"We were very thrilled when the American Jobs Creation Act provided tax incentives for contractors in the renovation and new construction marketplace," said PHCC Vice President Lake Coulson. "Our Jan. 4 comments to the IRS are designed to provide a construction-specific perspective that may be helpful to the IRS as it formulates the regulation to implement the legislation."
The AJCA incentives include a 3 percent reduction in 2005-2006 and a 6 percent reduction in 2007-2009 for projects through which the value of the renovated property is increased and expenses for such renovation or remodeling are capital expenses. Some areas PHCC is hoping will be considered as eligible for the new tax incentive include plumbing/heating/cooling appliances and generators typically used at a construction site.
Publication date: 01/16/2006