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
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