WASHINGTON — The U.S. General Services Administration (GSA) has stopped its giveback requirement for contractors, according to The Washington Post.
The policy is now raising all kinds of new questions including whether GSA was trying to raise money for its own budget without congressional authorization, whether that effort was legal and whether other agencies have tried anything similar, the article stated.
"It was brought to our attention that certain people at agencies were asking for what looked like kickbacks in order to get allocations of a tax deduction. This is a major concern and I’m certainly going to investigate this," said Rep. Charles Boustany, R-La., chairman of the House Ways and Means Committee’s oversight panel.
According to the article, GSA officials insisted the practice was legal and a way for them to raise money to make additional federal buildings more energy efficient.
The tax break is called a 179D deduction after the section of the tax code that established it; it was first enacted in 2005 under President George W. Bush, the article noted.
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