AIA Hails Repeal of 3 Percent Withholding Statute

Washington, D.C. The American Institute of Architects hailed the House of Representative’s passage of Senate legislation that repeals the 3 percent withholding statute, which requires government agencies to collect a 3 percent fee on payments made to individual contractors, including architects.

The legislation now heads to President Obama for signature, and the President has said he would sign the repeal into law.

House passage of the Senate bill also means passage of tax incentives for businesses who hire unemployed veterans.

Abolishing the 3 percent withholding mandate on government agencies has been one of many AIA legislative priorities. Since 2007, more than 5,500 AIA members have sent nearly 20,000 messages to Capitol Hill in support of repealing the 3 percent withholding statute.

“This vote is a signal to the design and construction sector, which has been hit hard in this economy and which is working hard at getting back on its feet,” said AIA President Clark Manus, FAIA. “One of the best ways to unleash the job-creating potential of our sector is to remove needless regulations and fees, wherever possible.”

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