The Tax Reform Act of 2014, released in draft form by U.S. House of Representatives Ways and Means Committee Chairman Dave Camp (R-Mich.), would lower the top tax rate for construction businesses from 35 percent and 39.6 percent to 25 percent regardless of entity-level structure. The proposal confirms that the 25 percent Qualified Domestic Manufacturing Income (QDMI) rate would apply to “construction of real property in the United States as part of the active conduct of a construction trade or business.”The legislation aims to reduce tax rates to provide greater incentives for investment, hiring and better wages, as well as ensure that no business engaged in domestic manufacturing, production, farming, extraction or construction would be taxed at a higher rate. Other provisions would create a new payroll tax treatment that would be unfavorable for pass-through entities and dedicate $126.5 billion to the Highway Trust Fund to fully fund highway and infrastructure investment for eight years.