ACEC study on the 2017 Tax Cuts and Jobs Act

We are pleased to share ACEC’s just-released study on the impacts of TCJA on the engineering industry. As you know, key provisions in TCJA are scheduled to expire at the end of 2025 unless Congress acts. The study is designed to encourage Congress in its efforts to extend TCJA and we have a good story to tell:

• Broad economic impact: the direct, indirect, and induced economic activity generated by the engineering industry because of the 2017 tax cuts is expected to produce $1.4 trillion in revenue for the US economy in 2026, supporting 7 million jobs, $454 billion in wages, and $785 billion in GDP.

• Job and wage effects: Without TCJA extension, the industry could see 39,400 fewer jobs and $4 billion less in wages in 2026 alone. Over 2026-2029, the expiration scenario could result in 391,000 fewer jobs and $14 billion less in wages.

• Investments due to TCJA: When asked how they allocated their additional revenue from tax savings in 2018, most firms identified "Investments in People" as their primary focus. This included increased wages and benefits, new hiring initiatives, and expanded training programs. Firms also directed savings toward investments in technology and expanded business operations.

We are already using this data in our advocacy on the tax bill moving through Congress and it will feature in the Hill visits during the upcoming ACEC annual convention and legislative summit.

The timing couldn’t be better as the House Ways and Means Committee is expected to mark up the tax portion of budget reconciliation next week or the following, with a House floor vote to follow. That House floor vote could happen the week of the convention and ACEC members will have this key data to use in their discussions with lawmakers and their staff.