endorsed Republican candidate Troy Balderson won a narrow victory over Democrat Danny O’Connor to fill the remaining term of former Rep. Pat Tiberi, who retired early to run the Ohio Business Roundtable. Rep-Elect Balderson is likely to face O’Connor again in November.

2. Proposed 199A Rules Released

The Treasury Department released important new rules on addressing the pass-through deduction. Here are some of the details:

  • The rule defines what qualifies as a trade or business, and then requires that any aggregated group only include trades or businesses.
  • The same group of owners must own a majority stake of each business in the aggregated group.  Owners are allowed to apply family attribution rules to measure their ownership stake, and minority owners may rely on the ownership of the entire group to qualify for aggregation.
  • None of the aggregated businesses may be a "specified services" business.

Left out of the rule was guidance on how to address tiered ownership and how to stop owners from gaming the rules by disaggregating their businesses. In other good news, the proposed rules clarify that Electing Small Business Trusts get the deduction, just like any other owner of a pass-through business.

NECA’s Look Ahead:

The proposed rules are a good start to making the pass-through deduction workable for Main Street businesses. While there are many important details that need clarification, the overall approach taken by Treasury is positive and should be applauded.  NECA’s goal is to make certain the 20-percent deduction is available to real businesses with real employees. Treasury has set a 45-day comment period on the rules and scheduled a public hearing at the IRS on October 16th. NECA will use the comment period to clarify our remaining concerns..

3. Start Setting Up Your August Recess Congressional Meetings

Members of the House of Representatives will be home in their districts for the entire month of August. A reported 98 percent of Congressional offices value in-district site visits as a way to engage with constituents. This is your opportunity to meet with your Representative in the district and discuss NECA’s priority issues. Members of Congress look forward to opportunities to visit constituents at NECA-IBEW Training Centers, jobsites, NECA chapter offices, or company headquarters. Call your local district office and request a meeting at one of these locations.

NECA’s Look Ahead:

In-district visits are your chance to share your story and talk about the electrical construction industry. Be prepared for your meeting by reading up on the top issues affecting the industry and having information pertaining to your local area to show the impact NECA contractors make in the district. Some important statistics to have on hand include the number of employees you have, or a key project your company completed.

Don’t forget, each in-district visit will earn your chapter five points in the 2018 Chairman’s Challenge!