Obama Signs Repeal of Contractor Withholding Law, Veterans Tax Credits

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President Obama approves legislation that repeals a 2005 law requiring governments to withhold 3 percent of payments over $10,000 to contractors and provides tax credits for businesses hiring unemployed veterans. The legislation (H.R. 674) repeals part of the Tax Increase Prevention and Reconciliation Act of 2005 (Pub. L. No. 109-222), as if it were never enacted. It applies to all payments made after Dec. 31, 2011. This date negates the effective date delay to the withholding provision made in the 2009 stimulus law (Pub. L. No. 111-5).