With the passage of the Three Percent Withholding Repeal and Job Creation Act
), the requirement for federal, state and local governments to withhold three percent on payments made to government contractors, as well as certain other payments such as Medicare, has been repealed. The requirement was part of the 2005 Tax Increase Prevention and Reconciliation Act. Under TIPRA, government withholding initially had been scheduled to apply to payments made after December 31, 2010. With the passage of H.R. 674, government withholding is repealed as if it had never been enacted.