Backend Category: Advocacy

Trump Administration II Webinar: A Virtual Discussion on Coming Tax, Regulatory & Trade/Tariff Policies – Recording Available

On February 6, 2025, Daniel Bunn, President & CEO of the Tax Foundation, provided an in-depth analysis of expected federal policy changes during the second Trump administration during an MCAA webinar. A recording of the session, which was moderated by Jim Gaffney and Chuck Daniel, is now available. Don’t miss this opportunity to gain valuable insights from a leading expert in the field.

Daniel Bunn is President and CEO of the Tax Foundation. Daniel has been with the organization since 2018 and, prior to becoming President, successfully built its Center for Global Tax Policy, expanding the Tax Foundation’s reach and impact around the world. Prior to joining the Tax Foundation, Daniel worked in the United States Senate at the Joint Economic Committee as part of Senator Mike Lee’s (R-UT) Social Capital Project and on the policy staff for both Senator Lee and Senator Tim Scott (R-SC). In his time in the Senate, Daniel developed legislative initiatives on tax, trade, regulatory, and budget policy. He has a master’s degree in Economic Policy from Central European University in Budapest, Hungary, and a bachelor’s degree in Business Administration from North Greenville University in South Carolina. Daniel lives in Halethorpe, Maryland, with his wife and their three children.

MCAA Government Affairs Update for January 27, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, January 27, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Trump Administration

MCAA continued tracking new Trump nominees and appointees to job critical to MCAA members. 

Trump Announces Key Nominees, Chairs, and Acting Chairs of Several Agencies

On January 16th, 2025, President Trump nominated former Rep. Brandon Williams (R-NY), who lost re-election to New York’s 22nd Congressional District last November, as Undersecretary for Nuclear Security and National Nuclear Security Administrator. MCAA knows Williams from his time in Congress. On January 15th, President Trump announced Keith Sonderling as his nominee for Deputy Secretary of the Department of Labor. MCAA knows Sonderling well from Trump’s first term when he served as Commissioner on the Equal Employment Opportunity Commission and as Acting Wage and Hour Administrator at the Labor Department. These nominations followed Trump’s January 12th announcements of James P. Danly to be Deputy Energy Secretary (Danly served as General Counsel, Commissioner, and Chair of FERC during Trump’s first term); David Fotouhi as Deputy Environmental Protection Agency (EPA) Administrator (Fotouhi served as EPA’s Acting General Counsel during Trump’s first term); and Katharine MacGregor as Deputy Interior Secretary (MacGregor served as Deputy Assistant Secretary for Lands and Minerals Management at the Interior Department during Trump’s first term).

Last Monday, the Trump Labor Department (DOL) posted a new leadership organizational chart designating Vince Micone as the acting head of DOL, pending the confirmation of former Rep. Lori Chavez-DeRemer (R-OR) to be Secretary of Labor. MCAA is actively supporting her nomination. Acting Secretary Micone is a career civil servant who formerly served as Deputy Assistant Secretary for Operations in DOL’s Office of Administration and Management. Keith Sonderling, Trump’s pick for Deputy Labor Secretary, will serve as Senior Advisor to the Secretary while awaiting confirmation. Also on January 20th, President Trump designated Chairs and Acting Chairs of several other federal agencies of interest to MCAA, including: (1) Marvin Kaplan as Chair of the National Labor Relations Board; (2) Mark Christie as Chair of the Federal Energy Regulatory Commission; (3) David Wright as Chair of the Nuclear Regulatory Commission; (4) Andrea Lucas as Acting Chair of the Equal Employment Opportunity Commission; and (5) Andrew Ferguson as Chair of the Federal Trade Commission.

Trump Signs Energy-Related Executive Order

Among the many executive actions President Trump took last week was an Executive Order (EO) related to energy and critical minerals. The EO: (1) declares a national emergency related to energy, allowing Trump to use the Defense Production Act to bolster energy deployment; (2) accelerates permitting and regulations to expand domestic energy production; (3) expedites the permitting and development of domestic critical minerals to reduce dependence on China; and (4) facilitates the utilization of Alaska’s oil, gas, minerals, timber, and other resources. This follows the Trump Energy Department’s (DOE) announcement that it is ending the liquefied natural gas (LNG) pause instituted during the Biden Administration. DOE will now resume consideration of pending applications to export American LNG to countries without a free trade agreement with the United States.

Congress

Speaker Johnson Taps Rep. Foxx to Lead House Rules Committee in 119th Congress

On January 14th, House Speaker Mike Johnson (R-LA) appointed Rep. Virginia Foxx (R-NC) as chair of the influential House Rules Committee. Foxx is one of the most stridently anti-union members of the House. She previously served as chair of the House Education and Workforce Committee in the last Congress but was term-limited as chair in the 119th Congress. Speaker Johnson also announced two changes to the committee’s Republican roster: Rep. Morgan Griffith (R-VA), a member of the conservative House Freedom Caucus, will replace Rep. Thomas Massie (R-KY) on the committee, and first-term Rep. Brian Jack (R-GA) will take the spot previously held by Rep. Guy Reschenthaler (R-PA). Conservative Freedom Caucus members Reps. Chip Roy (R-TX) and Ralph Norman (R-SC) will remain on the panel.

House Education & Workforce Approves Oversight Plan 

On January 15th, the House Education and Workforce Committee approved its oversight plan for the next two years. The Committee’s oversight priorities include: (1) Wage and Hour oversight involving “workers, employers, and other stakeholders to consider how best to modernize federal wage and hour laws”; (2) Retirement Security and Pensions oversight focused on engaging with “workers, employers, retirees, and other stakeholders to consider how best to strengthen laws governing retirement security,” reviewing the “PBGC’s recovery efforts of amounts improperly paid under the Biden-Harris administration’s Special Financial Assistance program to multiemployer plans on the basis of deceased participants” and reviewing the Employee Benefits Secretary Administration’s enforcement activity and rulemakings implementing…ERISA; (3) Healthcare oversight dedicated to “ensuring employers have the flexibility and tools to offer workers and their families affordable, employer-sponsored health care coverage that fits their individual needs,” overseeing the “implementation of laws governing mental health and substance abuse treatment” and maintaining “the protection of ERISA preemption of state insurance law”; (4) Workplace Safety and Health oversight targeting “OSHA’s efforts” on “Biden-Harris administration regulatory efforts that burden job creators while doing little to improve workplace safety”; (5) National Labor Relations Board (NLRB) oversight dedicated to ensuring the NLRB is interpreting and implementing the National Labor Relations Act in a manner that supports workers and employers”; (6) Equal Employment Opportunity oversight scrutinizing the Equal Employment Opportunity Commission (EEOC) and the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) “to ensure proper implementation and enforcement of employment nondiscrimination laws with a specific focus on the EEOC’s implementation of the 2024 final rule on the Pregnant Workers Fairness Act and of the 2024 enforcement guidance on harassment in the workplace”; and (7) Union Accountability and Transparency Oversight focused on the Labor Department’s “implementation of the Labor Management Reporting and Disclosure Act and conducting oversight on unions, as needed, to ensure they are respecting the democratic rights of their members and properly managing their members’ dues, education funds, and pension programs.”

House Education and Workforce Committee Announces Subcommittee Chairs and Ranking Members

Also on January 15th, House Education and Workforce Committee Chair Tim Walberg (R-MI) announced the following Subcommittee Chairs for the 119th Congress: (1) Rep. Rick Allen (R-GA) as chair of the Health, Education, Labor, and Pensions Subcommittee; (2) Rep. Ryan Mackenzie (R-PA) as chair of the Workforce Protections Subcommittee; (3) Rep. Burgess Owens (R-UT) as chair of the Higher Education and Workforce Development Subcommittee; and (4) Rep. Kevin Kiley (R-CA) as chair of the Subcommittee on Early Childhood, Elementary, and Secondary Education. Separately, House Education and Workforce Committee Democratic Ranking Member Bobby Scott (D-VA) announced the following Subcommittee Ranking Members for the 119thCongress: (1) Rep. Mark DeSaulnier (D-CA) will serve as Ranking Member of the Health, Education, Labor, and Pensions Subcommittee; (2) Rep. Ilhan Omar (D-MN) will serve as Ranking Member of the Workforce Protections Subcommittee; (3) Rep. Suzanne Bonamici (D-OR) will serve as Ranking Member of the Early Childhood, Elementary and Secondary Education Subcommittee; and (4) Rep. Alma Adams (D-NC) will serve as Ranking Member of the Higher Education and Workforce Development. 

House Transportation and Infrastructure Announces Subcommittee Chairs and Ranking Members 

Last Tuesday, House Transportation and Infrastructure Committee Chair Sam Graves (R-MO) announced the new Subcommittee Chairs, Ranking Members, and Subcommittee members for the 119th Congress. The new Republican Subcommittee Chairs are: (1) Rep. Scott Perry (R-PA) as Chair of the Subcommittee on Economic Development, Public Buildings, and Emergency Management; (2) Rep. Daniel Webster (R-FL) as Chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials; (3) Rep. Mike Collins as Chair of the Subcommittee on Water Resources and the Environment; (4) Rep. David Rouzer (R-NC) as Chair of the Subcommittee on Highways and Transit; (5) Rep. Troy Nehls (R-TX) as Chair of the Subcommittee on Aviation; and (6) Rep. Mike Ezell (R-MS) as Chair of the Subcommittee on Coast Guard and Maritime Transportation. The new Democratic Subcommittee Ranking Members are: (1) Rep. Greg Stanton (D-AZ) as Ranking Member of the Subcommittee on Economic Development, Public Buildings, and Emergency Management; (2) Rep. Dina Titus (D-NV) as Ranking Member of the Subcommittee on Railroads, Pipelines, and Hazardous Materials; (3) Rep. Frederica Wilson (D-FL) as Ranking Member of the Subcommittee on Water Resources and the Environment; (4) Delegate Eleanor Holmes Norton (D-DC) as Ranking Member of the Subcommittee on Highways and Transit; (5) Rep. Steve Cohen (D-TN) as Ranking Member of the Subcommittee on Aviation; and (6) Rep. Salud Carbajal (D-CA) as Ranking Member of the Subcommittee on Coast Guard and Maritime Transportation.

