Take Action Today: House to Vote to Repeal 3% Withholding Next Week

Today, the Committee on Ways and Means approved, by unanimous consent, H.R. 674, a bill to repeal 3 percent withholding.  The House is expected to vote on the bill the week of Oct. 24.  AGC is asking you to contact your representative to urge them to support passage of this legislation.

Starting Jan. 1, 2013, all federal and state contracts for goods and services will be subject to a 3% income tax withholding on each and every payment over $10,000 to a contractor.  The requirement also applies to large local governments that make $100 million or more in annual expenditures for goods and services.  This mandate will be bad for construction and must be repealed now.

AGC wants as many representatives to vote for the bill as possible in order to send a strong message to the Senate to follow suit. We are asking you and your employees to contact your representative today and urge them to cosponsor and support passage of H.R. 674.  The House bill currently has 268 cosponsors while the Senate cosponsor list has 35 signatures.

Below are four options for contacting your representative:

Use AGC’s 3 percent withholding website to find additional resources, including talking points, IRS regulations, videos on the impact of this legislation, letters sent to Congress by AGC, and ways to become involved.

Click on your state to find out if your representative has yet to cosponsor H.R. 674.

For more information, contact Karen Lapsevic at 202-547-4733 or

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