3% Withholding Bill Marked Up by House Ways & Means Committee

On October 13, the House Ways and Means Committee marked up legislation to repeal of the 3 percent withholding tax on U.S. government contracts (H.R. 674). Repealing the 3% withholding requirement would relieve federal, state and local governments of the need to comply with significant, unfunded administrative burdens that the current rule, which is set to go into effect in January of 2013, would impose.

We expect H.R. 674 to go to the House floor the week of October 24. Stay tuned to this blog for updates on H.R. 674.