Supreme Court overturns Chevron doctrine
In a major development that could greatly affect federal regulatory policies, the U.S. Supreme Court overturned the landmark 1984 decision in Chevron vs. National Resources Defense Council. During the past 40 years under the Chevron doctrine, courts generally have deferred to federal agency determinations in regulatory matters, particularly when the underlying statute was ambiguous in some manner. In the court’s June 28 decision ruling on two challenges to lower courts’ application of the Chevron precedent, Chief Justice John G. Roberts Jr., writing for the 6-3 majority, said the doctrine of deference to agency interpretation of laws “has proved to be fundamentally misguided” and gave too much power to regulatory agencies.
This new ruling likely will give plaintiffs a better chance of succeeding when challenging regulations in court. This could have significant effects on recently issued regulations affecting the roofing industry, including a regulation by the Occupational Safety and Health Administration regarding workplace inspection procedures and a rule issued by the Department of Labor’s Wage and Hour Division setting rules for employee overtime compensation—both of which face legal challenges. Moreover, with greater legal scrutiny of regulations in the future, agencies will be under more pressure to ensure they are reasonable and do not exceed the authority granted under laws passed by Congress.
Support ROOFPAC at NRCA’s Midyear Committee Meetings in Chicago!
Join your friends and colleagues for a fun cocktail reception in support of ROOFPAC Wednesday, July 17, from 5:30-7 p.m. at Gibsons Bar & Steakhouse ($150 per person/$225 per couple). Members of NRCA’s Political Insiders Council and Capitol Hill Club are invited to attend complimentary as a benefit of their membership. We also would like to thank our sponsoring partner Johns Manville for making this event possible.
To RSVP, please fill out our form and email it to Teri Dorn at tdorn@ncra.net or call (202) 510-0920 with questions.
IRS to recover interest on invalid credit refunds, including the Employee Retention Credit
On July 1, the IRS issued proposed regulations that would assess an underpayment of tax on any overpayment of interest paid to a taxpayer on a refund of certain COVID-era employment tax credits.
This proposed rule is focused on employment tax credits enacted under the Families First Coronavirus Response Act; the Coronavirus Aid, Relief, and Economic Security Act; and the American Rescue Plan Act of 2021 and includes the Employee Retention Credit.
Specifically, the IRS states the rules would provide that any overpayment interest paid under section 6611 to an employer for an erroneous refund of the COVID-19 credits will be treated as an underpayment of the taxes imposed under section 3111(a) or (b), as applicable, and so much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(a) or (b), as applicable, and may be assessed and collected by the secretary in the same manner as the taxes.
House Committee releases career and technical education funding bill
The House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies recently released its fiscal year 2025 appropriations bill, which proposes many cuts to numerous education and job training programs. However, the bill does propose a slight increase of $10 million for Perkins State Grants, which is an NRCA priority. Unfortunately, cuts in the bill include a 57% cut for Workforce Innovation and Opportunity Act State Grants; 25% cut to the Department of Labor’s Employment and Training Administration; $135 million decrease to Registered Apprenticeship programs; and the elimination of funding for Workforce Innovation and Opportunity Act Youth Job Training. This proposal likely will be significantly modified during consideration by the House Appropriations Committee, the full House and, eventually, the Senate.
On June 24, NRCA and roofing industry allies sent a letter to congressional leadership encouraging support for a robust increase of 5% or more over the previous year’s level for Perkins Career and Technical Education State Grants. The letter states “chronic workforce shortages continue to be one of the top challenges facing roofing industry employers across the U.S. as demographic trends make it ever more difficult to find qualified candidates for well-paying, family-sustaining jobs. Increased funding for career and technical education (CTE) is essential to providing strategies and tools to help employers address future workforce development needs." Write to your member of Congress requesting a 5% or more increase for Perkins CTE State Grants by visiting NRCA's grassroots advocacy website and clicking on NRCA Action Alert: Urge your members of Congress to support increased funding for career and technical education.
