February 2013 Newsletter - ABC

Merit Shop MessageAssociated BuildersAnd Contractors, Inc.Pelican ChapterFEBRUARY2013From the Chairman…….. 3LA State Fishing Rodeo...3From the President…….. 4Spring 2013 ConstruconInterviewing Day andCareer Expo………………… 5GR: 2013 LegislaveSession……………..…..……. 6Membership: BeamClub…………..………….….… 8New Members……………. 8The 2012 Uncommon Leadership graduates arranged aJambalaya Benefit in December for one of their fellowclassmates, Blake McKee. Blake was the vicm of a hitand run following the LSU vs. Alabama football game thisfall. Thankfully Blake made a miraculous recovery and isfront and center in the picture at right. In an effort tolend their support, the members of the Uncommon Leadershipclass planned a Jambalaya Fundraiser to benefit hisrecovery. Thanks to ABC members and a few others, theywere able to give Blake a check for $14,769 to help with the medical expenses he incurredduring his hospital and rehab stay. Thanks to all who contributed and to the members of thisclass for exhibing true leadership and teamwork. Pictured above is Blake (center) with fellowCajun employees at their Christmas lunch on December 20th.Pelican Chapter 2013Members……………………. 102013 Spring GolfTournament Save‐the‐Date……………………………. 11Training Center Update:Spring SemesterBegins…………....………….. 12H&E Equipment ServicesRelease……………………….. 13LCEF Update: Thank you2012 Supporters…………. 15Tax Update: GreenEnergy Management…… 16LA ABC State ConvenonSave‐the‐Date………………17Regional Update: SouthwestTraining Center…… 18Legal Update: AmericanTax Relief Act of 2012…. 20Enterprise: Need forLong Term FleetManagement Strategy… 22Mark Your Calendars….. 23The Pelican Chapter Officers and Board ofDirectors connued the tradion of giving bymaking a donaon to the Wounded WearOrganizaon. In lieu of receiving a token ofappreciaon for their service to the chapter,the board, several years ago decided to make acontribuon annually to a selected program.Wounded Wear, this year’s recipient is a nonprofitorganizaon that provides clothing towounded warriors. All of the clothes have theWounded Wear logo and are altered as neededto accommodate the owner’s unique needs.Pelican Chapter President Al Bargas (le) and PastChair Jerome Mabile (right) welcomed Lt. JasonRedman.Lt. J.G. Jason Redman, a Navy SEAL foundedWounded Wear aer being wounded in Iraqin 2007. He suffered two shots to the elbowand one to the face by machine gun fire. Followingmulple transfusions and surgeries andan extended stay at the Bethesda Naval MedicalCenter he recognized the need to help thewounded returning home. The key slogan ofWounded Wear is “helping warriors rediscoverthe hero within.”The following items are includes in each of thewounded soldiers care packages: a rolling luggagebag with “Wounded War” embroideredon the outside, four T‐shirts, a Polo‐style shirtwith a Purple Heart and Wounded Wear logoembroidered on it, lounge shorts, workoutshorts and a medium‐weight winter jacket.Recipients who can’t fit the clothes aroundtheir medical devices have them tailored at nocharge.On hand at the December Board of Directorsmeeng was Ma Reams, Chairman/Founderof the local Never Quit/Never Forget chapterto receive the contribuon. Lt. Redmanjoined the presentaon via teleconferenceand addressed the aendees briefly.

MERIT SHOP MESSAGEPresidentAlvin M. BargasVice ChairMember ServicesAndy LopezEditorCaitlin StolzenthalerPrograms & EventsChairJosh CootsMERIT SHOP MESSAGE ispublished monthly byPelican Chapter, ABC. ABCis a national nonprofit tradeassociation of contractors,subcontractors, suppliers,and associates who havejoined together to advancethe construction industry byaggressively supporting themerit shop philosophy andthe free enterprise system.Copyright 2011.Pelican ChapterAssociated Builders &Contractors19251 Highland RoadBaton Rouge, La 70809225-752-1415Fax 225-751-9470www.abcpelican.orgExecutive CommitteeChair Todd Grigsby, Cajun Industries;Chair-Elect Ronnie Gulino,ISC; Secretary Andrew Lopez,Bennett Builders; Treasurer RyanGirouard, Whitney NationalBank; VC Education SarahTaylor, Gulf Coast OccupationalMedicine.; VC Outlying AreaChet Ferachi, PerformanceContractors; VC Growth TreyCrawford, Grady CrawfordConstruction Company; VC GovernmentRelations Joe Wiley,EXCEL Contractors; VC MemberServices Lee Mayeux, CajunIndustries, LLC; Past ChairJerome Mabile, PerformanceContractorsBoard of DirectorsBrian Bordelon, Triad Electric &Controls, Inc.; Jimmy Couch, TheShaw Group; Donnie David, ISC;Austin Gaffney, Regions Insurance;Greg Landry, The LemoineCo. Inc.; Dale Leblanc, CajunIndustries; Fred McManus, TheShaw Group, Inc.; Ray Neck,Turner Industries Group; GlenRedd, Triad Electric & Controls;Thad Rispone, ISC; Jill Tucker,Cory, Tucker & Larrowe; WadeWalker, Jacobs Field Services;Joe Wiley, EXCELChapter Legal CounselMurphy Foster, III, Breazeale,Sachse & Wilson Law FirmAuditorsHannis T. Bourgeois, LLPFROM THE CHAIRMAN: WELCOMING THE NEW YEARTodd Grigsby, Cajun IndustriesOver the years I have been to several of the ABC Naonal meengs all overthe country. I have met many people from across the United States whobelieve enough in the merit shop philosophy to expend their me, money,and energy to help make ABC beer. A queson that many of the Pelicanchapter parcipants are connually asked is “How does the Pelican Chapterdo it?” The reason this queson is asked is three‐fold; first, they seethe money that we are able to raise for FEA (Free Enterprise Alliance) andthe PAC (Polical Acon Commiee). Secondly, they see the passion ofour Pelican members. This passion is usually expressed by the very few members thatwe have in aendance at these events. But, we are able to tell them that our passioncomes from our members; and without passionate members, you will not have a passionatechapter. As we aend the upcoming naonal meengs this year, we will con‐nue to bring the passion. Lastly, the reason the Pelican chapter stands in high regardnaonally, is our staff. We have a seasoned staff that strives to keep our chapter onthe pinnacle and takes pride in working for the Pelican Chapter.On Thursday, January 17 th , the Pelican Chapter held its annual EIC Awards Ceremony.The event was held at the Renaissance Hotel, with a large group of winners in aendance.It is extremely fulfilling to see all the incredible projects that our members construct.The Pelican Chapter is going to be well represented at the Naonal EIC AwardsBanquet with five Eagle and four Pyramid award winners. So congratulaons to all theExcellence in Construcon award winners.ABC graduaon was held at The Marriot on January 31 st . These men and womenshould be applauded for their persistence and determinaon to complete this careerenhancing endeavor. These graduates are the backbone of our industry and the lifebloodof our companies. Congratulaons!June 20‐22, 2013Sand Dollar MarinaGrand Isle, LAT M S AMerit Shop is a way of doing business in which companies reward employees based onperformance and encourage them to reach their highest level of achievement, and in whichcontracts are awarded based on safety, quality, and value, regardless of labor affiliaon.