Biden Administration

ERISA Industry Committee Files Lawsuit Against Mental Health Parity Final Rule

On January 17th, the ERISA Industry Committee (ERIC) filed a lawsuit against the U.S. Departments of Labor, Treasury, and Health and Human Services, seeking to invalidate the Biden Administration’s September 2024 final rule implementing the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). This rule poses many practical administrative concerns for MCAA plans based on assessment we have received from the National Coordinating Committee on Multiemployer Plans (NCCMP) and we have been raising our concerns about this rule with the new Administration. The lawsuit alleges that the final rule is unlawful because it exceeds the departments’ authority under the MHPAEA and the Consolidated Appropriations Act of 2021, violates the due process clause of the Fifth Amendment, is “arbitrary and capricious,” and violates the Administrative Procedure Act. The lawsuit also claims that the January 1, 2025, effective date for many of the final rule’s provisions is arbitrary and capricious because it did not provide enough time for ERISA-governed plans to comply with the new and “vaguely worded” regulations. The lawsuit was filed the same day the Biden Labor Department, Health and Human Services Department, and Treasury Department issued their 2024 Report to Congress on enforcement and implementation of the MHPAEA, along with an associated fact sheet. The report is notable because it includes as an appendix the entirety of a settlement agreement entered into by a Boilermakers National Plan to settle claims by the federal government that it failed to meet its Mental Health Parity Obligations.   

MCAA Issues and Interests 

Safety and Health 

MCAA Joins with CISC to Submit Comments on OSHA Heat Injury and Illness Proposed Rule 

On January 14th, the MCAA and other members of the Construction Industry Safety Coalition (CISC) submitted joint comments to the Occupational Safety and Health Administration (OSHA) on its proposed rule regarding Heat Injury and Illness in Outdoor and Indoor Work Settings. In the letter, the MCAA and other CISC members urged OSHA to develop a construction-specific heat standard rather than applying the one-size-fits-all approach outlined in the proposed rule. We also detailed the job tasks, work activities, and environmental conditions that construction employees face, which justify the need for a specialized standard, similar to what OSHA has implemented for other health and safety issues. The letter also identified major problems in the proposed rule, including: (1) the unworkable heat triggers that require revision; (2) the problematic prescriptive requirements tied to those triggers; (3) the need for flexible acclimatization procedures that allow employers to create training and protocols tailored to unique climatic conditions in different regions; and (4) the importance of straightforward training requirements that emphasize “water, rest, and shade.”

OSHA Terminates Rulemaking Extending COVID-19 ETS to Construction Workers at Healthcare Facilities

On January 15th, OSHA terminated its June 21, 2021 interim final rule (IFR) implementing an emergency temporary standard (ETS) to protect healthcare and “healthcare support” workers from occupational exposure to COVID-19 in settings where COVID-19 cases were reasonably expected (e.g.,hospitals). The MCAA had been educating OSHA, the Small Business Administration (SBA), and other federal agencies about concerns we had with the IFR. The MCAA also participated in several SBA Advisory Committee meetings to discuss these concerns and their impact on our members—particularly regarding the IFR’s inclusion of healthcare facility maintenance staff (including HVAC contractors) in its definition of “healthcare support” workers. 

Project Labor Agreements (PLAs)

U.S. Federal Court of Claims Invalidates Bids Based on PLAs Pursuant to Biden PLA Executive Order and Related FAR Council Rules

On January 19th, the U.S. Federal Court of Claims invalidated project labor agreements (PLAs) on several federal construction contract bids, ruling that PLAs are set-aside programs requiring authorization by an act of Congress. The Associated General Contractors (AGC) praised the decision and announced plans to continue “conversations with the incoming Trump Administration about the need to officially revoke President Biden’s illegal project labor agreement Executive Order and FAR Council Rules” in light of the ruling. On January 20th, the Associated Builders and Contractors (ABC) issued a press release expressing their enthusiasm for the ruling and urged its members to “continue to file protests against individual federal agency PLA mandates on a case-by-case basis and expect similar outcomes.” ABC argued that “[t]his is the best solution to defeat the Biden rule on federal contracts until a court issues an injunction against the rule or the Trump Administration rescinds it via executive action.” The group also reported that its members secured 54% of the $205.56 billion in federal construction contracts worth $35 million or more during fiscal years 2009–2023.

MCAA Urges President Trump to Maintain MCAA-Supported Executive Order on PLAs

On January 13th, the MCAA joined other members of the Construction Employers of America (CEA) in a letter to President Trump urging him to reject the Associated Builders and Contractors’ (ABC) request to rescind President Biden’s MCAA-supported executive order (EO) creating a presumption that project labor agreements (PLAs) will be used for large-scale federal construction projects valued at $35 million or more. 

In the letter, the CEA emphasized that “nothing in [President Biden’s EO] or the Federal Acquisition Regulatory Council rules implementing it prevents any contractor from submitting a bid on a large-scale federal construction project.” The letter also highlights data confirming “the productivity advantages union craftworkers have over their open shop peers,” including “lower staffing levels.”

Following our advocacy push on PLAs last Monday, MCAA was relieved to see that President Trump’s Executive Order (EO) titled “Initial Rescissions of Harmful Executive Orders and Actions,” rescinding dozens of Biden-era EOs left President Biden’s EO on PLAs intact. But given the Court of Claims decision and similar bid protests MCAA expects on federal construction contracts with a PLA, this is an ongoing fight and the outcome remains uncertain.

Registered Apprenticeship

DOL White Paper Confirms Value of Jointly Trusteed Apprenticeship Programs

Last Monday, shortly before the end of President Biden’s term, the Biden Labor Department released a white paper it sponsored affirming the benefit of jointly trusteed (union) registered apprenticeship programs. Among the findings are: (1) the construction industry trained more apprentices than any other industry from 2019 through 2022 and joint labor-management (union) programs trained 70 percent of all construction apprentices; (2) joint-labor management construction programs had a 56% completion rate compared to 46% in employer-only construction programs; (3) joint labor-management programs graduated 87% of women, 80% of military veterans, and 75% of Black apprentices in construction; (4) in construction, workers from joint labor-management programs earned exit wages of $38 per hour, while those from employer-only programs earned $25 per hour; (5) exit wages from joint construction programs were between $36 and $39 per hour for White, Black, Hispanic, male, female, and veteran construction workers; (6) the states with the highest apprenticeship exit wages for union journey workers were Massachusetts ($45 per hour), Illinois ($44 per hour), and Hawaii ($40 per hour); and (7) prevailing wage laws statistically increased construction apprenticeship wages by $3 per hour. 

Pension Reform

Most of the activity of the last two weeks on pensions occurred on the regulatory front.

DOL EBSA Updates Enforcement Policy on Missing Participants 

On January 14th, the Biden Department of Labor’s Employee Benefits Security Administration (EBSA) announced its updated enforcement policy on missing participants to provide retirement plan fiduciaries with an option to help manage small benefit amounts owed to individuals who cannot be located. Under the policy, EBSA will not act under the fiduciary provisions of ERISA against fiduciaries who transfer entire benefit payments owed to missing participants of $1,000 or less to state unclaimed property funds, if certain conditions are met. To qualify for relief under this policy, fiduciaries must meet the conditions set forth in the policy, including: (1) meeting conditions designed to protect the interest of the missing individuals; (2) adopting best practices for locating missing participants and beneficiaries; and (3) selecting state unclaimed property funds that meet the minimum standards outlined in the policy.

DOL EBSA Announces Updates to Voluntary Fiduciary Correction Program 

Also on January 14th, the Biden Department of Labor’s Employee Benefits Security Administration (EBSA) announced updates to its Voluntary Fiduciary Correction Program (VFCP), providing employers and other plan officials with more efficient ways to voluntarily correct compliance issues in retirement, health and other employee benefit plans. The most significant change is a self-correction tool that employers and other plan officials can use to remedy delays in sending participant contributions, such as employee payroll deductions, and participant loan repayments to retirement plans. Employers and other plan officials can also fix mistakes related to participant loans from retirement plans, as provided by the SECURE 2.0 Act. In addition, EBSA’s 2025 update to the VFCP: (1) expands the scope of transactions eligible for correction; (2) clarifies transactions that are already eligible for correction; (3) simplifies administrative and procedural requirements; and (4) amends the VFCP class exemption so plan officials can avoid the imposition of excise taxes.

Federal Contracting 

Trump Rescinds 1965 Executive Order Imposing Affirmative Action for Federal Contractors

Last Tuesday, President Trump signed an Executive Order (EO) entitled Ending Illegal Discrimination and Restoring Merit-Based Opportunity that rescinds President Lyndon Johnson’s 1965 EO 11246—which authorized the affirmative action obligations federal contractors have complied with for almost 60 years. The White House released a fact sheet on the EO available here. Under Trump’s EO “[f]or 90 days from the date of this order, federal contractors may continue to comply with the regulatory scheme in effect on January 20, 2025.” The EO bars the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) from holding federal contractors and subcontractors responsible for taking “affirmative action” based on race, color, sex, sexual preference, religion, or national origin. Going forward, federal contractors will be required to certify that they “do not operate any programs promoting Diversity, Equity, and Inclusion (DEI) that violate any applicable federal anti-discrimination laws” and “to agree that [their] compliance in all respects with all applicable federal anti-discrimination laws is material to” whether they are in compliance with the Federal False Claims Act. 

