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FOR IMMEDIATE RELEASE

Contact:	Emilio J. Rouco Director, Public Relations (301) 215-4549 E-mail: ejr@necanet.org
Date:	03-24-99

"Death Tax" Deserves to Die: NECA Endorses Estate Tax Proposals

Bethesda, Maryland - - The number one priority for tax legislation is estate tax repeal according to the National Electrical Contractors Association (NECA), the leading representative of the electrical contracting industry. In the interest of America's small businesses, NECA will support several estate tax elimination proposals in 1999. These include those introduced by Representatives Jennifer Dunn and John Tanner, Representative Chris Cox, Senator Ben Nighthorse Campbell, and Senator Jon Kyl.

Estimates show that less than 70 percent of small businesses survive a generational transfer, and as many as 87 percent do not make it to the third generation. Recent industry data indicates that over 95 percent of electrical contractors qualify as small businesses, putting them at notable risk for financial ruin stemming from this burdensome tax.

The "death tax" deserves to die. A tax which generates less than one percent of the federal government's total revenue, and one which sees 65 percent of its revenue go to enforcement and litigation, has no place in an era of growth and prosperity for small businesses.

These proposals will encourage growth and maintain stability in electrical contracting and the construction industry as a whole. It is relevant to any industry and will help all small businesses equally.

"The value of an electrical construction firm is often determined by the IRS based upon not only tangible company assets, but also an excessive valuation of name recognition and good will," said Bob White, NECA's Director of Government Affairs, "For companies such as construction contractors which are not capital intensive, this makes it difficult even to sell assets to pay the burdensome ‘death tax'."

The National Electrical Contractors Association, founded in 1901, with over 4,000 member companies which install communications and electric power systems for business and industry, is the leading representative of a segment of the construction market comprised of over 55,000 electrical contracting firms. The industry employs over 650,000 electrical workers and produces an annual volume of over $65 billion. NECA includes 118 chapters in the U.S. and others around the world. The association also sponsors the NECA Show, renowned as the industry's premiere event, which features cutting-edge technologies, highlights new trends, and provides courses to help contractors broaden their knowledge and skill. NECA is dedicated to enhancing the industry through continuing education, labor relations, current information and promotional activities. To learn more about the industry or NECA's services, please visit its web-site at http://www.necanet.org./

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