FROM THE PRESIDENT: 2013 ‐ NOT A YEAR FOR SPECTATINGALVIN M. BARGAS, PELICAN CHAPTER PRESIDENT4How many mes haveyou heard me say it,“Your Children’s andGrandchildren’s Future isNot a Spectator Sport!”Again, I do not knowwho coined this phrase,but now that I am officially a“grandpa,” I want to reiterate thepoint when it applies to polics.So you ask, “Well what does thathave to do with me and my companyso early in the year 2013?” Wellthe answer is Ms. Melanie will becalling you shortly. I have askedMelanie Searles to look out for mygranddaughter, Amelia Rose, andfor your children and grandchildrenas well if you are so blessed. Theyneed your help. You see, AmeliaRose’s first words were “Poppa‐Cowboy, I just love free enterpriseand Merit Shop. Can you preserve itfor me and my friends?” (Well, thatmay be a stretch since she was bornon December 26 th , but hopefullyyou get the message.)The future of free enterprise andmerit shop as we know it in ournaon today, and as we would likethose who follow us to know ittomorrow, is in jeopardy: our childrenand grandchildren do need ourhelp. While the November elecondid not turn out the way many of ushoped it would, we must regain ourcomposure and prepare for the nextopportunity.In 2014, Louisiana and other stateswill see 33 seats in the United StatesSenate come up for elecon. Thisrepresents the seats of 20 Democratsand 13 Republicans. The currentmake up of the Senate is 53Democrats, 45 Republicans and 2Independents.There are many reasons why weneed a conservave majority in theU.S. Senate. Here are a few.Merit Shop Message | February 2013The current U.S. Senate majority isno friend of the merit shop construc‐on industry. Harry Reid and his colleaguesaccept tens of millions ofdollars from organized labor. Remember,“Money is the Mother’sMilk of Polics”. Just follow themoney to D.C. and you will likely seehow the votes will shake out.Having a pro‐business majority inthe Senate will force the President’shand and put more pressure on himto “compromise” on the pressingissues facing our naon. CurrentlyLouisiana is sing on billions ofdollars in industrial investment overthe next 10 or so years. Energy, environmental,and social policies andother legislaon will determine ifthis enormous investment will occurhere or elsewhere.And one of the most important factsfor Amelia Rose and her futureschoolmates is the fact that the U.S.Senate is who confirms SupremeCourt Jusces. There is a high possibilitythat one or more of the currentjusces will rere during Obama’ssecond term. Our only hope to ensurethat the President’s nominee(s)are not “too liberal” for the bench isfor you and I to elect a pro free enterpriseRepublican majority in theU.S. Senate.We must join together across ournaon to support the elecon ofmerit shop and pro free enterprisemembers of the U.S. Senate. It reallymaers not where the Senatorcomes from as longas he or she supportsour corebeliefs: will heor she votewith us on theissues? By supporngABC PACand The FreeEnterprise Alliance youwill be supporng merit shopcandidates across America.ABC PAC is the “polical voice” of AssociatedBuilders and Contractors. Asone of the largest business PAC’s inWashington ABC PAC’s endorsement ishighly sought aer by any pro‐businesscandidate running for Congress. ABCPAC not only provides the support candidatesneed to run for elecon; ABCPAC support will lead candidates toABC, before and aer the elecon,when they are seeking vital informaonon how Senate acons will impactthe construcon industry. If youearn your living from construcon,whether you are a contractor, a supplieror an industry professional you oweit to the industry to support ABC PAC.As a supporter of free enterprise and amember of ABC you face issuesresulng from federal legislaon andregulaon each and every day. TheFree Enterprise Alliance (FEA) is ABC’sissue advocacy arm; very few organiza‐ons have enes such as this. Simplyput, FEA is what separates ABC fromthe rest of the pack and makes us oneof the most influenal groups in Washingtonand across the country. FEAprovides a wealth of knowledge to awide secon of governmental andelected officials every day, factualknowledge that influences decisionsmade at each level of government includingthe US Senate.Now here is where Ms. Melanie comesin. Melanie will be calling you aboutthe me you receive this newsleer.She will be asking for your support.Please take her call; please supportABC PAC and FEAso Amelia Rosecan enjoy thefreedoms andrewards of afree enterprisena‐on………..justlike you and herPoppaCowboy enjoystoday.

March 8, 20138:00 a.m. - 4:30 p.m.LSU Student Union BallroomLSU Career Services invites you to participate in our Construction Interviewing Day. For this event,recruiters interview Construction Management, Industrial Engineering and Civil Engineering studentsand alumni for full-time, internship and co-op positions.The event will take place from 8:00 a.m. – 4:30 p.m., with a Career Fair portion taking placefrom 12:30 – 1:30 p.m. Lunch will be served before the Career Fair from 11:30 a.m. – 12:30 p.m.REGISTRATIONTo register for this event, you will need to login to Careers2Geaux. From your home screen select“LSU Spring 2013 Construction Interviewing Day.” Registration closes Friday, February 1.QUESTIONS?Contact Trey Truitt (trey@lsu.edu), Associate Director, Employment Services, LSU Career ServicesMerit Shop Message | February 20135

GOVERNMENT RELATIONS: 2013 LOUISIANA LEGISLATIVE SESSIONJOHN WALTERS, LA ABC VICE PRESIDENT OF GOV. RELATIONSThe 2013 Louisiana Legislavesession conveneson April 8, 2013 andadjourns no later thanJune 6, 2013. The sessionis considered a fiscalsession and the majorityof the bills will deal with appropria‐ons, the state budget, and taxes.Legislators are allowed to file localand special bills through the 10 th dayof session. Bills not within the subjectmaer (fiscal, local or special)are allowed, but must be prefiledand are limited to 5 per legislator.You can rest assured that all billsthat promote free enterprise, opencompeon, or free market determinaonwill be supported. Likewise,you can expect any bills that seek tothreaten our merit shop philosophyand our belief in free enterprise andopen compeon will be met withstaunch opposion.LEGISLATIVE SEATSLouisiana has two open legislaveseats. Louisiana House District 79is vacant due to the resignaon ofRepresentave Tony Ligi. Ligi, whosat on the Appropriaons Commieeand was chair the LouisianaRepublican Delegaon in theHouse, is resigning to take a posi‐on as director of the JeffersonBusiness Council. House SpeakerChuck Kleckley has called a specialelecon to fill HD 79.Candidate qualifying will be heldJanuary 9 th ‐11 th . The primary elec‐on will be held on March 2 nd andthe general elecon (if necessary)will be held on April 2 nd . HD 79 islocated in Jefferson Parish.Louisiana House District 65 isvacant due to the resignaon ofRepresentave Cliff Richardson.Richardson, who sat on the HouseTransportaon Commiee, NaturalResources Commiee, and MunicipalAffairs Commiee, le to paycloser aenon to his health andfamily.House Speaker Chuck Kleckley hascalled a special elecon to fill HD65. Candidate qualifying will beheld January 9 th ‐11 th . The primaryelecon will be held on March 2 ndand the general elecon (if necessary)will be held on April 2 nd . HD65 is located in East Baton RougeParish.MICHIGAN WORKERS HAVEREASON TOCELEBRATERIGHT TO WORKAssociated Builders and Contractorshas commended Michigan Gov. RickSnyder for signing a new Right toWork law that will protect allworkers in the state from being forcedto pay union dues as a requirement ofemployment. Michigan is the 24thstate in the naon to enact a Right toWork law, and similar legislaon hasbeen introduced in 12 other states.“Workers in Michigan have a reason tocelebrate because they now have theright to freely decide whether to join aunion,” said 2012 ABC Naonal ChairmanEric Regelin, president of Granix,LLC, Ellico City, Md. “No Americanshould be required to join a labor unionjust to keep a job, and no residentof Michigan should be forced to paydues to an organizaon he or she doesnot believe in. That is just wrong.“As in other Right to Work states,Michigan likely will see new businessesmoving into the state and creangmore jobs,” Regelin said. “Hopefullymore lawmakers–strapped with massivebudget deficits, falling revenuesand stagnant economic growth–willconsider a Right to Work law to helpturn their economies around.”6Merit Shop Message | February 2013