President Trump’s EO further directs “all executive departments and agencies to terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements…and to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.” To this end, the U.S. Attorney General must, within 120 days of the order, “submit a report to the Assistant to the President for Domestic Policy containing recommendations for enforcing federal civil rights laws and taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.” The report is to detail “sectors of concern” as far as improper DEI practices within each federal agency’s jurisdiction, examples of the most “egregious and discriminatory DEI practitioners” in each such sector and provide “a plan of specific steps or measures to deter DEI programs or principles (whether specifically denominated ‘DEI’ or otherwise)” that constitute illegal discrimination or preferences in the private sector. Each federal agency shall identify up to “nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more, state and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars,” and well as litigation and sub regulatory guidance that would promote the EO’s purpose of ending affirmative action and DEI. The EO “does not apply to lawful federal or private-sector employment and contracting preferences for veterans of the U.S. armed forces.”

Following up on this executive order, last Wednesday, the Trump Labor Department’s Employment and Training Administration (ETA) issued Training and Employment Notice (TEN) 21-24 directing state workforce agencies, state apprenticeship agencies, and other stakeholders on changes the ETA is making to federal financial assistance awards to prohibit diversity, equity, and inclusion (DEI) activities prohibited by President Trump’s order. Per the TEN, “all recipients of federal financial assistance awards are directed to cease all activities related to “diversity, equity, and inclusion” (DEI) or ‘diversity, equity, inclusion, and accessibility’ (DEIA) under their federal awards, consistent with the requirements of the EOs.” The TEN goes on to state that ETA “like all federal agencies, will provide further guidance on specific programs and activities within those programs.”

Decarbonization

Since the November elections, MCAA and its allies urged the Biden Administration to obligate as much money as possible for clean energy projects authorized under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. We were pleased to see such efforts throughout the final days of the Biden Administration.

IRS Announces $6B in Tax Credits under Section 48C Qualifying Energy Project Tax Credit 

On January 11th, the Biden Treasury Department and Internal Revenue Service (IRS) announced $6 billion in tax credits for the second round of the Inflation Reduction Act’sSection 48C Qualifying Energy Project Tax Credit for projects in 30 states. The 48C program is a competitive funding program and companies have the opportunity to apply for infrastructure project funding in the form of an investment tax credit for projects that: (1) expand U.S. clean energy manufacturing and recycling capacity ($3.8 billion in available tax credits); (2) expand U.S. critical minerals processing and refining capacity ($1.5 billion in available tax credits); and (3) drive process efficiency and reduce greenhouse gas emissions at U.S. industrial facilities ($700 million in available tax credits). 

DOE Opens Funding Opportunity for Regional Partnerships for Geothermal Data Projects 

On January 13th, the Biden Energy Department (DOE) announced that it has opened an initial funding opportunity for six awards totaling $19 million for Regional Partnerships for Geothermal Data to support partnerships to identify regional data gaps and prioritize, plan, and execute geothermal data collection and dissemination activities. The aim of the funding opportunity is to incentivize and stimulate follow-up geothermal exploration and development activities. The funding opportunity is available here

FHWA Releases $635 Million for Natural Gas and EV Refueling Infrastructure

The Biden Transportation Department’s Federal Highway Administration (FHWA) announced $635 million in grants through the Bipartisan Infrastructure Law for 49 projects to construct more than 11,500 EV charging ports and hydrogen and natural gas fueling infrastructure across 27 States, four Tribes, and the District of Columbia. Of the total, $368 million will be allocated for 42 “community projects” that expand EV charging infrastructure within communities across the country and $268 million will go towards seven “corridor fast-charging projects” that build out the national charging and alternative-fueling network along designated Alternative Fuel Corridors. A full list of grant recipients under this announcement is available here.

Energy Department Releases $960 Million for Energy Grid Modernization

The Biden Energy Department announced updates on finalized projects awarded from its Grid Deployment Office for the month of January. The announcement includes: (1) a $360 million contract with Southern Spirit Transmission to construct a new 320-mile, 525 kV High-Voltage Direct-Current (HVDC) line to create substantial new transmission capacity between the Electric Reliability Council of Texas (ERCOT) grid and electric grids in the Southeastern United States; and (2) $600 million in funding for the California Harnessing Advanced Reliable Grid Enhancing Technologies for Transmission (CHARGE 2T) project to reconductor more than 100 miles of transmission lines with advanced conductor technologies and deploy dynamic line ratings (DLR) to quickly and significantly increase the state’s system capacity to integrate more renewable energy onto the grid, and supports process improvements and investments in the workforce.

DOE Announces Funding to Develop COCapture, Removal, and Conversion Test Centers

On January 14th, the Biden Energy Department (DOE) announced $101 million in funding, subject to appropriations, for five projects to support the development of carbon dioxide capture, removal, and conversion test centers. The recipients receiving funding under this announcement include: (1) Holcim US, which plans to establish a domestic Cement Carbon Management Innovation Center at its Hagerstown Cement Facility in Maryland; and (2) Southern Company Services, Inc. of Birmingham, Alabama, which intends to maintain and operate the National Carbon Capture Center, a comprehensive test facility capable of evaluating carbon dioxide capture, removal, and conversion technologies under electric generating plant operating conditions. The recipients also include three universities in Illinois, North Dakota, and Wyoming, which plan to design and enhance carbon capture, removal and conversion test centers for power plants, natural gas and industrial facilities, and cement industry operations.

Interior Department Makes $1.5 Billion Available to Clean Up Orphaned Oil and Gas Wells

On January 15th, The Biden Interior Department released final guidance on how states can apply for $1.5 billion (up to $40 million each) in Regulatory Improvement Grant funding available under the Bipartisan Infrastructure Law to clean up polluting and unsafe orphaned oil and gas wells across the country. States are eligible for two types of Regulatory Improvement Grants: (1) Plugging Standard Grants, which are intended to incentivize states to implement standards and procedures designed to ensure that wells located in the state are plugged in an effective manner that protects groundwater and other natural resources, public health and safety, and the environment; and (2) Program Improvement Grants, which are intended to incentivize states to implement other improvements to state programs designed to reduce future orphaned well burdens, such as financial assurance reform, alternative funding mechanisms for orphaned well programs, and reforms to programs relating to well transfer or temporary abandonment. Under the guidance, states are eligible to receive a Plugging Standards Regulatory Improvement Grant of $20 million, and a Program Improvement Regulatory Improvement Grant of $20 million, for a total of $40 million per state.

Energy Department Releases $23 Billion to Retool Energy Infrastructure 

On January 16th, the Biden Energy Department’s Loan Office announced $22.92 billion in conditional financing to several energy utilities—including DTE Energy Company in Michigan, Consumers Energy Company in Michigan, and PacificCorp, a utility that serves six western states—for projects that retool or replace energy infrastructure that has stopped operating or that enables reductions in emissions blamed for global warming.

Interior Department Provides $223 Million for Water Infrastructure Projects

On January 14th, the Biden Interior Department (DOI) announced $223 million from President Biden’s Investing in America Agenda for 18 projects in Arizona, California, Hawaii, Idaho, New Mexico, Oklahoma, Texas, and Washington State for water recycling and desalination projects aimed at addressing the impacts of drought. Projects under this announcement include water infrastructure projects such as water storage, conservation and conveyance, nature-based solutions, dam safety, water purification and reuse, and desalination. The full list of projects is available here.

Energy Department Released $38 Million to Support Hydrogen Hub Development

On January 17th, the Biden Energy Department (DOE) announced $38.8 million to support planning, design, and community and labor engagement activities for two Hydrogen Hubs, including: (1) $18.8 million to the Mid-Atlantic Hydrogen Hub (Pennsylvania, Delaware, and New Jersey) for the development of hydrogen production facilities used in industrial applications (e.g., power generation and replacement fuel for process heaters) and heavy-duty transportation, including for refueling stations for trash trucks, street sweepers, cargo handling equipment, and fuel cell electric buses; and (2) $20 million for the Heartland Hydrogen Hub (Colorado, Minnesota, Montana, North Dakota, South Dakota, and Wisconsin) to leverage new and existing energy resources and infrastructure to produce commercial-scale quantities of clean hydrogen for low-carbon nitrogen fertilizer.

Other Interesting Things Since Our Last Report 

January 23, 2025

  • During his virtual appearance before the World Economic Forum in Davos, in responding to a question about LNG markets, President Trump said he will expedite the construction of power plants for artificial intelligence (AI) through an emergency declaration. He added that, “we’re going to build electric generating facilities. I’m going to get the approval under emergency declaration. I can get the approvals done myself without having to go through years of waiting.” Trump added that the generating facilities can use whatever fuel they want, making clear that his administration would not hold the AI industry to any climate targets. He even suggested the facilities use coal for emergency backup power. During the speech, President Trump also promised countries and businesses lower taxes if they bring manufacturing to the U.S. and threatened to impose tariffs if they don’t. World Trade Organization Director-General Ngozi Okonjo-Iweala said that any tit-for-tat trade wars prompted by Trump’s tariff threats would have catastrophic consequences for global growth and urged states to refrain from retaliation. President Trump also foreshadowed a fight with the Federal Reserve over its independence, saying he will “demand that interest rates drop immediately.” 
  • The U.S. Supreme Court issued an emergency stay temporarily halting a lower court injunction blocking implementation of the Corporate Transparency Act (CTA) and its beneficial ownership reporting requirements that compel millions of business entities to disclose personal information about the individuals who directly and indirectly own or control them. The case will now go back to the U.S. Fifth Circuit Court of Appeals for a trial on the merits of the legality of the CTA. While that case is pending, the Supreme Court will allow FinCEN to collect beneficial ownership disclosure information that it was supposed to begin getting on January 1, 2025 but for the injunction. Following the Supreme Court’s decision, FinCEN posted a notice on its website stating that “reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” 

January 22, 2025

  • Discussions on tax provisions—including the State and Local Tax (SALT) deduction limit—picked up steam as Rep. Mike Lawler (R-NY) met with President Trump on revising the SALT deduction and other tax provisions that GOP moderates want addressed as a condition of allowing a reconciliation tax package to move forward. Republican House members from New York, New Jersey, California, and other “blue states” have been clear they want more than a $10,000 increase. They are also discussing refinements to the SALT deduction, such as the eligibility of second properties, a marriage penalty, and some income restrictions to prevent “billionaires” from using any increased deduction.

