On November 16, the U.S. House of Representatives passed H.R. 674 to repeal the “Tax Increase Prevention and Reconciliation Act of 2005,” legislation that imposed burdensome new requirements on government vendors and agencies. Passage of H.R. 674 represents a major legislative victory for both the Security Industry Association (SIA) and the Electronic Security Association (ESA).

Section 511 of the 2005 bill created a sweeping requirement mandating federal, state and local government agencies to withhold three percent of all payments for goods and services, starting in 2011. This withholding requirement would have dramatically increased administrative costs and information reporting for vendors and their agency customers.