Construction Industry Newsletter | Winter 2024
Harding, Shymanski & Company, P.S.C.
We believe in relationships beyond the numbers.
Tax Framework Agreement Sets Direction for Potential Business and Individual Tax Relief
In a significant development, a new tax framework agreement has emerged, potentially reshaping the landscape for both businesses and individuals. Crafted with an eye toward providing relief, this agreement heralds a potential shift in tax policy that could benefit taxpayers across various sectors.
Key highlights of the agreement include provisions aimed at streamlining tax processes, reducing compliance burdens, and fostering an environment conducive to economic growth. For businesses, this could translate into enhanced opportunities for investment, expansion, and innovation. Similarly, individuals stand to gain from potential tax relief measures designed to alleviate financial strain and promote economic stability.
Construction Employment Kick-Starting the Reindustrialization of the American Economy
The resurgence of construction employment is poised to play a pivotal role in revitalizing the American economy, marking a significant stride towards reindustrialization. As the construction sector experiences a notable uptick in hiring, it signals a broader trend of economic recovery and resurgence in key industries.
This surge in construction employment not only creates job opportunities but also fuels momentum for infrastructural development and expansion. With increased investments in construction projects, there emerges a ripple effect, stimulating growth across related sectors and bolstering overall economic resilience.
As construction activity continues to gain momentum, it underscores the vital role this sector plays in driving the reindustrialization agenda. From infrastructure upgrades to commercial development, the construction boom serves as a catalyst for job creation, innovation, and sustained economic progress.
Amidst evolving economic landscapes, the resurgence of construction employment stands as a beacon of optimism, propelling the reindustrialization narrative forward and fostering a climate of growth and opportunity for the American workforce.
Driving Productivity in Construction Hinges on Technology Adoption
The construction industry is rapidly undergoing a digital transformation, with emerging technologies reshaping how companies plan, design, build, and manage projects. Companies that embrace this evolution stand to gain a competitive advantage, while those that ignore it risk falling behind.
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IRS Announces Details for ERC Voluntary Disclosure Program
On Dec. 21, 2023, the IRS?announced?the details of an anticipated employee retention credit?Voluntary Disclosure program ?(ERC-VDP) for employers who claimed and received an ERC refund for a quarter but were not eligible. The program allows claimants to repay ERC at a reduced rate of 80% of the credit.? In addition, the program waives penalties and interest on the full amount, not just the 80% returned. The IRS is only accepting applications for the program until March 22, 2024. Accepted applicants will be required to execute a closing agreement stating they are not entitled to ERC and must provide the name and contact information for any preparer or advisor who assisted in claiming the ERC. The IRS has also published a set of? FAQs relating to the ERC-VDP.?
The IRS also announced that they are issuing another round of letters proposing adjustments to tax issued to 20,000 employers that claimed an erroneous or excessive amount of ERC.?
The IRS Launches the Pre-Filing Registration Tool for Clean Energy Credits
On Dec. 22, 2023, the IRS announced the launch of the IRA/CHIPS Pre-Filing Registration tool. This tool will allow qualifying businesses, tax-exempt organizations, or entities such as state, local, and Indian tribal governments to monetize a tax credit with an elective payment or credit transfer election as provided by the Inflation Reduction Act of 2022 (the Act) and section 48D advanced manufacturing investment credit created by the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of 2022. The tool can be accessed at this IRS web page. The IRS released Publication 5884 to assist taxpayers on how to use the tool. See RSM US LLP’s prior?article?on the monetization of credits under the IRS/CHIPS.
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Harding, Shymanski & Company, P.S.C. is a public accounting firm with offices in Evansville, Indiana, and Louisville, Kentucky. We are one of the largest accounting firms in Southern Indiana and Kentucky, providing experienced professionals who look beyond the numbers to the heart of complex issues.??
Our clients range in size from small proprietorships to billion-dollar corporations, from closely-held and family-owned businesses to publicly traded firms, and span nearly every industry. They all have one thing in common: they count on our expertise to capitalize on their opportunities and make the best of their challenges.