Masonry Magazine January 2001 Page. 14
SWEA: The Targeted Tax Incentive
Randall G. Pence, Esq.
Capitol Hill Advocates, Inc.
At press time, the 106th Congress is coming to a close with a mini lame-duck session. The 106th has seen an explosion of interest in the Skilled Workforce Enhancement Act, also known as "SWEA".
SWEA is a bill that would allow small businesses a substantial targeted tax incentive to train new workers in certain highly skilled trades.
I requested that mason contractors who train new masons be eligible for this benefit and offered language on Capitol Hill to make this happen. SWEA now specifically identifies "the trade of masonry" as one of the targeted trades.
Less than two years ago, the prospects for SWEA were bleak. In April of 1998 when the bill first came on my radar screen, the bill had only a handful of cosponsors, no cost estimate, little factual record to support its passage, no congressional hearings and many unanswered questions in the bill language.
In a year of focused work on the Hill, we have turned the situation around completely. SWEA is now seen at the highest levels of government as a proposal to be taken very seriously.
HERE IS WHAT WE BRING TO THE TABLE TODAY
We have a robust coalition of strong industry groups backing the bill. The number of cosponsors has skyrocketed to eighty-nine and reflects a healthy bipartisanship. Many of these cosponsors have senior positions on key committees. We have secured a favorable cost estimate from the congressional Joint Committee on Taxation. We had a very successful hearing before the House Committee on Small Business, during which I testified in favor of the bill in general and for the trade of masonry, specifically.
We ramped-up so rapidly that Speaker Hastert considered moving the bill to the House floor this year.
The progress made in 2000 has been remarkable. In fact, it is quite possible the bill could have passed this year - IF supporters of the legislation had been willing to cut the size of the tax benefit. However, the consensus among supporters was that we should keep our powder dry until 2001, when a favorable political climate may allow passage while keeping all or most of the tax credit we are now seeking.
I am one of the strongest proponents of this strategy. I feel SWEA's supporters will have a very good chance at gaining passage next year with the bill nearly intact.
We are heading into the 107th Congress with a strong hand. We hope for a good result in 2001, one that will produce a hefty financial incentive-and reward to small businesses that train new masons.