January 21, 2025

  • At the organizational meeting of the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, Committee, Chair Bill Cassidy (R-LA), and Senate HELP Committee Ranking Member Bernie Sanders (I-VT) expressed a bipartisan commitment to prioritize legislation on the cost of prescription drugs and pharmacy benefit manager (PBM) reform in the 119thCongress. Cassidy noted that while the PBM Reform Act and legislation to bring lower-cost generic drugs to market more quickly did not pass last Congress, committee leadership will again focus on advancing these bills. 

January 20, 2025 

January 17, 2025

  • MCAA members monitoring issues around noncompete agreements should know that the Biden Federal Trade Commission (FTC) finalized a consent order requiring building services contractor Guardian Service Industries, Inc. (Guardian) to stop enforcing a no-hire agreement prohibited building owners and competing building service contractors from hiring Guardian’s maintenance technicians, custodians, and concierges. The final consent order requires Guardian to cease and desist from, directly or indirectly, enforcing a no-hire agreement or communicating to any prospective or current customer that a Guardian employee is subject to a no-hire agreement. It is unclear whether the FTC will continue its aggressive enforcement against non-compete agreements under newly appointed Trump FTC Chair Andrew Ferguson.

January 16, 2025

January 15, 2025

  • The Biden Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) released a proposed rule establishing new standards for carbon dioxide gas pipelines. The proposal addresses: (1) design, installation, operation, maintenance, and reporting requirements for carbon dioxide gas pipelines; (2) requirements for pipeline operators when converting existing pipelines to transport carbon dioxide; (3) requirements for all carbon dioxide pipeline operators to provide training to emergency responders and ensure carbon dioxide detection and other equipment is available for local first responders to use and efficiently respond during an emergency; (4) implementation of more robust requirements for communicating with the public during an emergency; and (5) a requirement of more detailed vapor dispersion analyses to better protect the public and the environment in the case of a pipeline failure. An advanced copy of the proposed rule is available here and it will be open for comment for 60 days following publication in the Federal Register.
  • In a unanimous 9-0 decision, the U.S. Supreme Court ruled in EMD Sales v. Carrera that the preponderance-of-the-evidence standard applies when an employer seeks to establish under the Fair Labor Standards Act (FLSA) that an employee is exempt from the minimum wage and overtime requirements of the FLSA. The decision reverses a Fourth Circuit Court of Appeals ruling that the FLSA requires employers to use a more onerous clear and convincing evidence standard to prevail on claims that an employee is exempt from FLSA minimum wage and overtime requirements.

January 14, 2025 

  • The Biden Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a safety advisory notice to request that consumers, retailers, shippers, and DOT-regulated entities ensure their cylinders containing hazardous gases are in compliance with the hazardous materials regulations. PHMSA is issuing this notice after finding several instances of empty cylinders being sold by major retailers to consumers, shippers, and heating, ventilation, and air conditioning (HVAC) personnel and service technicians that were not manufactured to a DOT specification or UN standard and lack certification markings. The safety advisory notice is available here.
  • The Biden Department of Homeland Security (DHS) announced the addition of 37 entities based in China to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List that requires U.S. Customs to bar their products from entry into the U.S. Tuesday’s announcement is the largest single expansion of the list to date. Eleven of the designated Chinese entities are in the energy sector, including companies engaged in: (1) the manufacturing of solar energy (e.g., silicon rods, wafers, and solar cell modules) and “green energy” technologies (e.g., energy power stations, batteries, and modules); (2) the development of coal, wind, photovoltaic, and oil and gas resources; and (3) critical minerals production and/or refining.
  • The Biden Energy Department (DOE) announced that it has released the 179D Portal, a tool to estimate potential federal tax deductions for installing eligible energy-efficient technologies in commercial buildings. The Inflation Reduction Act revised the 179D deduction to enable two different pathways for compliance: (1) the traditional pathway based on modeled savings beyond a reference building code; and (2) an alternative pathway for buildings to reduce their energy use based on utility data from previous levels. The 179D Portal provides tools for both the traditional compliance pathway and for the alternative compliance pathway for qualifying upgrades beginning in tax year 2023.

January 13, 2025

Around the Country

Northeast 

  • On January 16th, Rep. Nick LaLota (R-NY) led a bloc of five House Republicans in announcing plans to vote together and oppose any broader Trump tax package unless it contains significant changes to the current State and Local Tax (SALT) cap provisions beyond just an increase of the cap from $10,000 to $20,000. The other members of the bloc are Reps. Andrew Garbarino (R-NY), Mike Lawler (R-NY), and Tom Kean Jr. (R-NJ), and Young Kim (R-CA) Given the small GOP majority, this bloc could sink any party-line tax bill seeking to enact the Trump tax cuts. 

West

  • On January 17th, the Biden Energy Department (DOE) announced that it closed a $15 billion loan guarantee to Pacific Gas & Electric Company (PG&E), a combined natural gas and electric utility serving northern and central California, for the company’s Project Polaris to support a portfolio of projects to expand hydropower generation and battery storage, upgrade transmission capacity through reconductoring (i.e., replacing cables or wires on an electric circuit) and grid enhancing technologies, and enable virtual power plants throughout PG&E’s service area. The Biden DOE noted that PG&E will partner with the International Brotherhood of Electrical Workers (IBEW) Local 1245 to train and employ members of underserved groups interested in operational roles through its existing Power Pathway.

Northwest 

Midwest

Southeast

  • On January 15th, Florida Sen. Rick Scott (R) was elected chair of the Senate GOP Steering Committee, which serves as a Senate version of the House Freedom Caucus. The committee hosts weekly lunches and includes many of the most conservative Republicans in the Senate, though there is no formal roster.
  • On January 14th, the Biden General Services Administration (GSA) announced the award of a $210 million Energy Savings Performance Contract to CEG Solutions, LLC to implement energy and water upgrades at the following GSA facilities in the National Capital Region: (1) the Markey National Courts Building; (2) the Dolley Madison House; (3) the Cosmos Club Tayloe House; (4) the National Building Museum; (5) the Sidney Yates Federal Building; (6) the Lyndon B. Johnson Federal Building; (7) the Mary E. Switzer Federal Building; and (8) the U.S. Tax Court Building. The upgrades include deep energy retrofits through energy conservation measures, building electrification and the use of American-made low-embodied carbon materials. Other energy conservation measures to be implemented include upgrades to building envelopes, chillers, lighting and controls, building automation systems, domestic water systems, and replacement of transformers.
  • On January 13th, Sen. Jim Justice (R-WV) was officially sworn in, replacing Sen. Joe Manchin (I-WV) in the U.S. Senate.

Southwest

  • On January 21st, the Trump Administration announced that Oracle, OpenAI, and SoftBank have committed $500 billion as part of a private investment to build out artificial intelligence (AI) infrastructure in the U.S. The joint venture, called Stargate, will see each company initially commit $100 billion and will kick off with the construction of a data center in Texas.

Trump Administration II Webinar: A Virtual Discussion on Coming Tax, Regulatory & Trade/Tariff Policies

On February 6, 2025, at 2:00 p.m. EST, Daniel Bunn, President & CEO of the Tax Foundation, will provide an in-depth analysis of expected federal policy changes during the second Trump administration. The session will be moderated by Jim Gaffney and Chuck Daniel.

Daniel Bunn is President and CEO of the Tax Foundation. Daniel has been with the organization since 2018 and, prior to becoming President, successfully built its Center for Global Tax Policy, expanding the Tax Foundation’s reach and impact around the world. Prior to joining the Tax Foundation, Daniel worked in the United States Senate at the Joint Economic Committee as part of Senator Mike Lee’s (R-UT) Social Capital Project and on the policy staff for both Senator Lee and Senator Tim Scott (R-SC). In his time in the Senate, Daniel developed legislative initiatives on tax, trade, regulatory, and budget policy. He has a master’s degree in Economic Policy from Central European University in Budapest, Hungary, and a bachelor’s degree in Business Administration from North Greenville University in South Carolina. Daniel lives in Halethorpe, Maryland, with his wife and their three children.

Don’t miss this opportunity to gain valuable insights from a leading expert in the field.

MCAA Government Affairs Update for January 13, 2025: The Latest Developments Impacting Our Industry

As part of its ongoing commitment to protecting your livelihood and setting the stage for a bright future, MCAA has secured the services of Longbow Public Policy Group to advise our MCAA Government Affairs Committee (GAC). GAC Chair, Jim Gaffney will be passing along information relative to our industry on a regular basis.

On Monday, January 13, 2025 MCAA Lobbying Firm, Longbow Public Policy Group provided the following information:

Congress

Speaker Mike Johnson (R-LA) Re-Elected Speaker on First Ballot

On January 3rd, Speaker Mike Johnson (R-LA) was re-elected as House Speaker, securing enough support to remain Speaker on the first ballot. During the vote, Reps. Ralph Norman (R-SC) and Keith Self (R-TX) originally voted against Johnson, but ultimately flipped their votes to him before the vote closed after reportedly receiving phone calls from President-elect Trump. Rep. Thomas Massie (R-KY) was the only Republican House member to vote against Johnson. Following the vote, Johnson vowed to tackle the size of government, lead House Republicans in holding “the bureaucracy accountable” and move the United States “to a more sustainable fiscal trajectory.” Johnson also committed to set up a “working group comprised of independent experts” to work with President-elect Trump’s Department of Government Efficiency “to implement recommended government and spending reforms to protect the American taxpayer.”

