2024 has started off on rocky footing with the government funding deadline being kicked down the road yet again. As the first deadline approached without much progress, both chambers determined that the best course of action would be another Continuing Resolution (CR) to extend the funding deadline. The new funding deadlines are March 1st and 8th. Speaker Johnson agreed to a deal with Majority Leader Chuck Schumer on top line funding numbers of $886 billion for defense (3% increase) and $773 billion non-defense spending (approx. 0% increase).

Recently, Senator Patty Murray (D-WA) and Rep. Kay Granger (R-TX), who respectively chair the Senate and House Appropriations Committees, agreed to funding levels on the 12 appropriation bills and now are working on line-by-line funding for programs within those agencies.  A select group of House Republicans continue to try and undercut the spending caps set last year while the Senate continues relatively bipartisan work to fund the government at previously agreed upon levels.

On January 31, 2024, the House passed H.R. 7024, the Tax Relief for American Families and Workers Act. This bill would extend and reform crucial elements of the tax code such as the R&D deduction, bonus depreciation, and equipment expensing. The construction industry has seen significant growth over the past few years through public and private sector investments. These investments have the potential to accelerate America’s energy production, manufacturing capacity, and new construction for decades to come. The reauthorization and extension of 100% bonus depreciation and R&D equipment expensing will allow NECA contractors to capitalize on these investments by ensuring tax stability for their businesses.

NECA sent a letter to the Hill prior to the vote, urging Members of Congress to support the legislation. The bill passed under suspension of the rules with 357 members supporting it. The bill now moves on to the Senate. Ranking Member Mike Crapo (R-ID) of the Senate Finance Committee has yet to state his position on the package and would rather hold their own markup of the legislation, which may delay its passage. Senator Chuck Grassley (R-IA) recently commented about the affects it may have on President Biden’s reelection campaign.

PLC Renewals

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