FOR IMMEDIATE RELEASE
May 11, 2004
CONTACT: Kevin Schweers
SENATOR HUTCHISON AMENDMENT TO JOBS ACT PASSES
Promotes American Workers by Including the Architectural and Engineering Industry
WASHINGTON, DC -- The U.S. Senate approved an amendment to the JOBS Act introduced by Senator Kay Bailey Hutchison (R-TX) to make architectural and engineering services firms eligible for the new production activity tax deduction that will replace the Extraterritorial Income (ETI) program. The amendment was adopted by voice vote.
"This amendment promotes good jobs in the U.S., and it ensures that Congress does not exclude an entire industry from receiving the new tax deduction," Sen. Hutchison said. "Architectural and engineering services firms should not be singled out for a significant tax increase."
Architectural and engineering firms, along with manufacturing companies, have been covered by the ETI program and its predecessors since 1971. The JOBS Act repeals ETI and replaces it with a tax deduction designed to offset the tax losses, stimulate economic expansion and promote job growth. Architectural and engineering services are the only sector that previously received ETI benefits but are excluded from the tax reductions in the new bill.
"Architectural and engineering firms are particularly vulnerable to overseas companies. We must do everything possible to stem the outsourcing of professional jobs from our country. This deduction will help these firms compete and keep jobs in the U.S.," Sen. Hutchison said.
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