5 Strategies Construction Firms Use to Lower Their Taxes
Post date
July 09, 2021
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Joe Bousquin, Construction Dive
A recent Construction Dive analysis revealed that public construction firms' effective federal tax rates are among the lowest of any sector. The 19 largest profitable firms in the industry paid a collective 16.8% on their U.S. profits in federal taxes in 2020, a fifth lower than the 21% statutory rate set by Congress.
Of those, 12 — or nearly two-thirds — paid less than the statutory rate.
These construction firms relied on several provisions to reduce their tax liability, all of which are completely legal. Here is a look at the top techniques they used.