LED HIGHLIGHTSSTATE ECONOMIC SUCCESSES IN 20122012 Louisiana Economic Development recently released a report detailing selected economic highlights for calendar year 2012.The report may be downloaded at:hp://www.louisianaeconomicdevelopment.com/downloads/2012_Selected_Economic_Highlights.pdfLED Secretary Stephen Moret issued the followingstatement on Louisiana's economic performance over thelast five years, including 2012:"Since Gov. Bobby Jindal took office in early 2008,Louisiana's economy has outperformed the South and U.S.by any reasonable measure. For example, Louisiana's jobperformance has been beer than that of nearly everyother Southern state since January 2008, and employmentlevels in Louisiana have grown faster than the South and theU.S. since the end of the naonal recession."According to the U.S. Bureau of Labor Stascs, since January2008, the U.S. has shed 3.0 percent of its jobs and theSouth overall has seen employment decline by 2.2 percent.In contrast, Louisiana's employment is up 1.6 percent duringthat same period of me. Louisiana is one of only six states(including Washington, D.C.) that have seen employmentgains since January 2008."More recently, Louisiana's nonfarm employment grew by40,100 jobs from November 2011 to November 2012, agrowth rate about 30 percent faster than the South and 50percent faster than the U.S. during that 12‐month period."Louisiana's unemployment rate has remained below thatof the South and the U.S. every month since the beginningof the naonal recession. Louisiana's unemployment ratewas 5.8 percent in November 2012, well below the 7.3percent Southern average and 7.7 percent naonal average."The U.S. Census Bureau recently reported that Louisianaexperienced its fih consecuve year of net populaonin‐migraon, with more people moving into our state thanleaving Louisiana. During the last four years, over 20,000more people moved into Louisiana from other U.S. statesthan moved out of Louisiana to other U.S. states. This is instark contrast to the 15‐year period from 1990 to 2005,when Louisiana experienced net domesc out‐migraon ofmore than 7,500 people every single year."A variety of naonal publicaons recognized Louisiana'sconnued economic development progress in 2012. Forexample, Chief Execuve reported that CEOs naonwideranked Louisiana as the most improved state for businessover the last four years. Site Selecon ranked Louisiana No. 7in its business climate report, while Area Development rankedLouisiana No. 6 among the Top States for Doing Business.Business Facilies ranked Louisiana No. 5 for the Best BusinessClimate in America, as well as No. 1 in the U.S. for StateWorkforce Development programs, highlighng LEDFastStart as the naon's top program for the third consecu‐ve year."Louisiana had its best year for business development in thelast five years, securing more retained jobs, more new jobsand more capital investment than in any of the previous fouryears. Louisiana announced dozens of company expansionsor relocaons in 2012, launching projects that will result inmore than 24,000 new jobs and $22.3 billion in new capitalinvestment, along with hundreds of millions in new sales forsmall businesses across Louisiana."Among the dozens of business development wins weregame‐changing projects such as GE Capital's new 300‐jobtechnology center in New Orleans; Ronpak's relocaon of itscorporate headquarters from New Jersey to Shreveport; the$2.1 billion CF Industries expansion in Donaldsonville; BentelerSteel/Tube's 675‐job seamless steel tube mill and steel millproject at the Port of Caddo‐Bossier; and Sasol's integratedgas‐to‐liquids and ethylene complex, a 1,250‐job, $16‐21 billioninvestment in Westlake that ranks as the largest manufacturinginvestment in state history."A robust U.S. jobs recovery remains elusive. Nevertheless, in2013, Louisiana will be well‐posioned to secure a healthyshare of new business investment projects in the U.S. Moreover,Louisiana's economy will experience significant jobgrowth from projects announced in 2008 through 2012."In the year ahead, LED will pursue targeted iniaves to enhanceLouisiana's economic compeveness; retain Louisiana'sexisng economic driver firms; support Louisiana'ssmall businesses; culvate aracve development sites; offerworld‐class, customized workforce soluons; and recruit newgrowth industries to Louisiana. LED also will connue its aggressiveefforts to posion Louisiana to benefit from the adventof low, stable natural gas prices more than any otherstate in the U.S."Merit Shop Message | February 20137

MEMBERSHIP: ABC MEMBERS JOIN THE BEAM CLUBANNA ZEBEAU, DIRECTOR OF MEMBERSHIP GROWTH8Merit Shop Message | February 2013As an overview, the Beam Club is a presgious club,which recognizes those members who havedisplayed effecve support, and the ability torecruit quality members in the associaon.Industry peers make up our associaon’s mostcredible sales force.For an ABC member to join the Beam Club, one would need torecruit a minimum of five (5) new ABC members for the PelicanChapter. When one recruits 5 new members, they are enrolledin the Beam Club at the first level (Beam Club Level). The toplevel is the Chair’ Gold Level with the recruitment of 250+members!The Pelican Chapter is pleased to “SPOTLIGHT” the ABC PelicanChapter members on the right in their respecve achievedBeam Club Level as of year‐end 2012:Congratulaons to these members and THANK YOU FOR YOURSUPPORT AND COMMITMENT TO THE PELICAN CHAPTER,ASSOCIATED BUILDERS AND CONTRACTORS!2013 Membership GrowthCommittee GoalsUnder the leadership of the 2013 ABC Pelican Chapter ChairmanTodd Grigsby (President of Cajun Constructors), the 2013Leadership Conference was held on December 13, 2012. Part ofthe conference was to set goals for the Membership GrowthCommiee. Execuve Vice‐Chair of Membership Growth, Mr.Trey Crawford, (President of Grady Crawford Construcon)facilitated the discussion on the 2013 goals. The goals were setas follows:1. Focus on the recruitment ofa. Commercial Contractorsb. Oilfield Industry2. New and Prospecve Membersa. All New Members will be adopted by a MembershipCommiee member to ensure they are welcomed tothe Chapter and introduced to other members atevents.b. New Members and Prospecve Members will beidenfied at all events by wearing a “New Member”and “Guest” badge idenficaon.Kenny Wolf with Cajun Deep Foundaons will serve as the 2013Membership Growth Chairman and Wes Mincin, Triad Electric &Controls will serve as the Vice Chairman.If you or company representave(s) are interested in genginvolved in the Membership Growth Commiee, please contactme at 225.753.2541.M B L10 – 14 SPONSORED MEMBERSRonnie Gulino – ISCGlen Redd – Triad Electric & ControlsShane Redd – Triad Electric & ControlsB C L5 – 9 SPONSORED MEMBERSStephanie Chenier – Pelican Promotions andAdvertising SpecialtiesHank Coates – Pala InterstateMonique Hibbs – Ashtead TechnologyJerome Mabile – Performance ContractorsJan Newman – MED‐PRO Medical ProfessionalProtective ClothingWNM ABC P CDB C, LLCWillis DeBose1823 E. Aon VillaGonzales, LA 70737225.644.1468225.644.5019Concrete ContractorSponsor: Donn Peterson, GROUP ContractorsI S RTony Rhodes7987 Pecue Lane Suite DBaton Rouge, LA 70809225.755.4726225.755.8380www.industrialsupplyandrental.comSupplierSponsor: Glen Redd, Triad Electric & Controls

