As prior experience has shown, changes in the tax law can have significant implications for specific industries. The engineering and construction industry is no exception, and the current tax reform proposals may have a more meaningful impact than anything since 1986. Further, a possible agreement between Congress and the administration to fund improvement to the country’s infrastructure would be expected to drive growth in the industry and has been reflected in stock prices. Tax reform proposals should be carefully considered before sourcing services and materials and raising capital as new contracts are being proposed and negotiated.
The KPMG report addresses a number of issues raised by the House Republican “Blueprint” for tax reform that could be highly relevant to the engineering and construction industry if tax reform based on the Blueprint ultimately were enacted. Further, the potential financial statement impact is addressed, as well as actions that engineering and construction companies may consider to mitigate adverse or to optimize favorable outcomes of possible enactment.
Read a March 2017 report [PDF 125 KB] prepared by KPMG LLP: What’s News in Tax: Tax reform considerations for engineering and construction companies
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.