1. Comment Period Closes on IRAPs
On August 26, the Department of Labor (DOL) closed their 60 day comment period for their proposed rule on the creation of Industry Recognized Apprenticeship Programs or IRAPs. NECA submitted comments to the DOL encouraging them to make the construction industry exemption permanent and to address other deficiencies within the proposed rule, like the potential for conflicts of interest and the use of a narrow definition of construction. In addition to NECA’s comments, NECA members submitted thousands of individualized comments, showing the Department of Labor our concerns with the proposed implementation of this rule and its potential negative effects on our industry should the exemption be removed or limited. Lastly, NECA along with the IBEW submitted a joint letter again urging the Department to expand their definition of construction and encouraging the final rule to include a permanent exclusion for the construction industry.
NECA’s Look Ahead: Although the comment period has closed, NECA Government Affairs will continue to work with policy makers to ensure our industry remains insulated and our gold standard apprenticeships are not tarnished in any way. Due to the extreme number of comments, almost 400,000, the timeline for publishing the rule remains unclear but it is certain that the construction industry made it’s voice heard.
2. Clarification on the Treasury Department’s Final Rule on 199A
Earlier this year, the Treasury Department issued final rules on 199A. The 199A section provides both individuals and trusts with a 20 percent deduction for certain income earned directly or through pass-through entities, excluding employee wage income, (Qualified Business Income, or QBI), subject in certain cases, to wage and/or asset basis limitations. A Treasury paper from May suggests that, the amount of pass-through income disqualified by the Section 199A limitations could be 40 percent, not 9 percent.
NECA’s Look Ahead: The S-Corp Association, of which NECA is a board member, released a detailed analysis of what this means for those NECA members who are organized as an S-Corporation. The full article can be found here.
3. District 6 Summer Meeting Breaks NECAPAC Records
At the District 6 Summer Meeting this week, NECA contractors raised a record-breaking $175,945 for NECAPAC! NECA thanks the contractors in Alaska, Washington, and Oregon for their incredible support this week.
NECA’s Look Ahead: Nine contractors renewed their PLC memberships at the meeting and several chapters made unparalleled contributions to NECA’s administrative fund.