Merit Shop Message | February 20135

Renewals as ofJanuary 14, 20131st Guard Safety, LLCA & B Concrete Coring CompanyAAA Rent‐All, Inc.ACE Enterprises ServicesAcme Refrigeration of BatonRouge, LLCAdvantage Personnel andAdvantage Computer ServiceAdvantage StaffingAdvantous Consulting, LLCAerial Access Equipment, Inc.AKM, LLC ‐ Volks Constructors DivisionAll Crane Rental of LouisianaAllrite Electric, Inc.American Pride FabricatorsAmerican Rigging & Supply Co.Antares Technology SolutionsApache Industrial Services, Inc.ARCArco Distributors, Inc.Ardent Services, LLCArthur J. Gallagher Risk ManagementServices, Inc.Ascension Medical ClinicAscension Ready Mix, IncAssociated Grocers, Inc.AV Solutions, LLCAWC, Inc.Baker CorpBaker, Donelson, Bearman, Caldwell &BerkowitzBaton Rouge Duplicating ProductsBayou Supply & SafetyBeard Construction Group, LLCBengal Crane & RiggingBennett Builders, LLCBenton's Equipment andConstruction, Inc.Bernhard Brothers MechanicalContractors, Inc.Bernuchaux Contractor, Inc.Bevel Tech Group, IncBIC Alliance, Inc.Blue Cross & Blue Shield/LABluewater Constructors, Inc.Boh Bros. Construction Co., LLCBottom Line Equipment, LLCBrammer Engineering, Inc.Brand Energy Solutions, LLCBraud Company, Inc.Breazeale, Sachse & Wilson, LLPBrian Harris ChevroletBurkhalter Rigging, Inc.Cajun Industries, LLCCapital One BankCapital Valve & Fitting Co.10Merit Shop Message | February 2013Capitol Welders Supply Co., Inc.Catering Cajun of Louisiana, LLCCCC Group, Inc.Central Oil and Supply Corp.Chaffe McCall L.L.P.Champion Graphic CommunicationChef KD Louisiana LegendsChustz Electric, LLCClaymar Construction, LLCCLM Equipment Co., Inc.CLP Resources, Inc.CMC Capitol Steel, Inc.CNA InsuranceCoastal Industrial Contracting of LACoastal Welding SupplyCOMET‐Comprehensive OccupationalMed Eval & TestCommand Services IncorporatedComprehensive OccupationalResources, LLC (CORE, LLC)Contractors Supply & Equipment Co.Cory, Tucker, & Larrowe, Inc.Crawler Supply Company, LLCCreative Resource GroupThe Creative TouchCWL Contractors, LLCD.M.I. Contractors, Inc.Deep South Containers, LLCDetlefsJohnson A Division ofGallagher Benefit SerDeumite Construction, LLCDMC‐Carter Chambers, LLCDoggett Machinery ServicesDolese Bros. Co.Dubois Sheet Metal Works, Inc.Dunham Price, LLCE. P. Breaux ElectricalElectrical Reliability Services, Inc.EMCO TechnologiesEmerson Process ManagementEmpire Scaffold, LLCEnterprise Fleet ManagementEnvironmental Coating Services, LLCEXCEL Contractors, Inc.F. L. Crane & Sons, Inc.Fabricated Steel Products, Inc.Ford Bacon & DavisFrazee Recruiting ConsultantsFugro Consultants, Inc.G. T. Michelli Company, Inc.Gainey's Concrete Products, Inc.Gerdau AmeristeelGerry Lane ChevroletGonzales Electric Service, Inc.Grady Crawford ConstructionCompany, Inc.Grand Construction Co. LLCGroth Equipment CorporationGroup Industries, LLC.Gulf Coast Equipment ServicesGulf Coast Occupational Medicine, IncGulf South Safety Consultants, LLCH & E Equipment Services, Inc.H & H Embroidery & Promotions, Inc.H & H Industrial Contractors, Inc.Hahn Sales/Sensors, Inc.Hannis T. Bourgeois, LLP, CPAHargrove Engineers & ConstructorsHebert Steel Company, Inc.Herrick Consulting Group, Inc.‐SandlerTrainingHimmel's Architectural Door &Hardware, Inc.Hoist & Crane Service Group, Inc.Holmes Building MaterialsHowell Industries, Inc.Human Dynamics, Inc.Hutco, Inc.Hydro Consultants, Inc.I.E.C. Simulations, Inc.Iberville Insulations, L.L.C.Industrial Cooling Tower Services, Inc.Industrial Specialty Products, LLCIndustrial Supply, Inc.Industrial Thermal Services, LLCInstrument Piping Components, LLCInstrument Piping Technologies, LLCInsulations, Inc.IronPlanetISCJ.W. Grand, Inc.Jacobs Field Services NorthAmerica, Inc.James Construction Group, LLCJM Test Systems, Inc.JPMorgan Chase Bank, N.A.Kean MillerKellogg, Brown & Root, LLCThe Keyfinders Team Real EstateL. S. Womack, Inc.Lamont‐Roe‐Werner ConstructionCo., Inc.Lapco Manufacturing, Inc.LaPorte, CPA'S and Business AdvisorsLard Oil CompanyLaunch MediaLegend's Mechanical, LLCThe Lemoine Company LLCLightning Bolt & Supply Inc.Lofton Staffing and Security ServicesLouisiana ‐ CSI, LLCLouisiana Agencies, LLCLouisiana Air Systems, Inc.Louisiana CATLouisiana CompaniesLouisiana Cutting, LLCLouisiana Landscape SpecialtyLouisiana Staffing Unlimited, Inc.Louisiana Workers CompensationCorporation (LWCC)M & J Valve Services, Inc.Mac‐Nett Industries, Inc.Maginnis Construction Company, LLCMaintenance EnterprisesMammoet USA South, Inc.Mansfield Industrial, Inc.MAPP Construction, LLCMason ConstructionMED‐PRO Medical ProfessionalProtective Clothing,IMerit Electrical, Inc.Michael J. David PaintingContractor, LLCMistras ServicesMMR Constructors, Inc.Monroe Welding Supply, Inc.Moody‐Price, L.L.C.Moore Construction, Inc.The Mundy CompaniesNAES Industrial ServicesNameplates, Inc.National Trench Safety, LLCNES RentalsNPC Services, Inc.Office DirectOhmstede Industrial ServicesOnebane Law FirmOnesource EHS, LLCOverland Contracting, Inc.Owens Consulting Services, LLCP.B.C. Industrial Supplies, Inc.Partco, Inc.The Paul R Thompson GroupPCL Industrial Construction CompanyPelican Promotions and AdvertisingSpecialtiesPerformance Contractors, Inc.Performance PublishingPeterbilt of LouisianaPetrin CorporationPickett IndustriesPortable Machine Works, Inc.Professional CommunicationsProject Trade SolutionsQuality Bolt & Screw CorporationQuality Iron of LouisianaR & R Construction, Inc.Rabalais I & E ConstructorsRam‐Fabricators, LLCRaygen ServicesRegions Bank

Regions Insurance, Inc.Repcon, Inc.Reulet Electric Supplies, LLCThe Reynolds CompanyRichard Oil and Fuel, LLCR‐S‐H Engineering, Inc.S & S Sprinkler Co., L.L.C.Safety Council of Louisiana Capital AreaSAIA Electric, Inc.Scaffolding Rental & Erection Services, LLCScott Construction & EquipmentScott‐Macon Equipment, Inc.Seale & RossService Line, Inc.Settoon Fabrication, Inc.Sexton & HebertShelby J Gaudet Contractor, Inc.Sorrento Lumber Co., Inc.Sound & Communication Systems, Inc.Southeast Texas Industrial ServicesSouthern Power Systems, Inc.Southwest Stainless, Inc.Spacemark, Inc.Spedmill, Inc.Spiral Metals CorporationSSA Consultants, LLCSTARCON A Cianbro CompanyStevens Construction, Inc.Stun Design & InteractiveSummit Electric SupplySystems Contracting CorporationT T J Enterprises, LLCTaylor, Wellons, Politz & Duhe APLCTech Service Products, Inc.Ten "M" VendingThe Shaw Group, Inc.The Tim Johnson Consulting GroupThrasher Construction Inc.Tiger Sanitation Services, LLCTillage Construction Co., LLCTMC Contractors, Inc.Tolunay‐Wong Engineers, Inc.TOPCOR Services, LLCTotal Energy Solutions, LLC‐SHARPApprovedTotal Occupational MedicineTotal SafetyTPS Gulf Southeast, LLCTrade Construction Co., LLCTriad Electric & Controls, Inc.Triple "S" Industrial CorporationTurner Industries Group, LLCTyco Thermal Control ‐ Tracer DivisionU S Fusion, LLCUnited Office Supply & EquipmentCo., Inc.United Rentals Trench SafetyWalk On's CateringWatson Mechanical Services, Inc.Weber Marine IncorporatedWelding Testing Lab, Inc.Westgate, LLCWhitney National BankWholesale ElectricWilliam S. Nadler, Jr., Inc.Wolseley Industrial GroupWorkbox, LLCWray & Pierce LLPWright&Percy Insurance A Division ofBancorpSouth8:00 AM & 1:30 PMShot Gun Starts4 Man Scramble$150 / player(includes green fee, cart,meals, beverages, and prizes)SPONSORSHIP OPPORTUNITIESHole Sponsor $100(Signage on 1 of 18 holes)Hole Sponsor with Tee Access $250Must stay for ENTIRE Tournament(Set up a tent, cook, display your products,network with over 150 golfers at your hole)Beverage Cart Sponsor $250(Display company logo on golf cart while ridingthrough the course distributing beverages)Breakfast Sponsor $100(Bring Breakfast for players, recognition asbreakfast sponsor)Lunch Sponsor $400(Recognition as lunch sponsor)Merit Shop Message | February 201311

