As merit shop contractors, there are certain legislative issues that directly impact the business of IEC members. Labor, energy, tax, jobs, and workforce development are all major political issues taking place at the national level that can greatly affect the electrical and systems contracting industry.
The Protecting the Right to Organize (PRO) Act, introduced in 2019 by Senators Patty Murray and Representative Bobby Scott, aims to overhaul federal labor law to favor labor unions over employers and employees. The bill has passed the House twice but is still pending in the Senate. It has strong support from Senate Democrats, with Majority Leader Chuck Schumer signaling willingness to advance it if it gains enough backing.
The PRO Act includes provisions that would:
The bill seeks to reinstate labor policies rejected or abandoned in previous administrations and has gained more traction with the Biden administration’s support. President Biden has endorsed the PRO Act and proposed further measures to penalize corporate interference in union organizing.
Overall, IEC opposes various labor regulations and policies that it believes increase costs, limit competition, and infringe on employers’ rights.
IEC is a strong advocate for expanding registered apprenticeship opportunities to enhance skills and practical experience in the electrical trade. In June 2017, President Trump signed an Executive Order aimed at expanding apprenticeships, leading to the creation of a Task Force on Apprenticeship Expansion. This Task Force, which included merit shop representation, recommended the establishment of Industry Recognized Apprenticeship Programs (IRAPs) to promote apprenticeships in sectors with insufficient programs. However, initial guidance and proposed rules have excluded construction from participating in IRAPs.
In addition to supporting apprenticeship expansion, IEC is focused on reauthorizing the Carl D. Perkins Career and Technical Education Act, which funds career and technical education programs. The Perkins Act, renewed in 2018, is crucial for preparing students for skilled jobs. IEC supports increasing funding for this program to better address workforce demands.
Overall, IEC advocates for more inclusive apprenticeship programs and greater funding for career and technical education to meet the needs of the skilled workforce.
Tax Reform Overview:
In late 2017, Congress passed a significant tax reform bill impacting small businesses and pass-through entities:
Death Tax:
Energy Policy:
Tenant Star:
Commercial Building Tax Deduction (179D):
Solar Investment Tax Credit (ITC):
Overall, IEC supports continued efforts to enhance tax benefits and incentives related to energy efficiency and renewable energy.
In the 113th Congress, several bills aimed to improve procurement processes for construction services:
These proposals, which were reintroduced in the 114th Congress as H.R. 838, aim to save taxpayer money and improve competition for federal construction contracts. IEC supports these measures for more efficient and cost-effective procurement.
In the 116th Congress, two bills were introduced—Corporate Transparency Act of 2019 (H.R. 2513) and ILLICIT CASH Act (S. 2563)—requiring small businesses with 20 or fewer employees to report detailed information about their beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The bills mandate annual updates and grant broad access to this information by various law enforcement agencies without a subpoena.
These proposals increase the risk of misuse of private data and impose severe penalties for non-compliance, including up to $10,000 in fines or three years in prison. The National Federation of Independent Business estimates the cost of compliance for small businesses at $5.7 billion over ten years, with a significant time burden. IEC opposes these proposals, arguing they unfairly burden small businesses.
In the 116th Congress, two bills were introduced—Corporate Transparency Act of 2019 (H.R. 2513) and ILLICIT CASH Act (S. 2563)—requiring small businesses with 20 or fewer employees to report detailed information about their beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The bills mandate annual updates and grant broad access to this information by various law enforcement agencies without a subpoena.
These proposals increase the risk of misuse of private data and impose severe penalties for non-compliance, including up to $10,000 in fines or three years in prison. The National Federation of Independent Business estimates the cost of compliance for small businesses at $5.7 billion over ten years, with a significant time burden. IEC opposes these proposals, arguing they unfairly burden small businesses.
Metal theft has surged in the U.S., rising by 36% since 2010, with copper wiring being a major target. This issue affects many IEC members, who have experienced theft at business locations or construction sites.
To address this, the Metal Theft Prevention Act (S. 394) was introduced in the 113th Congress. The bill aims to enhance federal protections by criminalizing metal theft from critical infrastructure, requiring recyclers to keep purchase records, and banning cash payments over $100 for resold metal. It also ensures that state and local laws remain in effect. The bill did not advance in the 114th Congress.
IEC supports measures that protect businesses and infrastructure from metal theft.
IEC contractor members value the competitive wages and benefits they offer and have long advocated for health care reforms to reduce costs, increase efficiency, and ease the burden on both employers and employees. They support market-driven reforms that ensure affordability, expand consumer choice, and make it easier for small businesses to provide quality health care.
IEC opposed the Patient Protection and Affordable Care Act (PPACA) due to its costly mandates and uncertainty for small businesses. While complete repeal of PPACA seems unlikely, IEC backs amendments to reduce its negative impacts. In 2017, President Trump signed an Executive Order for association health plans, with final rules released in 2018, though these faced legal challenges. A 2019 court ruling invalidated the rules, and an appeal is ongoing.
The PPACA also included a health insurance tax (HIT) expected to raise premiums for small businesses. Although this tax was temporarily lifted and permanently repealed in December 2019 (effective January 2021), it was still in effect for 2020.
IEC supports Association Health Plans and medical liability reform to further improve health care affordability and accessibility.
IEC supports expanding foreign worker visa programs to address labor shortages and aid economic recovery but is concerned about the Senate’s “Border Security, Economic Opportunity, and Immigration Modernization Act” (S. 744) from the 113th Congress. The bill’s cap of 15,000 annual “W visas” for construction workers, out of a total 200,000, is seen as inadequate and likely to cause labor shortages in the construction industry. This restriction could lead to project delays and higher costs, impacting small contractors and consumers.
On employee verification, IEC emphasizes the importance of vetting employees to ensure legal work status and supports a mandatory verification system with a “knowing” intent standard for employer liability. The proposed S. 744 included this standard, preempting state regulations, and the “Legal Workforce Act” (H.R. 1772) also proposed a robust E-verify system with provisions for small businesses. IEC supports the verification standards outlined in S. 744.
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