Senate Finalizes Committee Assignments

On December 20th, Senate Majority Leader John Thune (R-SD) unveiled the Republican Conference’s committee assignments for the 119th Congress. Sen. Bill Cassidy (R-LA) will be the new chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee and will be joined by new Committee members Sens. Tim Scott (R-SC), Josh Hawley (R-MO), Jim Banks (R-IN), Mike Crapo (R-ID), and Marsha Blackburn (R-TN). Sen. Mike Crapo (R-ID) will take over as chair of the Senate Finance Committee and will be joined by new Committee member Sen. Roger Marshall (R-KS). Sen. Rand Paul (R-KY) will serve as the new chair of the Senate Homeland Security and Governmental Affairs Committee (HSGAC) and will be joined by new Committee members Sens. Joni Ernst (R-IA), Bernie Moreno (R-OH), and Tim Scott (R-SC). Thune also announced several new Chairs of committees that are important to MCAA, including: (1) Sen. Lindsey Graham as chair of the Senate Budget Committee; (2) Sen. Mike Lee (R-UT) as chair of the Senate Energy Committee; and (3) Sen. Shelley Moore Capito (R-WV) as Chair of the Senate Environment and Public Works Committee. Sen. Susan Collins (R-ME) will also serve as chair of the Senate Appropriations Committee and will be joined by new Committee members Sens. Markwayne Mullin (R-OK) and Mike Rounds (R-SD). 

On January 2nd, Senate Democratic Leader Chuck Schumer (D-NY) announced the new Senate Democratic Committee Assignments for the 119th Congress. Newly elected Sen. Andy Kim (D-NJ) will serve on the Senate HELP Committee, Senate Banking Committee, Senate Commerce Committee, and Senate HSGAC. Sen. Bernie Sanders (I-VT) will remain top Democrat on the Senate HELP Committee and, in addition to Senator Kim, will be joined by new Committee member Sen. Lisa Blunt Rochester (D-DE). Sen. Ron Wyden (D-OR) will also remain the top Democrat on the Senate Finance Committee and will be joined by new Committee members Sens. Raphael Warnock (D-GA) and Bernie Sanders (I-VT). Sen. Gary Peters (D-MI) will serve as Homeland Security & Governmental Affairs Committee (HSGAC) Ranking Member and be joined by new Committee members Sens. Andy Kim (D-NJ), Ruben Gallego (D-AZ), and Elissa Slotkin (D-MI). Schumer also announced changes in the Ranking Democrats for several Senate committees of interest to MCAA, including: (1) Sen. Jeff Merkley (D-OR) as Ranking Member on Senate Budget; (2) Sen. Martin Heinrich (D-NM) as Ranking Member on Senate Energy; and (3) Sen. Sheldon Whitehouse (D-RI) as Ranking Member on Senate Environment and Public Works. Sen. Patty Murray (D-WA) remains the top Democrat on the Senate Appropriations Committee and will be joined by new Committee members Sens. Kirsten Gillibrand (D-NY) and Jon Ossoff (D-GA).

Senate Begins Confirmation Hearings for Trump Cabinet Nominees This Week

The Senate is expected to hold several confirmation hearings for Trump nominees this week, including: (1) Trump Interior Secretary nominee former North Dakota Gov. Doug Burgum before the Senate Energy and Natural Resources Committee on January 14, 2025; (2) Trump Energy Secretary nominee Liberty Energy CEO Chris Wright before the Senate Energy and Natural Resources Committee on January 15, 2025; (3) Trump Transportation Secretary nominee former Rep. Sean Duffy (R-WI), before the Senate Commerce Committee on January 15, 2025; (4) Trump Homeland Security Secretary nominee South Dakota Gov. Kristi Noem (R) before the Senate Homeland Security and Government Affairs Committee (HSGAC) on January 15, 2025; (5) Trump Treasury Secretary nominee hedge fund manager Scott Bessent before the Senate Finance Committee on January 16, 2025; and (6) Trump Attorney General nominee former Florida Attorney General Pam Bondi before the Senate Judiciary Committee on January 15-16, 2025. 

House Democrats Fill Six Open Spots on House Energy and Commerce Committee

Last Tuesday, the House Democratic Steering and Policy Committee filled six open slots on the House Energy and Commerce Committee, which has jurisdiction over many issues of interest to MCAA. The Steering Committee selected: (1) Rep. Alexandria Ocasio-Cortez (D-NY); (2) Rep. Kevin Mullen (D-CA); (3) Rep. Troy Carter (D-LA); (4) Rep. Jennifer McClellan (D-VA); (5) Rep. Greg Landsman (D-OH); and (6) Rep. Jake Auchincloss (D-MA).

House Votes to Finalize Rules Package for the 119th Congress Making it Harder to Remove the Speaker

On January 3rdthe House adopted a new rules package for the 119th Congress by a vote of 215-209. It includes several notable changes to the rules of the House. Most notably, it raises the threshold to introduce a motion to vacate that forces a vote on removing the Speaker of the House so that instead of any single House member being able to force such a vote, such a motion will have to be introduced by a Republican and be joined by eight additional Republican co-sponsors.

The rules package also directs the House to consider a dozen to-be-introduced bills, including:

  • A bill reversing President Biden’s moratorium on hydraulic fracturing. 
  • A bill requiring the Secretary of Homeland Security to take into custody aliens who have been charged in the United States with theft and certain other crimes and empowering state Attorneys General to sue when they believe federal authorities are not properly enforcing or applying immigration law. (This bill, entitled the Laken Riley Actpassed the House last week by a vote of 264-159, with 48 Democrats joining all Republicans in support. The Senate last Thursday voted 84-9 to move to debate and potentially amend the bill ahead of a vote on final passage sometime this week.)

To appease budget hawks, the new rules also require the Director of the Congressional Budget Office, “to the extent practicable,” to prepare an estimate of whether a bill or joint resolution reported by a committee (other than the Committee on Appropriations), or amendment or conference report, would cause, relative to current law, a net increase in direct spending in excess of $2.5 billion in any of the four consecutive ten fiscal year periods beginning with the first fiscal year that is ten fiscal years after the current fiscal year. Moreover, a point of order may be raised to prevent consideration of any bill or joint resolution reported by a committee, or amendment thereto or conference report thereon, that would cause such a net increase in direct spending. Finally, the new rules also authorize subpoenas of Attorney General Merrick Garland and other Justice Department officials as part of House Republicans’ investigations into the Biden family’s finances. 

MCAA Issues and Interests 

Project Labor Agreements

ABC Leads 22 Organizationsxz∂√ƒ in Letter to President-elect Trump Urging Him to Rescind MCAA-Supported Executive Order on PLAs

Last Thursday, the Associated Builders and Contractors (ABC) led 22 organizations—including the U.S. Chamber of Commerce and the Construction Industry Round Table—in a letter to President-elect Donald Trump urging him to repeal President Biden’s MCAA-supported Executive Order and related implementation rules creating a presumption that project labor agreements (PLAs) will be used on large-scale federal construction projects valued at $35 million or more. Notably, the Associated General Contractors of America did not join ABC’s letter. The letter argues that “PLAs exacerbate the construction industry’s estimated skilled labor shortage of more than half a million workers by unfairly discouraging competition from quality non-union contractors and their employees, who comprise 89.3% of the private U.S. construction workforce.” The ABC-led letter calls on President-elect Trump to undo President Biden’s “rampant special-interest favoritism” by issuing a new executive order “that restricts government-mandated PLAs and to restore robust fair and open competition on federal and federally assisted construction projects.” MCAA previously filed comments on the rulemaking to implement President Biden’s PLA Executive Order and contributed to the Construction Employers of America’s (CEA) comments supporting the Executive Order in October 2022. The policy team is currently taking the lead on a group letter for the Construction Employers of America to President-elect Trump rebutting ABC’s letter and reminding him that he declined ABC’s pleas to attack PLAs during his first term and has used PLAs on some of the most recognizable properties he developed.  

Registered Apprenticeship

Biden DOL Withdraws Rulemaking on “National Apprenticeship System Enhancements”

On December 27th, the Department of Labor’s Employment and Training Administration (ETA) published the withdrawal of its rulemaking on “National Apprenticeship System Enhancements.” The withdrawal of this rulemaking is the culmination of a joint effort between the MCAA and the UA dating back to our organizations’ joint comments opposing key elements of the rule that were submitted to the ETA in March 2024. 

Independent Contractors and Misclassification of Workers 

IRS Guidance Regarding Worker Classification Issues Under Section 530 of the Revenue Act of 1978

As the MCAA policy team and its CEA allies continue engaging Congress and various federal agencies regarding the misclassification of construction workers as independent contractors, we wanted to be sure you were aware of several relevant developments last week at the Internal Revenue Service (IRS) below. 

Last Wednesday, the IRS issued Revenue Procedure 2025-10 modifying and superseding its Revenue Ruling and guidance previously issued regarding the application of Section 530 of the Revenue Act of 1978. Section 530 relieves employers from paying large employment tax assessments when the IRS determines that they misclassified workers as independent contractors instead of employees. Revenue Procedure 2025-10 discusses facts that may vitiate the “good faith” of an employer’s assertion under Section 530 that it deemed a worker to be a non-employee such that it can rely on Section 530. Such facts include: (1) claiming income tax deductions, or treating payments made to or on behalf of the workers as excludable from income under provisions of the tax code applicable only to employees; (2) claiming employer credits, such as credits for paid sick and/or family leave under laws like the Families First Coronavirus Response Act, the Employee Retention Credit, or any other tax credits specified in future guidance that are calculated with respect to wages or compensation paid to an employee; (3) treating the individual as an employee for purposes of collectively bargained agreements entered into by the taxpayer; (4) permitting participation of the individual in any qualified pension, profit sharing, or stock bonus plan; (5) permitting participation of the individual in any nonqualified deferred compensation plan if such participation is limited to employees of the taxpayer; and (6) providing state unemployment insurance or worker’s compensation insurance coverage for such individual if the requirements for obtaining such state unemployment or worker’s compensation insurance is that coverage is limited to individuals performing services for the taxpayer as common law employees. The Revenue Procedure goes on to clarify several other key elements of the Section 530 Safe Harbor that seem likely to curtail the ability of employers to use it.