TRAINING CENTER: SPRING SEMESTER BEGINSROBERT CLOUATRE, DIRECTOR OF EDUCATION & TRAINING12As menoned in ourJanuary newsleer, theTraining Center’s springgraduaon was held onJanuary 31 st at theMarrio. We had 118graduates as of this arcle.As usual the welding graduateswere the largest group with 52cerficaons awarded. Twenty sevenConstrucon Site Safety Techniciangraduates received graduaoncerficates along with 9 Planningand Scheduling students. EarthMoving, Millwright and MobileCrane each had 10 graduates. Electricaland Instrumentaon studentsgraduate at the end of the SpringSemester.One parcular graduate of note wasCody Foret, a student at AssumponHigh School. Cody achieved hiscombinaon welding cerficaonthis semester and is currently workingon more advanced welding techniques.He has achieved all of this atthe ripe old age of 16. When hegraduates from high school, Codywill be very employable in a highdemand occupaon.We are very excited that the SpringSemester began with 1,222 students.This is a connuaon of alarge Fall Semester class. With theconnued demand for trainedskilled crasmen we are encouragedby this increase. This total isexpected to increase with the addi‐on of the Central Welding andAscension Pipefing high schoolstudents. As of the deadline for thisarcle we did not have thosecounts.The Training Center hosted asecond round of training for theAccelerated Career EducaonProgram (ACE). The ACE is a grantprogram federally funded and wasMerit Shop Message | February 2013obtained by the Baton Rouge CommunityCollege. A pipefingclass with 10 students concludedon February 19 th . Thisprogram is intended for studentswho are interested inearning their GEDs and atthe same me receive industrialtraining throughan accelerated curriculum.Our students completedlevels 1 and 2 of the pipefingcurriculum in just 3months where it normally takes ayear during our normal night trainingclasses. These students’ resumeswere distributed to some of ourmember contractors who haveagreed to do their best to employthem. Students that completed thistraining will be given the opportunityto enroll in level 3 Pipefing classesin the fall.The Hydroblasng classes have provento be a valuable tool and asset toour member companies. As a result,we had plans to hold another class inFebruary. This brings the total classesheld so far to 4 with many more likelyto be ulized by companies that employhydroblasng.The East Iberville Workforce Iniavestarted training in the month of January.The industrial facilies in EastIberville have a demand for trainedworkers to become educated in processtechnology and industrial construcon.Training in both beginningprocess technology (PTEC 101) andNCCER CORE will take place at EastIberville High School two days perweek and will be free of charge toaendees. Courses are open to highschool juniors and seniors as well ascommunity residents who meet theminimum requirements for admission.These courses will preparestudents for either an educaon inprocess technology or a construcondiscipline such as crane operaon,electrical, heavy equipment operator,instrumentaon, millwright,pipefing, or welding.John Pacillo of Mexichem Fluor Inc.was quoted in a press release assaying, “The East Iberville WorkforceDevelopment Iniave was developedto create awareness and promotecareer opportunies in the industryfor our community residents.It has been a long standing goal ofthe plant managers to hire from thecommunity. By taking advantage ofthis iniave, East Iberville residentswill be able to develop some of theskill sets required for employment inour plants.”This iniave is sponsored by theindustrial petrochemical facilies inEast Iberville Parish. Many partnershave also come together along withthem to make this training possible.They include: Associated Buildersand Contractors Pelican Chapter,Baton Rouge Community College,the Iberville Parish School System,The Office of the Mayor of St. Gabriel,the Greater Baton Rouge IndustryAlliance (GBRIA), Iberville ParishAdult Educaon and the Greater BatonRouge Literacy Coalion. The TimJohnson Consulng Group pulledeveryone together to make this visiona reality.

Training CenterDates to RememberSafety Commiee MeengFirst Thursday of each month at 7:30 amEducaon & Manpower CommieeSecond Thursday of each month at 2:00 pm ABC Cra Compeon February 21, 2013 Fall Early Enrollment for Current Students April 1, 2013 Open Enrollment for Fall Semester May 1, 2013 Last Day of Spring Semester May 23, 2013 Memorial Day Holiday May 27, 2013Training Center Enrollment ReportCraftEnrolledElectrical (EP Breaux) 70Electrical Core 73Electrical 174Instrumentation 108Heavy Equip / Mobile Crane 125Millwright 151Pipefitting 77Plumbing (Mech. Systems) 8Welding 314Specialty Classes 85Ascension Pipefitting 0Central Welding 0Summer Electrical 8Summer Welding 29Sub Total 1222Training Center Total 1222BATON ROUGE AND GONZALES STORESCOMBINE INTO ONE FACILITYEffective November 26, 2012, H&E Equipment Services, Inc. (H&E) announced the consolidation of its BatonRouge and Gonzales, Louisiana branch operations into one, newly constructed, facility in Baton Rouge.The new Baton Rouge facility is located at 7502 Pecue Lane, Baton Rouge, LA, 70809, phone 225-356-6113.The new location is much larger than the original stores, with 44,000 square feet of office and shop space, on 15acres of property. In order to better serve customers, new, used, and rental equipment inventories have been expanded.In addition, a large portion of the new building has been devoted to the product support side of the businesswith 18 service bays and a 9,200 square foot parts warehouse.“Due to growth, and the close proximity of both stores, it makes a lot of operational sense to combine these twolocations into one operation. The efficiencies we gain will improve customer service, expand our product supportand service capabilities, grow our rental fleet, and help ensure success for our next 50 years,” commented JeffStringer, H&E Baton Rouge branch manager.The Baton Rouge facility is one of nine full-service branch facilities in Louisiana, specializing in rentals, sales,parts, service and training for earthmoving equipment, cranes, aerial lifts and general construction equipment. InLouisiana, H&E is the authorized dealer for Komatsu, Manitowoc, Grove, Manitex, JLG, Genie, Wirtgen,Takeuchi, Gomaco and many other top-brand manufacturers.Originally founded in Baton Rouge in 1961, H&E is ranked 11 in RER’s Top 100 and is a leading supplier of equipment forconstruction, industrial, mining, manufacturing and material handling industries. H&E has 65 locations throughout the GulfCoast, Mid-Atlantic, Intermountain, Southwest, Northwest, and West Coast regions. More information on H&E can befound on their website at www.HE-equipment.com.Toby HawkinsVice President of Marketing801-974-0388 or 800-468-0388Merit Shop Message | February 201313

8Merit Shop Message | February 2013

LCEF UPDATE: THANK YOU 2012 SUPPORTERSASHLEY BRYANT, LCEFThe Louisiana Construcon Educaon Foundaon had an incredibleyear in 2012. I, along with the Board of Directors, am so verygrateful for everyone who took noce and showed their support ofour mission to train new craspeople. We had another successfulannual giving campaign and would like to sincerely thank everyindividual and business that supported us:Alliance Safety CouncilBenne Builders, LLCBoh Bros. Construcon Co., LLCBrand Energy Soluons, LLCCajun Industries, LLCCORE, LLCMr. David RobertsDow Chemical FoundaonEXCEL Contractors, Inc.Greater Baton Rouge IndustryAlliance, Inc.Gulf Coast OccupaonalMedicine, Inc.Human Dynamics, Inc.Iberia BankIndustrial CoangsContractors, Inc.ISC Constructors, LLCJames Construcon Group, LLCMr. John WaltersLightning Bolt and Supply, Inc.Monioe Investments, LLCNewton B. Thomas Family/Newtron Group FundPala Interstate, LLCMs. Patricia AbadieP.B.C. Industrial Supplies, Inc.Performance Contractors, Inc.Petrin CorporaonPPG Industries FoundaonScaffolding Rental & EreconServices, LLCShaw Maintenance, Inc.Mr. Stephen GaffneyTotal Petrochemicals USA, Inc.Triad Electric & Controls, Inc.Westgate, LLCWestway Group, Inc.Whitney Naonal BankIn the coming months, we will implement the funds raised directly back into construcon training iniaves within Louisianacommunies. This will take place through a grant applicaon process throughout the year. As these projects areselected and regularly evaluated by the LCEF Board of Directors, we will keep the members of Associated Builders andContractors, Pelican Chapter, in addion to other Louisiana business leaders, informed of the impact they are makingfor our industry.As a recap, from the dollars raised in 2011, LCEF funded two community iniaves in 2012. The first was for providingequipment and refurbishing a welding lab for the Career Academy, where 30 high school students are receiving NCCERtraining on a daily basis. The second, funding for electrical lab equipment for the Central Community School System,which will begin impacng students this year. We look forward to updang you with the posive impacts on individualsas well as our industry that these programs are working toward.As we all begin a new year, I sincerely hope you and/or your company will consider becoming a part of our Foundaon.By supporng our mission, you are helping to improve the workforce, educaon system and individual career opportuni‐es of our state.The Louisiana Construcon Educaon Foundaon is an organizaon described by I.R.C. Secon 501(c)(3) as a non‐profitorganizaon that is exempt from federal income tax and to which contribuons are tax‐deducble. For more informaonon how you can get involved in 2013, please visit our website: hp://lcef.info. You may also contact the LCEFDirector, Ashley Bryant, at 225.753.2497.myprivateballot.comMerit Shop Message | February 201315

