ACEC Advocates for Engineering Firms

ACEC-WA believes that placing a retail sales tax on professional services would increase project costs and reduce project volume for public and private projects throughout the state, and that public works projects funded by special or dedicated tax sources should be exempt from the retail sales tax.
  • Sales Tax on Services – Construction projects are expensive, especially publicly funded infrastructure projects. ACEC-WA believes that placing a retail sales tax on professional services would result in higher project costs and reduce total project volume.
  • Local Business & Occupation Tax – ACEC-WA believes that the imposition of local B&O tax by localities beyond where the project is located is inappropriate and further increases the total cost of projects.
  • Sales Tax Exemption for Public Construction - Public works projects that are funded by special or dedicated tax sources should be exempt from the retail sales tax.

Qualifications-based selection (QBS) ensures through state statute that the public is getting the best possible engineering and design in public projects, not compromising public safety in selecting the lowest bidder on engineering and architectural services. ACEC-WA believes it is important for public safety to avoid exemptions or exceptions to the use of QBS procedures for selecting design consultants by public agencies. ACEC supports the use of alternative public works methods where there is a clear indication that such procedures will result in improved public construction and design.

Qualifications-Based Selection – ACEC-WA believes that all publicly funded projects that involve engineering and architectural services should use of qualifications-based selection of design professionals in accordance with Chapter 39.80 RCW.

Alternative Public Works Methods - Proposals to use design-build or general contractor/construction manager (GC/CM) methods should be used for a narrowly-defined set of projects and should encourage the use of qualifications-based selection procedures for the project's design component.

ACEC believes that, to the greatest extent possible, state and local governments should contract out for goods and services, including design services. Government agencies should not be allowed to offer design services in competition with private-sector design firms, as such competition is inherently unfair to private firms.

Contracting Out - State and local governments should contract out for goods and services, including design services, to the greatest extent practicable.

Government Competition - Government agencies should not be allowed to offer design services in competition with private sector design firms, as such competition is inherently unfair to private firms.

ACEC works with AELC and its component organizations to protect the integrity of the regulation of the design professions (engineering, architecture, land surveying, and landscape architecture), and to ensure that licensing fees are used solely to carry out the purposes of those regulatory programs.

ACEC supports legislation that creates clear and objective building, land use and environmental regulations easily understood by project applicants. Governments should not impose conditions exceeding those necessary to mitigate the identifiable effects of a project. State and local governments should ensure complete and prompt permit application review based on information provided and that review should be based on compliance with plans or regulations in effect at the time the application was originally submitted and should provide for expedited permit appeals guaranteeing certainty and finality for project applicants.


2026 National Advocacy Priorities

Download 2025 Accomplishments

  • Historic Infrastructure Investment – Helped secure passage of the $1.3 trillion infrastructure funding package for transportation, water, energy, broadband, environmental cleanup, and other critical infrastructure programs.
  • Tax Policy – Engineering C corporations received the 21% corporate tax rate, and ACEC secured a 20% tax deduction for engineering S corporations and other pass-through firms, along with incentives to help employees repay student debt.
  • Expanding Qualifications-Based Selection (QBS) – Protected federal rules requiring QBS for federally funded highway, transit, wastewater, and airport projects, while supporting research demonstrating the cost and schedule benefits of QBS.
  • Promoting Contracting Out – Advanced transportation and water legislation that increases private-sector participation by state Departments of Transportation (DOTs) and the U.S. Army Corps of Engineers. ACEC also successfully opposed harmful insourcing amendments.
  • Reinforcing Federal Audit & Procurement Rules – Protected firms by prohibiting arbitrary overhead caps imposed by state DOTs and strengthening QBS requirements.
  • Increased A/E Design Fees – Successfully increased the statutory design fee limitation from 6% to 10% for firms working with the U.S. Army Corps of Engineers, NAVFAC, and AFCEC.
  • Infrastructure Authorization – Secured ACEC priorities in legislation reauthorizing FAA funding programs supporting airport projects and the Water Resources Development Act (WRDA).

Current Federal Priorities

  • Tax Policy – Protect key industry priorities, including:
    • The 21% corporate tax rate
    • The 20% deduction for S corporations and other pass-through firms
    • Restoration of full R&D deductibility
  • Infrastructure – Advance industry priorities in the next surface transportation authorization, including:
    • Increased infrastructure funding
    • Greater use of lump-sum contracts with state DOTs and other contracting agencies
  • Expanding Energy Markets – Support the expansion of traditional oil, gas, and nuclear energy markets while also protecting renewable energy markets. Advance permitting reform to accelerate energy projects.
  • Advance ACEC's Workforce Agenda – Support:
    • Additional H-1B visas
    • Greater investment in STEM education
    • Expanded use of lump-sum contracts by state DOTs
  • Environmental Regulation – Advance:
    • NEPA reforms
    • A new Waters of the United States (WOTUS) policy
    • Risk-based strategies for addressing emerging contaminants