AGC has learned that the final rulemaking requiring Federal contractors and subcontractors to use the E-Verify system administered by the Department of Homeland Security, U.S. Citizenship and Immigration Services, as the means of verifying that certain of their employees are eligible to work in the United States will be published November 14, 2008. The rulemaking will take effect January 15, 2009.

The Federal Acquisition Regulation (FAR) Council included several AGC-suggested provisions in the final rule, including: extending the time to permit Federal contractors to participate in the E-Verify program from 30 to 90 days; providING a longer period after this initial enrollment period – 30 calendar days instead of 3 business days – for contractors to initiate verification of existing employees who have not previously gone through the E-Verify system when they are newly assigned to a covered Federal contract; increases the threshold for prime contracts above the simplified acquisition threshold ($100,000) instead of the micro-purchase threshold ($3,000); and, provides contractors the option of verifying all employees of the contractor, including any existing employees not currently assigned to a Government contract.

An advance copy of the 274 page final rule is available here.

Further information on registration for and use of E-Verify can be obtained here.

House Speaker Nancy Pelosi (D-Calif.) on November 5 urged enactment of the $61 billion economic recovery package the House passed in September, which would have provided $30 billion in supplemental appropriations for many federal construction programs, when Congress reconvenes  the week of November 17.   The bill failed when the Senate was unable to pass a similar measure.  She did add, however, that the final passage of such legislation depends on cooperation from Senate Republicans and President Bush.

AGC continues to press Congress to enact an economic recovery package with infrastructure investment as soon as possible to prevent further job losses in the industry and to create additional job opportunities for contractors and their workers.

Earlier last month, Speaker Pelosi instructed all Democratic Congressional Leaders to hold hearings on the necessity and effectiveness of an economic recovery package that would include a substantial infrastructure investment component.  The Speaker has also indicated that Congress may consider another economic recovery package with a larger infrastructure component when the new Congress convenes next year.

On November 3 AGC submitted comments to the IRS in response to proposed regulations providing guidance to taxpayers in the home construction industry.  Specifically, the proposed regulations provide guidance on two issues: accounting for long-term construction contracts that qualify as home construction contracts under §460 of the Internal Revenue Code; and changes in method of accounting for long-term contracts under  §460.  

Generally, §460 requires taxpayers to use the percentage-of-completion method (PCM) to account for taxable income from any long-term contract, but there is an exception from this general rule for home construction contracts.  Taxpayers that qualify for the home construction contract exemption can use methods such as the completed contract method.  The proposed regulations are intended to expand the scope of the home construction contract exemption. 

To view a copy of AGC’s letter, click here.

AGC PAC raised and spent more than $1,000,000 to impact the 2008 election cycle and support more than 200 construction-friendly candidates for federal office. For specifics on AGC PAC influence and grassroots campaigns, check out the 2008 AGC PAC election report.

The 111th Congress will be sworn in January 6, 2009. The Congress will consist of larger Democratic majorities in both the House and Senate. In addition to the election results, there will be congressional leadership and committee changes as well as new cabinet posts.

It is important for AGC members to continue its 90 year history of working in a bipartisan fashion to promote the needs of the nation's construction industry. AGC looks forward to bipartisan work on pensions, immigration and long-term programs to invest in America's infrastructure, including transportation reauthorization, clean water infrastructure and investment in federal buildings. With strong Democratic majorities in both the House and Senate, AGC will work to show the impact of tax, health care and labor issues on the businesses that are members of the AGC.

AGC has developed a Web page that contains information intended to inform AGC members on the role they can play in advocating for building a better construction industry, as well as a document titled New President, New Congress, New Threats and Opportunities.