FEATURE: TAX UPDATERONNIE E. STAMPER, CPA, HANNIS T. BOURGEOIS, LLP16Merit Shop Message | February 2013TAX DEDUCTIONSCAN MAKE IT EASIER TO PRACTICEGREEN ENERGY MANAGEMENT“Going green” has becomethe mantra for many contractorsand building owners in the 21 stcentury. The challenge is to pracceenvironmental stewardship in a waythat’s also conducive to a healthyboom line.Fortunately, these two goals are notmutually exclusive. Contractors andbuilding owners can implementgreen energy management techniquesthat help protect the environment,increase energy efficiencyand reduce maintenance and opera‐onal costs — all at the same me.Even with the inial cash outlay required,the payback period is usuallyreasonable.A Tax Deduction forBoosting EnergyEfficiencyIn most commercial buildings, it’sthe lighng; heang, venlaon andair condioning (HVAC); and buildingenvelope that consume themost energy. Therefore, these arethe areas most building ownersfocus on first in order to increaseenergy efficiency.Improvements and upgrades tothese systems can drascally boostenergy efficiency, but they oenrequire a significant cash outlay. Tohelp incenvize building owners tofocus on energy efficiency, the federalgovernment passed the EnergyPolicy Act of 2005, which created anew tax deducon for the construc‐on of new high‐efficiency buildingsand energy‐efficient retrofits andupgrades to exisng buildings in theU.S.Known as the Secon 179D deduc‐on, this tax incenve can significantlyreduce the cost of incorporangenergy efficiency into theconstrucon of new buildings andmaking energy‐efficiency improvementsto exisng buildings. Buildingowners can deduct between $0.30and $1.80 per square foot during thefirst year aer new construcon ormaking energy‐efficient improvementsto the lighng, HVAC andbuilding envelope systems ofcommercial properes.Contractors generally are not eligiblefor the 179D deducon — it is limitedto building owners. However,design‐build contractors, engineersand architects can receive thededucon for work performed ongovernment buildings if they qualify.Here, the government enty wouldallocate all or a percentage of itsdeducon to the contractor, engineeror architect.Originally scheduled to expire a fewyears ago, Congress extended thistax break unl December 31, 2013.So there’s a lile more than a yearle to take advantage of this oenunderulizedbut potenally valuableincenve.The Nuts and Bolts ofSection 179DThe full Secon 179D deducon isavailable to owners of both new andexisng commercial buildings whoinstall building envelope, interiorlighng, HVAC and/or service hotwater systems that reduce totalbuilding power and energy costs by50 percent or more per year comparedto ASHRAE 90.1‐2001 minimumrequirements. This deducon allowsowners of these buildings to deductthe cost of the qualifying systems upto $1.80 per square foot. Note thatthe basis of the building must be reducedby the amount of the deduc‐on.In addion, building owners can receivea paral deducon if total powerand energy costs are reduced byless than 50 percent compared toASHRAE 90.1‐2001 minimum requirements.The paral deducon percentagesare as follows: Interior lighng systems — 25percent reducon HVAC and hot water systems —15 percent reducon Building envelope — 10 percentreduconIn these instances, building ownerscan deduct the cost of the qualifyingsystem up to $0.60 per square foot.The deducon is per component system,not for all three types of systemscombined, and all three types of systemsare not required in order to receivethe deducon.Only professionally licensed engineerscan perform the inspecon andtesng that are required to determinewhether a property qualifies for adeducon, whether paral or full.They will conduct a site visit and fieldinspecon and provide a final reportand cerficaon for the property thatyou can use to substanate yourdeducon.Note: If you performed qualifying energy‐efficiencyupgrades or retrofits inpast years but were not aware of the

179D deducon, you can claim thededucon going back to 2006 by filingIRS form 3115.Another Tax Break:The Section 199 DeductionAnother tax incenve that may benefitmany contractors, engineers andarchitects is the Secon 199 deduc‐on, also referred to as the DomescProducon Deducon (DPD). This isan oen‐overlooked deducon of upto 9 percent of net income (not toexceed taxable or adjusted grossincome or 50 percent of W‐2 wagespaid) for qualified manufacturing andother producon acvies that takeplace within the United States.Included among these produconacvies are the construcon andsubstanal renovaon (includingenergy efficiency improvements andupgrades) of residenal and commercialproperes, as well as engineeringand architectural services related toconstrucon projects. Construconservices that are cosmec in nature(like decoraon and painng) are notincluded.A wide range of different types ofbusinesses may be able to claim theSecon 199 deducon. These includecommercial and instuonal construconand building exterior contractors;providers of engineering andarchitectural services; residenal remodelers;and electrical, plumbing,and HVAC contractors.Note that engineering and architecturalservices must be performedwithin the United States for real propertyconstrucon projects that arealso in the U.S. in order to qualify forthe DPD. Consultaon, invesgaon,evaluaon, planning, design and supervisionof construcon would constuteeligible engineeringservices, while eligible architecturalservices would include these servicesas well as aesthec and structuraldesign.An IRS safe harbor rule states thatcontractors can take the Secon 199deducon as long as 20 percent ormore of the total project costs are theresult of direct labor and overheadincurred from U.S.‐based operaons.The formula for calculang the deduc‐on is as follows:Qualified Producon Acvies Income (QPAI)‐ Qualified Producon Acvies Expenses (QPAE)Qualified Producon Acvies Net Income (QPA)X9 percentDeducon Amount, Subject to Noted LimitaonsIt Can Be Simpleor ComplexDetermining QPAI and QPAE is fairlysimple for companies with only one lineof business — they are the amount ofgross income and total business expenses,respecvely. For companies withmulple lines of business, gross incomeand business expenses must be properlyallocated.This can get complicated, which causessome businesses to hesitate pursuingthe DPD. But with the full and permanentdeducon amount of 9 percentnow in effect (the deducon amountwas phased in between 2005‐2010), itmakes sense for most businesses thatcould qualify (like those noted above) tocompare the potenal cost of makingthe determinaon with the savings,which could be substanal.Be sure to contact your CPA for moreguidance with regard to the Secon179D and Secon 199 deducons. He orshe can provide valuable assistance inhelping your business obtain maximumbenefit from both of these taxincenves.Ronnie Stamper is a CPA and audit partner withHannis T. Bourgeois, LLP, Cerfied Public Accountants.He is in charge of the HTB construcon nicheand has over 35 years of experience in publicaccounng. He can be reached at rstamper@htbcpa.comor (225) 928-4770.July 24-27, 2013San Destin HiltonMerit Shop Message | February 201317 5

