March 2010

Repealing the withholding provision | Capitol Hill

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Repealing the withholding provision

NRCA continues to pressure Congress to repeal government withholding legislation

by Duane L. Musser
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In 2006, Congress passed a law requiring federal, state and many local governments to withhold 3 percent from nearly all payments made to contractors for goods or services. If this law is allowed to take effect as scheduled in January 2012, it will cause serious disruptions for roofing contractors engaged in government work.

A misguided law

Getting Congress to repeal this misguided law remains a priority for NRCA though the issue has not received much attention from lawmakers in recent months.

In early 2009, NRCA worked with Congress and the Government Withholding Relief Coalition to have the law's original effective date—Jan. 1, 2011—delayed by one year. NRCA's ultimate goal is passage of legislation (H.R. 275)...

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