On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Uncategorized on Dec 27, 2017.
Monthly Archives: December 2017
On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Bonding and Surety on Dec 19, 2017.
The final version of the federal tax bill, which is expected to be passed by Congress this week, maintains for the most part the current tax status of private activity bonds which are important to the construction industry. Private activity bonds provide tax credit incentives for investors for certain targeted developments such as affordable housing, economically distressed commercial development zones, historic building renovation, and infrastructure. Earlier versions of the tax bill would have eliminated or sharply reduced funding for tax credit financing for affordable housing, which could have resulted in a reduction in building of up to 900,000 units over 10 years, according to some estimates. The current version restores funding for this tax credit financing, as well as funding for New Market Tax Credits, which allow private investors to secure tax credits for investment into economically disadvantaged areas. However, because the tax bill cuts the federal corporate tax rate from 35% to 21%, there is some sentiment that the lower corporate tax rate could make tax credit investment less valuable and therefore dampen the volume of tax credit investment available from private industry. Some industry experts have estimated that this factor could result in a drop in production of affordable housing by as much as 15% annually.
On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Employment Law on Dec 6, 2017.
A new California law requires prime contractors on private construction projects to be financially responsible for any wages, fringe benefits and union contributions left unpaid by subcontractors and their sub-subcontractors. The prime contractor’s financial responsibility under this new law, however, does not extend to any penalties or liquidated damages resulting from a subcontractor’s failure to pay wages. This law governs all private construction contracts entered into beginning January 1, 2018. As a result of this new law, prime contractors on California private construction projects will need to closely monitor their subcontractors’ payroll practices and require the submission of payroll documentation similar to that required under the Davis-Bacon Act. The new law allows prime contractors to withhold payment from any subcontractor that does not provide the required payroll records. Could we see passage of a similar law in Pennsylvania and New Jersey – two states having strong construction labor unions?