REGIONAL UPDATE: SOUTHWEST TRAINING CENTERKIRBY BRUCHHAUS, SW DIRECTOR OF EDUCATION & TRAININGThe ABC Southwest Training Center beganclasses on January 7, 2013. We have classesin Electrical, Instrumentaon, Pipefing,Millwright, Mobile Crane, Heavy Equipment,and Welding. We have evening classes Mondaythrough Thursday. We also have anaernoon Welding class that high schoolseniors are parcipang in through our local highschools.The students that are parcipang in our evening classesare a mixture of high school students 16 years of ageand up from our five parish area, students that are justout of school trying to get a job in the Industry, andmost of our students are people who are working towardscerficaon while on the job. These students aremostly people who have enrolled in ABC and werepicked up by our contractors to start work as helpers intheir chosen field.This year is going to be a very challenging me here atABC. It is also the beginning of new work all over theSouthern part of the United States. With all the newprojects that are geng ready to start, there is going tobe an abundance of work opportunies in our area. Weare looking at several new ways to approach the trainingthat will be needed in our area: accelerated daytraining, satellite training at different onsite plants, andsites in area parishes to accommodate students thataend high school classes all day, but would like to getcra training at night. We are also trying to help studentsthat are working and would like to get a beer job. Theseare the things that we have to do to accommodate thelocal community to try to support our local workforce.We are in the last process of our Naonal AccreditaonCerficaon. We hope we can complete this process andpass accreditaon by August of 2013. This will open manydoors to new students to aend and acknowledge ourtraining center as a professional instuon.There is also a new State Program called Course Choicethat ABC has been approved as a provider to high schoolstudents that want to take classes that their high schooldoes not offer. This is also set to get started by the Fall of2013.We ancipate a very busy and rewarding new year at ABCthat will affect our future and give a lot of young peoplean opportunity to train and become producve cizens inour society.18Merit Shop Message | February 2013

Merit Shop Message | February 201317

FEATURE: LEGAL UPDATEKINCHEN???, Breazeale, Sachse & Wilson, LLPAMERICAN TAX RELIEFOn January 1, 2013, the Senate and theHouse passed the American Taxpayer ReliefAct of 2012 (“Act”). The President signedthe Act into law on January 2, 2013. Finalpassage of the Act prevented tax increases to mostAmericans that would have gone into effect automacallyupon the expiraon of the so‐called “Bush TaxCuts” on December 31, 2012, as well as massive spendingcuts required by the sequestraon process. The Actaccomplishes this in part by making “permanent” thetax relief, for certain taxpayers, provided in TheEconomic Growth and Tax Relief Reconciliaon Act of2001 (“EGTRRA”) and The Jobs and Growth Tax ReliefReconciliaon Act of 2003 (“JGTRRA”) The following aresome of the key provisions of the Act:Income Tax Rates. Upon the expiraon of the Bush TaxCuts, the income tax brackets for individuals werescheduled to increase from 10%, 15%, 25%, 28%, 33%ACT OF 2012and 35% to 15%, 28%, 31%, 36% and 39.6% on January 1,2013. The Act maintains the lower rates, but adds a new39.6% bracket for taxable income (not adjusted grossincome) in excess of the “applicable threshold.” The applicablethreshold is $450,000 for joint filers and survivingspouses, and $400,000 for single filers. These dollaramounts are adjusted for inflaon for tax years aer2013.Capital Gain and Dividend Rates. For tax years beginningaer 2012, the top rate for capital gains anddividends will rise from 15% to 20% for taxpayers withtaxable income (not adjusted gross income) exceedingthe applicable threshold amounts listed above. For taxpayerswith ordinary income taxed at a rate below 25%,capital gains and dividends will be taxed at a 0% rate.Taxpayers who are subject to a 25% or greater rate onordinary income but whose income levels fall below theapplicable threshold amounts will connue to be subjectto a 15% rate on capital gains and dividends.Personal Exempon Limitaons. The Act phases out personalexempons for certain high income taxpayers. Fortax years beginning in 2013, the total amount of personalexempons that can be claimed by a taxpayer subject tothe limitaon is reduced by 2% for each $2,500 (orporon thereof) by which the taxpayer’s adjusted grossincome exceeds the applicable threshold. These dollaramounts are adjusted for inflaon for tax years aer2013. The applicable threshold for the personal exemp‐on phase out starts for those making $300,000 for jointfilers and $250,000 for single filers.Itemized Deducon Limitaons. The Act phases outitemized deducons for certain high income taxpayers.For tax years beginning in 2013, the total amount of theiritemized deducons is reduced by 3% of the amount bywhich the taxpayer’s adjusted gross income exceeds thethreshold amount, with the reducon not to exceed 80%of the otherwise allowable itemized deducons. Thesedollar amounts are adjusted for inflaon for tax yearsaer 2013. The applicable threshold for the itemized deduconphase out starts for those making $300,000 forjoint filers and $250,000 for single filers.20Merit Shop Message | February 2013Estate and Gi Taxes. The applicable exclusion amountwas scheduled to be significantly reduced from$5,000,000 in 2012 to $1,000,000 in 2013 if the Bush Tax

Cuts were allowed to expire. The maximum estate taxrate would have also automacally increased from 35% in2012 to 55% in 2013. The Act keeps the applicable exclusionamount at $5,000,000 for estates and gi in 2013 (asindexed for inflaon thereaer). The Act increases the topestate and gi tax rate to 40%. The Act also connues theconcept of portability that allows the estate of the firstspouse to die to transfer his or her unused exclusionamount to the surviving spouse.AMT Relief. Without the Act, the alternave minimum tax(“AMT”) was expected to affect many taxpayers in 2012and thereaer. AMT is the excess, if any, of the tentaveminimum tax for the year over the regular tax for theyear. Prior to the Act, the individual AMT exemponamounts for 2012 were scheduled to be $33,750 for singlefilers and $45,000 for joint filers. Retroacvely for taxyears beginning aer 2011, the Act increases these exemponamounts to $50,600 for single filers and $78,750for joint filers. For tax years beginning aer 2012, the Actindexes these exempon amounts for inflaon.Extension of Increased 179 Deducon and 50% BonusDepreciaon. The following depreciaon provisions areretroacvely extended by the Act through 2013: (1) 50%federal bonus depreciaon; (2) 15‐year straight line costrecovery for qualified leasehold improvements, qualifiedrestaurant buildings and improvements, and qualified retailimprovements; and (3) $500,000 of increased expensinglimitaons and treatment of certain real property asCode 179 property.Miscellaneous Provisions. The Act also extended numerousother miscellaneous deducons and tax credits. For example,the New Markets Tax Credit and the Work Opportunity TaxCredit were retroacvely extended for two years through2013.In summary, the Act keeps income and capital gains rates thesame for most taxpayers with taxable income below the applicablethreshold amounts. However, most taxpayers will sllsee an increase in their overall taxes in 2013 as a result of theexpiraon of the payroll tax cut of 2% that was in place in2011 and 2012, as well as the addional 3.8% tax on certaininvestment income imposed by the Affordable Care Act beginningin 2013. There will also be a new 0.9% addional Medicaretax beginning in 2013 on wages and self‐employmentincome exceeding $250,000 for joint filers and $200,000 forsingle filers. Finally, although the Act labels these tax lawchanges as “permanent,” Congress may not be finished makingchanges to the Internal Revenue Code in 2013. The Actpostpones unl March 1, 2013, the massive spending cutsthat will automacally go into effect under the sequestraonprocess. Some Congressmen have already hinted that furthertax increases on “wealthy” taxpayers may sll be needed.Whether this is accomplished by further tax increases or furtherphase‐outs or reducons of certain deducons is le tobe seen. Stay tuned. As always, please consult your CPA ortax advisor on how the Act’s provisions affect your parculartax return.Merit Shop Message | February 201321

