Jan. 31, 2005: Contractors Are Eligible For New Tax Incentive
WASHINGTON - The Internal Revenue Service (IRS) has announced that construction and renovation contractors, including HVACR and plumbing contractors, are eligible this year for a new 3 percent domestic production tax incentive on qualifying projects. The tax incentive increases to 6 percent in 2006, and 9 percent in 2010.
"Any tax cut is always a good thing for any business," said Plumbing-Heating-Cooling Contractors-National Association (PHCC) member Mark Giebelhaus of Marlin Mechanical, Phoenix, Ariz. "Considering the thin margins that most contractors work with, a 3 to 6 percent reduction in taxes can be a significant benefit to growing our businesses."