Separately, the IRS also issued Revenue Ruling 2025-3 further clarifying the application of Section 530 of the Revenue Act of 1978 by illustrating the application of the Section 530 Safe Harbor to five common workplace compensation scenarios. The IRS also reminds the public that Section 530 relief does not extend to individual workers, who remain liable for their personal income taxes and the employee share of FICA taxes that may result from the reclassification of a worker.

On a related legislative note, last Wednesday, the IRS National Taxpayer Advocate Erin Collins also released her 2024 Annual Report to Congress, known as “The Purple Book.” Among the 69 legislative recommendations was a recommendation to amend current law to encourage and authorize independent contractors and service recipients to enter into voluntary withholding agreements (recommendation #63). Recognizing that some businesses may be reluctant to withhold due to concerns that the IRS may cite the existence of withholding agreements to challenge underlying worker classification arrangements, Collins suggested Congress address these fears by amending the law to give both businesses and independent contractors reassurance “that entering into a voluntary withholding agreement will not affect worker classification.” 

Decarbonization

Treasury Releases Final Rules for Clean Hydrogen Production Credit 

Last Friday, following a lobbying effort by the MCAA policy team over the last few months, the Treasury Department released final rules for the section 45V Clean Hydrogen Production Tax Credit established by the Inflation Reduction Act. In general terms, the final rules clarify how producers of hydrogen, including those using electricity from various sources, natural gas with carbon capture, renewable natural gas (RNG), and coal mine methane can determine eligibility for the credit. To qualify for the full credit, projects must also meet the MCAA-supported prevailing wage and apprenticeship standards. The rules enable pathways for hydrogen produced using both electricity and methane, providing investment certainty while ensuring that clean hydrogen production meets the law’s lifecycle emissions standards.

On a related note, last Tuesday, the Energy Department (DOE) announced that its Hydrogen and Fuel Cell Technologies Office (HFTO) is seeking applications for hydrogen and fuel cell project reviewer experts to review federal funding applications for clean hydrogen programs and to review the merit of ongoing projects. DOE seeks applicants with expertise in hydrogen production, storage, and delivery technologies, hydrogen and energy infrastructure, and integrated energy systems, and community engagement (e.g.,workforce, labor, and other community concerns), among other things. Those interested in applying to be an HFTO reviewer must email a copy of their most recent resume and a brief summary of their experience along with LinkedIn profile (if available) to H2Reviewer@ee.doe.gov.

Treasury Releases Final Rules for Clean Electricity Investment and Production Tax Credits 

Last Tuesday, the Treasury Department made public final rules for the Clean Electricity Investment (Section 48E) and Clean Electricity Production (Section 45Y) Credits that were also the subject of significant lobbying on the part of the MCAA policy team. Together, these Clean Electricity Credits provide clarity and certainty around what clean electricity zero-emissions technologies qualify for the credits—including wind, solar, hydropower, marine, and hydrokinetic, geothermal, nuclear, and certain waste energy recovery property. The final rules also provide guidance to clarify how combustion and gasification technologies can qualify in the future—including on how lifecycle analysis assessments will be conducted. The existing Production Tax Credit and Investment Tax Credit will be available to projects that began construction before 2025. Qualifying projects placed in service after December 31, 2024, will be eligible for the new Clean Electricity Credits. To receive the full value of the credits, taxpayers must meet standards for paying prevailing wages and employing registered apprentices. The final rules are scheduled for publication in the Federal Register and will take effect on January 15, 2025.

Treasury Releases Final Rules and Guidance for Clean Electricity Low-Income Communities Bonus Credit Program 

Last Wednesday, the Treasury Department and the Internal Revenue Service cleared final rules and a procedural guidance document for the Section 48E(h) Clean Electricity Low-Income Communities Bonus Credit Amount Program allocating bonuses to 1.8 gigawatts of clean electricity generation serving low-income communities from 2025 through at least 2032. The final rules expand the types of clean energy investments eligible for these tax credits beyond solar and wind technologies to other zero-emission technologies, including hydropower, geothermal, and nuclear. The final rule also clarifies eligibility requirements for qualified low-income residential building projects and provides a pathway for emerging clean energy businesses to receive priority in applying for the program. The final rule is scheduled to be published in the Federal Register on Monday, January 13, 2025.

DOE Releases FY25 Geothermal Research Funding 

On January 2nd, the Department of Energy’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs announced the release of the fiscal year 2025 Phase I, Release 2 Notice of Funding Opportunity (NOFO) for Geothermal Research. Under this NOFO, there will be approximately $65,000,000 available for qualified small businesses to carry out projects on two topics: one on geothermal heating and cooling and a second on enhanced geothermal systems. The geothermal heating topic areas are: (1) low-impact drilling systems for geothermal heat pumps (GHPs); (2) rapid site assessment for GHPs; and (3) geothermal heating and cooling for protected agriculture, like greenhouses and other controlled farming environments. The enhanced geothermal topic area focuses on improving elastomeric materials used in harsh downhole geothermal environments. Applications should focus on improving elastomeric materials specifically for use in geothermal wells, including for use in seals, o-rings, zonal isolation devices, pumps, valves, motors, and wellbore monitoring tools. Letters of intent are due by January 14, 2025 and full applications are due by February 26, 2025. Full applications can be submitted to Grants.gov by entering Catalog of Federal Domestic Assistance No. 81.049. 

Other Interesting Things Since Our Last Report 

January 9, 2025

  • The Energy Department announced more than $136 million for 66 projects to support research and development of technologies to reduce energy demand and improve productivity, including: (1) projects that improve energy and material efficiency, utilize advanced energy sources, and develop technologies which utilize sustainable chemical feedstocks; (2) projects that develop technologies to address industrial emissions for cement and concrete, asphalt, and glass; and (4) developments in energy-intensive pulp, paper, and wood products manufacturing through dewatering and drying technologies and fiber preparation, pulping, and chemical recovery processes. A full list of projects is available here.
  • BlackRock, the world’s biggest asset manager, said it will leave the Net Zero Asset Managers Initiative, a coalition of top corporations that pledged to reach zero-carbon emissions by 2050. BlackRock’s departure followed a week after Morgan Stanley, Citigroup, and Bank of America withdrew from an aggressive climate change coalition focused on decarbonizing industries these banks serve. That followed withdrawals over the past month by Wells Fargo and Goldman Sachs from the United Nations-backed coalition, known as the Net-Zero Banking Alliance. JPMorgan Chase, the largest bank in the nation by assets and the only major U.S. bank left in the coalition, is also considering withdrawing from it. Members of the coalition, launched in 2021, had vowed to align “lending, investment and capital markets activities with net-zero greenhouse gas emissions by 2050.” The recent exodus from these decarbonization coalitions reflects a broad pullback by companies ahead of the second Trump administration from environmental, social and corporate-governance initiatives that Trump has strongly criticized.

January 8, 2025

January 7, 2025

  • The Health and Human Services Department announced fiscal year 2025 allocation decisions for $700 million in funding from the President’s Bipartisan Infrastructure Law to support 67 construction projects to develop Tribal water infrastructure, including drinking water sources, sewage systems, and effective solid waste disposal facilities.
  • The Federal Trade Commission (FTC) announced that three oil companies—XCL Resource Holdings, Verdun Oil Company II, and EP Energy LLC—agreed to pay a record $5.6 million penalty to settle allegations that they illegally coordinated before a merger between them was complete in 2021 and 2022. The FTC says XCL halted EP’s oil development activities “at a time when the United States was experiencing significant supply shortages and spiking crude oil prices” due to the COVID-19 pandemic.

Janaury 6, 2025

  • The Energy Department (DOE) announced $45 million in funding for six projects in Alaska, Illinois, Texas, Utah, Virginia, and Wyoming to create regional consortia to accelerate the development of critical mineral and materials supply chains, including for novel nonfuel carbon-based products from secondary and unconventional feedstocks (e.g., coal and coal by-products, effluent waters from oil and gas development, acid mine drainage) for American manufacturing and production of technologies essential to clean energy.

January 2, 2025

  • Beginning on January 2nd, an estimated 19 million Medicare beneficiaries will see their out of pocket spending under Medicare Part D prescription drug plans capped at $2,000 for 2025 after the provision was included in the Inflation Reduction Act in 2022. This annual cap will be indexed to the rate of inflation going forward every year. President Biden issued a statement marking implementation of the cap, calling it a “game changer for the American people” and will help Americans “afford the quality health care they need.”  MCAA is working to educate policy makers about the pressure this price cap is placing on self-insured plans and how it is shifting the costs of drugs onto plans rather than lowering the overall cost of drugs.

December 30, 2024 

  • The Department of Labor (DOL) announced the award of $65 million to 18 colleges in Alabama, California, Colorado, Michigan, Missouri, Montana, Nebraska, New Jersey, Ohio, Oregon, Texas, Virginia, Washington, and West Virginia to support programs at community colleges that scale “affordable, high-quality” workforce training in “critical industry sectors” such as clean energy, advanced manufacturing, semiconductors, and biotechnology. Administered by DOL’s Employment and Training Administration, the fifth round of Strengthening Community Colleges Training Grants are intended to enhance career pathway programs and support equitable outcomes for marginalized and underrepresented populations. The full list of grant awards is available here.