FEATURE: NEED FOR LONG TERM FLEET MANAGEMENT STRATEGYJAY DE LA HOUSSAYE, ENTERPRISE FLEET MANAGEMENTBetter Fuel Eficiency, Lower Interest Rates &Higher Resale Market Drive Need forLong‐Term Fleet Management StrategyAny business with a fleet of vehicles knows there are sixmajor cost elements: depreciaon, interest, fuel,maintenance, risk management and taxes. Not surprisingly,the ever‐increasing cost of fuel is beginning to rival some ofthose cost elements, including depreciaon, and less fuelefficientolder vehicles are the least cost‐effecve.The good news is that there has never been a beer meto begin to manage fuel expenses. Not only are 2013model year vehicles designed for maximum fuel efficiency,but record low interest rates and an unusually high resalemarket for used vehicles present an exceponalopportunity for businesses with medium‐size fleets to takeadvantage of the opportunity to lower expenses.But, without a long‐term fleet management strategy, geng the most value could sll be achallenge. A long‐term strategy can help project financial targets for three, four and five‐yearsdown the road on everything from acquiring and disposing of vehicles to managing maintenance,risk management, warranes, and mileage, as well as the potenal wear and tear a business willinflict on each of its vehicles.A good place to start is to work with a professional fleet management company that has access toa wide range of makes and models of cars, light‐ and medium‐duty trucks and service vehicles andhas the ability and experience to idenfy the right vehicles and available opons to meet theindividual needs of a parcular business. In addion, they may have the ability to forecast andanalyze long‐term cost structures to help the business hit specific financial targets.Because a fleet of vehicles can represent a major cost, requiring a considerable amount of moneyup front and demanding a connuing amount of money, me and resources to manage, businessesthat have a long‐term strategy will do well. Fuel is a good example. Combined with inflaon,reduced fuel efficiency could lead to as much as a 50 percent increase in annual fuel costs withinthe next three to four years. This means that for a business just to maintain its current fuel budgetit could ulmately be necessary to get the equivalent of 16 mpg from a vehicle that currently gets13 mpg.Jay de la Houssaye,Area Sales Managerfor Enterprise FleetManagement/Louisiana,can be reached at504‐779‐3321.Serving the enreSouth Central Louisianaarea, de la Houssaye issupported by an experiencedteam of veteranmechanics andAccredited AutomoveService Excellence (ASE)technicians to servethe fleet maintenanceneeds of businesseswith mid‐size fleets.In addion to maintenancemanagementprograms, Enterprise’sservices include vehicleacquision, fuel managementand insuranceprograms, as well asvehicle registraon,reporng andremarkeng.Visit the company’swebsite atwww.efleets.comor call toll free1‐877‐23‐FLEET.For moreinformaon aboutEnterprise’s industryleadingenvironmentalstewardshipiniaves, visit hp://fleet.keystogreen.com.Today’s fuel reality is a growing concern for businesses thatown and operate fleets of vehicles. Not only can owningand operang a fleet of vehicles efficiently and costeffecvelytranslate to beer customer service, it can leadto a more profitable boom line and more sasfiedemployees. The combinaon of new increasing regulaonson vehicle manufacturers to improve fuel economy andsteadily escalang fuel prices makes it imperave forbusinesses to begin now to beer manage fuel costs fortheir fleet of vehicles.22Merit Shop Message | February 2013

MARK YOUR CALENDARSFebruary 20135 11:30 AM ‐ 1:30 PM ABC Taskforce5 11:30 AM ‐ 1:00 PM Southwest Safety, Lake Charles ABC Office6 8:00 AM ‐ 10:00 AM Membership Development, Admin. Office Board Room6 11:30 AM ‐ 1:30 PM State Convenon Commiee Meeng, Bayou Chapter Office7 7:30 AM ‐ 9:30 AM Baton Rouge Safety Commiee, Baton Rouge Training Center7 11:30 AM ‐ 1:00 PM SLCUC Coordinang Commiee, Lake Charles Safety Council11 7:30 AM ‐ 9:00 AM Staff Meeng, Admin. Office Board Room12 11:30 AM ‐ 1:00 PM Southwest Steering Commiee, Lake Charles ABC Office13 8:00 AM ‐ 9:00 AM Membership Growth & Development Commiee Meeng, Admin.Office Board Room14 11:30 AM ‐ 1:00 PM Southwest Training Commiee, Lake Charles ABC Office14 2:00 PM ‐ 3:30 PM Educaon & Manpower, Baton Rouge Training Center19‐20 ABC Naonal BizCon, Marrio Harbor Beach Resort & Spa, Ft.Lauderdale19 ABC Naonal Execuve Commiee Meeng, Marrio Harbor BeachResort & Spa, Fr. Lauderdale19 4:00 PM ‐ 5:00 PM Budget & Finance Commiee Meeng, Admin. Office Board Room20 7:45 AM ‐ 8:45 AM P & E Commiee Meeng, Admin. Office Board Room21 ABC Naonal Board Meeng, Marrio Harbor Beach Resort & Spa,Ft. Lauderdale21 7:30 AM ‐ 9:00 AM GBRIA Board & ICC Steering, GBRIA Office21 8:00 AM ‐ 3:00 PM ABC Pelican Cra Compeon, Admin. Office Board Room22 6:00 PM ACCE Dinner, City Club25 10:00 AM ‐ 12:00 PM LCEF Board of Directors Meeng, Admin. Office Board Room25 12:00 PM ‐ 1:30 PM ICC Steering Commiee, Admin. Office Board Room26‐28 United Blood Services, Training Center26 2:00 PM ‐ 3:30 PM Execuve Commiee Meeng, Admin. Office Board Room26 3:30 PM ‐ 5:00 PM Board of Directors Meeng, Admin. Office Board Room27 3:30 PM ‐ 5:00 PM State Board of Directors Meeng, Admin. Office Board RoomMarch 20135 11:30 AM ‐ 1:00 PM Southwest Safety, Lake Charles ABC Office5 6:00 PM ‐ 9:00 PM GBRIA Safety Awards Banquet, L’Auberge Casino Hotel, Baton Rouge6 8:00 AM ‐ 10:00 AM Membership Development, Admin. Office Board Room7 7:30 AM ‐ 9:30 AM Baton Rouge Safety Commiee, Baton Rouge Training Center7 11:30 AM ‐ 1:00 PM SLCUC Coordinang Commiee, Lake Charles Safety Council7 6:00 PM ‐ 9:00 PM GBRIA Contractor Safety Awards Banquet, Crowne Plaza Hotel,Baton Rouge11 7:30 AM ‐ 9:00 AM Staff Meeng, Admin. Office Board Room12 9:30 AM ‐ 12:00 PM Louisiana Workforce Investment Council, Execuve CommieeMeeng, Admin. Office Board Room12 11:30 AM ‐ 1:00 PM Southwest Steering Commiee, Lake Charles ABC Office13 8:00 AM ‐ 9:00 AM Membership Growth & Development Commiee Meeng, Admin.Office Board Room14 11:30 AM ‐ 1:00 PM Southwest Training Commiee, Lake Charles ABC Office14 2:00 PM ‐ 3:30 PM Educaon & Manpower, Baton Rouge Training Center15 ABC Spring Golf Tournament19 4:00 PM ‐ 5:00 PM Budget & Finance Commiee Meeng, Admin. Office Board Room20 7:45 AM ‐ 8:45 AM P & E Commiee Meeng, Admin. Office Board Room25 10:00 AM ‐ 12:00 PM LCEF Board of Directors Meeng, Admin. Office Board Room25 12:00 PM ‐ 1:30 PM ICC Steering Commiee, Admin. Office Board Room26 2:00 PM ‐ 3:30 PM Execuve Commiee Meeng, Admin. Office Board Room26 3:30 PM ‐ 5:00 PM Board of Directors Meeng, Admin. Office Board RoomPelicanChapterB R SOffice (225) 752‐1415Fax (225) 751‐9470Training Center (225) 752‐0088PAlvin Bargas 753‐2590D AMelanie Searles 615‐8741D FJanie Arceneaux 615‐8742V P G RJohn Walters 752‐0092D M SCaitlin Boé Stolzenthaler753‐2498D MGAnna Zebeau 753‐2541D E TRobert Clouatre 615‐8743D WDMahew Campbell 448‐3338D TAKelly Carpenter 448‐3336D DAshley Bryant 753‐2497T C AKacie Blanchard 448‐3345Whitney Wheeler 753‐2593A ATammy Charbonnet 753‐5096Dawn Blanchard 753‐2596L C SOffice (337) 882‐0204Fax (337) 882‐6757D E TKirby BruchhausA SMona Jarrell & Doris SneF MRay HarrisMerit Shop Message | February 201323