Around the Country 

Northeast 

West

  • On January 8th, the Interior Department (DOI) announced $514 million in funding from the President’s Bipartisan Infrastructure Law for five water storage and conveyance projects. Projects funded under this announcement include: (1) $250 million for the Arkansas Valley Conduit Project to fund the installation of nearly 10 miles of pipeline; (2) $129 million for the Sites Reservoir Project to develop up to 1.5 million acre-feet of new water storage on the Sacramento River system located near Maxwell, California; (3) $125 million for the B.F. Sisk Dam Raise and Reservoir Expansion Project in California to enhance off-stream storage capabilities; (4) $7 million for the Anderson Ranch Dam Raise Project to raise the Anderson Ranch Dam in Idaho by 6 feet to add 29,000 acre-feet of storage; and (5) $3 million for the Cle Elum Pool Raise Project in Washington State to continue to increase the reservoir’s capacity an additional 14,600 acre-feet to be managed for instream flows for fish.
  • On December 31st, the Environmental Protection Agency (EPA) announced the issuance of four Underground Injection Control Class VI well permits to Carbon TerraVault JV Storage Company Sub 1, LLC (CTV), a subsidiary of California Resources Corporation. The four Class VI UIC permits are for the first permitted Class VI injection wells in California and represent the first such permits issued by EPA’s Pacific Southwest Region. Class VI UIC wells are used to inject carbon dioxide into deep rock formations for permanent underground storage. This technology, called carbon capture and underground storage or geologic sequestration, can be used to reduce carbon dioxide emissions to the atmosphere and mitigate climate change. The permits authorize CTV to construct four deep injection wells in the Elk Hills Oil Field, approximately 20 miles west of Bakersfield, California. The wells will be constructed to depths of more than a mile below surface level, into the Monterey Formation. CTV plans to inject about 1.5 million metric tons of carbon dioxide per year for 26 years, totaling almost 38 million metric tons of carbon dioxide removed andstored.

Northwest 

  • On January 2nd, the Labor Department announced the award of $627,124 to the Washington State Employment Security Department to continue providing disaster-relief jobs and employment and training services for people in southwest Washington communities affected significantly by the health and economic effects of widespread opioid use, addiction, and overdose.

Midwest 

Southeast

Southwest

An Election for the Ages: An Exclusive Election Debrief Webinar for MCAA Members

Regardless of where one falls on the political spectrum, the fascinating 2024 presidential and congressional elections will continue to be studied by historians and political scientists a century from today. Interesting fact: this was the first time since 1892 that a former president who previously lost a reelection bid was later elected president again.

With the results now in, MCAA was excited to discuss this election with one of the nation’s premier thought leaders and political data experts, Karlyn Bowman. In this previously recorded webinar, Karlyn shares with MCAA members her unique perspective on the events leading up to the election, the data tracked on Election Day, and where the nation may be headed politically.

Karlyn Bowman, Senior Fellow Emeritus at the American Enterprise Institute (AEI), helped launch AEI’s work on public opinion in the late 1970s. In 1982, she started “Election Watch,” the longest-running political analysis program in Washington. She continues to compile and analyze American public opinion using available polling data on subjects including the economy, the presidency, the environment and global warming, and women’s attitudes.

This webinar was recorded Friday, November 22, 2024 and was moderated by Jim Gaffney, Chair of MCAA’s Government Affairs Committee (GAC) and CEO of Goshen Mechanical in West Chester, Pa., alongside Chuck Daniel, MCAA’s Senior Advisor. 

2025 CEA National Issues Conference

MCAA, SMACNA and TAUC invite you to participate in the National Issues Conference focusing on key regulatory and legislative issues affecting the union construction industry today. The conference will host both regulators and representatives from Congress for their expertise and insight on a variety of topics. Don’t miss this opportunity to get the latest information that impacts your business from the nation’s capital!

Tentative Schedule:

Monday, May 5
5:00 p.m. Evening Reception

Tuesday, May 6
7:00 a.m. Breakfast
8:00 a.m. Program & Lunch
1:00 p.m. Hill Appointments

Wednesday, May 7
7:00 a.m. Breakfast
8:00 a.m. Program

MCAA CEO Tim Brink Represents the Construction Industry at White House Event

On Tuesday, October 8th, 2024, MCAA CEO Tim Brink joined the White House Domestic Policy Council (DPC) and White House Office of National Drug Control Policy (ONDCP) for the first White House Challenge to Save Lives from Overdose Event. The event celebrated nearly 250 commitments from stakeholders across all sectors to help expand access to lifesaving opioid overdose reversal medication and reduce preventable drug overdose deaths.

“With education and awareness, we can empower people to take action and save a life.”
– Timothy J. Brink, MCAA CEO

Tim was introduced by Rahul Gupta, Director of the ONDCP. In his role representing the construction industry, Tim highlighted the importance of this crucial initiative and how important normalizing this issue is. “Reaching other trades facing substance use and overdose requires a collaborative and inclusive approach. We haven’t completely figured this out, and we all need to learn from each other. Through our Alliance with NECA, SMACNA, and TAUC, we have top-down support for this challenge, but it also requires equal support from the bottom up and everywhere in between,” Tim said.

He also highlighted MCAA’s approach to recognizing drug abuse, misuse, and addiction’s relationship with a person’s mental health, and emphasized MCAA’s award-winning mental health awareness and suicide prevention video, and our new joint Construction Mental Health Summit with SMACNA and TAUC at the 2025 Safety and Health Conference.

MCAA’s leadership in construction safety and health started 25 years ago under the guidance of longtime industry expert Pete Chaney. Over the last 25 years, MCAA has been able to attribute a decrease of about a half a million injuries, a savings to contractors of tens of billions of dollars, to these efforts, which included creating and distributing over 700 safety and health resources in multiple languages.

“The crisis often begins with the first major injury, leading to the initial prescription for pain relief. It continues on the jobsite due to the pressures of the current work environment, such as the necessity for speed to market and the fact that if you don’t work, you don’t get paid. This all contributes to the need to work through pain and the continued use of opioids,” said Brink.

MCAA supports the White House’s position encouraging employers to:

  • Train employees on how and when to use an opioid overdose reversal medications.
  • Keep opioid reversal medications in their first aid kits, both on jobsites and in offices.
  • Provide opioid overdose reversal medications to trained employees.

Learn More

If you have questions about this or other safety-related topics, please contact Raffi Elchemmas, MCAA’s Executive Director of Safety, Health, and Risk Management.

September 19, 2024: IRS Proposed Rule and New IRS Guidance Document on the Alternative Fuel Vehicle Refueling Property Credit

Yesterday, The Department of Treasury (Treasury) and The Internal Revenue Service (IRS) released pre-publication text of a proposed rule (NPRM) to provide guidance for the Alternative Fuel Vehicle Refueling Property Credit as amended by the Inflation Reduction Act for “qualified alternative fuel vehicle refueling property.” The NPRM will publish in today’s Federal Register, subject to a 60-day comment period.

June 25, 2024: The Treasury Department & Internal Revenue Service Publish Final Rule Regarding Prevailing Wage & Apprenticeship Requirements

The Treasury Department and the Internal Revenue Service (IRS) have published final regulations regarding the prevailing wage and registered apprenticeship (PWA) requirements that taxpayers must satisfy to receive five times the base tax credit or deduction amounts with respect to certain clean energy facilities, properties, projects, technologies, or equipment under the Internal Revenue Code (the Code), as amended by the Inflation Reduction Act of 2022 (IRA). The overview below seeks to explain the portions of this lengthy final rule that we felt would be of most interest to MCAA. There are aspects of the rule that are not addressed in this document, and the MCAA public policy team is happy to answer questions about aspects of these lengthy regulations not addressed in this overview.

Please reach out to MCAA’s public policy team if you have any questions.

FTC Releases Noncompete Clause Compliance Resources

A Federal Trade Commission (FTC) rule banning non-compete clauses is set to go into effect on September 4, 2024. Under the rule, non-competes are broadly defined as any arrangement that prohibits, penalizes, or functionally prevents a worker from getting a new job or starting a business after leaving their employment, even if the agreements are not labelled as non-competes. In short, the rule bans employers from entering into non-competes with workers covered by the rule. It also imposes an obligation on businesses to notify former employees and contractors with whom they previously entered into non-competes, that these agreements are now unenforceable. There is an exception for agreements with senior executives related to the bona fide sale of a business and for situations where a dispute arose about whether the non-compete was breached before the effective date of this rule.

To help businesses understand this rule and how to comply with it, the FTC has prepared a business and small entity compliance guide. The guide contains step-by-step instructions for complying with the rule, along with FAQs further explaining the rule. Additionally, the FTC recorded a compliance webinar for businesses on May 14th. The video and transcript are available here.

You can read more about the final rule on the FTC website and in this fact sheet. The text of the rule and model notices regarding compliance with the rule’s notice requirement are available on the FTC website. You can also contact the FTC at noncompete@ftc.gov if you have further questions.

MCAA Lobbying Firm, Longbow Public Policy Group prepared a summary of the FTC’s final rule following its publication. The summary offers further guidance and answers questions about industry-specific matters, such as the application of this rule to training repayment agreements and the jurisdictional limits that prevent application of this rule to bona fide non-profit entities, such as 501(c)(3) training funds.

Expand Your Regulatory & Legislative Knowledge at the National Issues Conference

May 6–8, 2024 | Washington, DC

MCAA invites you to participate in the 2024 National Issues Conference for a deep-dive into the key regulatory and legislative issues affecting the union construction industry. Along with our partners in the Construction Employers of America (CEA), we will host regulators and representatives from Congress for their expertise and insights on a variety of topics. Don’t miss this opportunity to get the latest information that impacts your business from the nation’s capital! Register today!

This event is put on by the members of the CEA, a coalition of seven premier national construction specialty contracting associations, working together to raise awareness among policymakers, opinion leaders, and the general public about the value of high-quality American construction.

MCAA is a charter member of the CEA. The other charter members are:

  • International Council of Employers of Bricklayers and Allied Craftworkers
  • FCA International
  • National Electrical Contractors Association
  • Sheet Metal & Air Conditioning Contractors’ National Association
  • Signatory Wall and Ceiling Contractors Alliance
  • The Association of Union Constructors.

Join MCAA and our CEA partners May 6–8, 2024 at The Royal Sonesta Washington DC Capitol Hill for the event and be sure to take advantage of the opportunity for Hill appointments to ensure your voice is heard.

Expand Your Regulatory & Legislative Knowledge at the National Issues Conference

May 6–8, 2024 | Washington, DC

MCAA invites you to participate in the 2024 National Issues Conference for a deep-dive into the key regulatory and legislative issues affecting the union construction industry. Along with our partners in the Construction Employers of America (CEA), we will host regulators and representatives from Congress for their expertise and insights on a variety of topics. Don’t miss this opportunity to get the latest information that impacts your business from the nation’s capital! Register today!

This event is put on by the members of the CEA, a coalition of seven premier national construction specialty contracting associations, working together to raise awareness among policymakers, opinion leaders, and the general public about the value of high-quality American construction.

MCAA is a charter member of the CEA. The other charter members are:

  • International Council of Employers of Bricklayers and Allied Craftworkers
  • FCA International
  • National Electrical Contractors Association
  • Sheet Metal & Air Conditioning Contractors’ National Association
  • Signatory Wall and Ceiling Contractors Alliance
  • The Association of Union Constructors.

Join MCAA and our CEA partners May 6–8, 2024 at The Royal Sonesta Washington DC Capitol Hill for the event and be sure to take advantage of the opportunity for Hill appointments to ensure your voice is heard.

Expand Your Regulatory & Legislative Knowledge at the National Issues Conference

May 6–8, 2024 | Washington, DC

MCAA invites you to participate in the 2024 National Issues Conference for a deep-dive into the key regulatory and legislative issues affecting the union construction industry. Along with our partners in the Construction Employers of America (CEA), we will host regulators and representatives from Congress for their expertise and insights on a variety of topics. Don’t miss this opportunity to get the latest information that impacts your business from the nation’s capital! Early-bird registration discounts end March 1. Register today!

This event is put on by the members of the CEA, a coalition of seven premier national construction specialty contracting associations, working together to raise awareness among policymakers, opinion leaders, and the general public about the value of high-quality American construction.

MCAA is a charter member of the CEA. The other charter members are:

  • International Council of Employers of Bricklayers and Allied Craftworkers
  • FCA International
  • National Electrical Contractors Association
  • Sheet Metal & Air Conditioning Contractors’ National Association
  • Signatory Wall and Ceiling Contractors Alliance
  • The Association of Union Constructors.

Join MCAA and our CEA partners May 6–8, 2024 at The Royal Sonesta Washington DC Capitol Hill for the event and be sure to take advantage of the opportunity for Hill appointments to ensure your voice is heard.

CEA National Issues Conference Will Focus on Key Regulatory & Legislative Issues

The Construction Employers of America (CEA) invites you to participate in the 2024 National Issues Conference, which will take place May 6–8, 2024, at the Royal Sonesta Washington, DC Capitol Hill. This event will focus on key regulatory and legislative issues affecting the union construction industry today. As with previous in-person conferences, the CEA will host both regulators and representatives from Congress for their expertise and insights on a variety of topics. Don’t miss this opportunity to get the latest information that impacts your business from the nation’s capital! Early-bird registration is now available!

GSA Administrator Robin Carnahan Joins Speaker Lineup for the 2023 CEA National Issues Conference

Learn about federal procurement policy directly from U.S. General Services Administration (GSA) Administrator Robin Carnahan during the 2023 CEA National Issues Conference. If you want to stay informed and involved in the legislative and regulatory policy issues that impact your business, you can’t afford to miss this conference! Join us May 2-4 in Washington, D.C. to hear about U.S. Department of Labor regulations from Jessica Looman, Wage and Hour Division Principal Deputy Administrator. Get the latest on federal construction procurement rules from Northern Virginia Congressman Gerry Connolly. And learn about new pension and healthcare plan regulations from Mariah Becker of the NCCMP. Only a few spots remain. Register today!

Learn from the Experts on Key Legislative & Regulatory Issues During the 2023 CEA National Issues Conference

Time is running out to register for the Construction Employers of America (CEA) National Issues Conference. If you want to stay informed and involved in the legislative and regulatory policy issues that impact your business, you can’t afford to miss it! Join us May 2-4 in Washington, D.C. to hear about U.S. Department of Labor regulations from Jessica Looman, Wage and Hour Division Principal Deputy Administrator. Get the latest on federal construction procurement rules from Northern Virginia Congressman Gerry Connolly. And learn about new pension and healthcare plan regulations from Mariah Becker of the NCCMP. Register today!

2023 CEA National Issues Conference

The Construction Employers of America (CEA) – comprised for this conference of MCAA, SMACNA and TAUC – will be hosting this year’s CEA National Issues Conference, covering legislative and regulatory policy issues. The conference will host both regulators and representatives from Congress for their expertise and insight on a variety of topics. Don’t miss this opportunity to get the latest information that impacts your business from the nation’s capital!

Withum Explains Why PPP Loan Forgiveness May Not Be Tax-Free

National accounting firm Withum shares information to help you understand the tax implications of the recent Internal Revenue Service (IRS) ruling addressing the proper treatment of improperly forgiven paycheck protection program (PPP) loans. The IRS ruled that the PPP loan forgiveness amount is not tax-free, even if the Small Business Administration (SBA) and the lender granted the borrower full loan forgiveness, if the taxpayer did not satisfy the factual requirements for loan forgiveness.

Withum Article Explains the Inflation Reduction Act’s Impact on Tax Audits

National accounting firm Withum shares information to help you understand the potential impacts of the Inflation Reduction Act, which was signed into law on August 16, 2022. They note that the act, which includes $80 billion of increased funding for the Internal Revenue Service (IRS), will meaningfully increase IRS audit rates, but the impact won’t happen overnight.

Vincent Sarubbi Jr. Will Join the MCAA Staff

MCAA extends a warm welcome to Vincent Sarubbi Jr., who will be joining the staff starting September 6, 2022. He will be MCAA’s new Director, Government Relations, learning the ropes from John McNerney. Vince comes to the MCAA after a decade of service on Capitol Hill advising Members of Congress on a variety of issues directly related to MCAA members’ business interests, including healthcare, education/apprenticeship, labor, and pension issues. MCAA is pleased to welcome Vince to the staff.

Most recently, Vince served as an advisor to Senator Sherrod Brown (OH) covering multiemployer pensions and transportation/infrastructure policies, among others. During his time in Senator Brown’s office Vince helped usher through the passage of the Butch Lewis Act (BLA), which provided $100 billion in special financial assistance (SFA) to underfunded multiemployer pension plans. These funds will help restore fiscal stability to seriously underfunded plans and relieve the pressure of withdrawal liability on contractors in those plans. The SFA program also helps alleviate the threat of large Pension Benefit Guaranty Corporation (PBGC) premium increases for all multiemployer plans that MCAA member firms sponsor jointly with the UA.

After the BLA passed, Vince worked closely with the Biden Administration on the PBGC regulations to implement the SFA program, to ensure that the regulations reflected the operational realities of the contractors and employees who depend on those plans. This includes preventing mass withdrawals as a result of the infusion of SFA assets into troubled plans, dealing with issues of fiduciary liability for Trustees, and ensuring that PBGC’s interest rate assumptions aligned with plans’ predicted investment returns.

In addition to leading the Senator’s work on multiemployer pensions, Vince oversaw a diverse portfolio of issues, working on the passage of the Infrastructure Investment and Jobs Act that created significant opportunities in MCAA member firm markets, and pressing for innovative legislative proposals to combat the rampant worker misclassification by businesses seeking to illegally undercut MCAA member firms. Staunching the rampant abuse of worker misclassification also is a top legislative and regulatory priority for MCAA.

Before his time in Senator Brown’s office, Vince worked on staff for Congressman Donald Norcross (NJ-01), advising him on healthcare, labor, education and pension issues, among others. During his time with Congressman Norcross, Vince helped launch the House of Representatives’ first Building Trades Caucus, focused on spotlighting issues facing union-signatory employers and union-represented employees in the building trades industries. He also worked closely with Building Trades unions and their signatory contractors to advance shared priorities including: maintaining and strengthening Davis Bacon prevailing wage protections on government funded construction projects, the protection and promotion of the Federal registered apprenticeship system, and the repeal of the “Cadillac tax” on multiemployer healthcare plan benefits.

In 2018, Vince served as Congressman Norcross’ lead staffer on the Joint Select Committee on Solvency of Multiemployer Pension Plans, advising the Congressman on his work on the Committee and drafting the GROW Act, a bill that would have created a new type of composite variable defined benefit plan allowing multiemployer plans to limit contractors’ funding risks while still protecting employees’ earned benefits. Reforming the multiemployer pension plan design, including authorizing new composite defined benefit plans, remains a high priority on MCAA’s legislative agenda. During his time with Congressman Norcross, Vince also was responsible for advising the Congressman on his work as a member of the House Budget Committee and later the Committee on Education and Labor.

Vince began his career on Capitol Hill working for former Congressman Rob Andrews (NJ-01), who had served as Chairman of the Subcommittee on Health, Employment, Labor and Pensions. In that role, Vince worked on the successful passage of the bipartisan Multiemployer Pension Reform Act of 2014 and the implementation of the Affordable Care Act.

Vince received his Bachelor of Arts in International Affairs and Economics from The George Washington University and his Juris Doctor, cum laude, from The Catholic University of America’s Columbus School of Law. Hailing originally from Southern New Jersey, Vince lives in Washington D.C. and enjoys playing tennis and music in his free time.