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The 299th Engineer Battalion was inactivated on 15 December 2004, in support of the Army's transition to modular brigades. As part of the modular transformation, assets previously held at division level, but habitually attached to a division's brigades during operations were made organic to those brigades. Elements of the inactivated Battalion were filtered into the the Special Troops Battalion, 1st Brigade Combat Team, 4th Infantry Division.
The 299th Engineer Battalion had been organized with an Headquarters and Headquarters Company and 3 multifunctional companies. The engineer force featured modularity and versatility. It was habitually attached to the 1st Brigade, 4th Infantry Division (Mechanized) during operations. The 2 line companies had 3 multifunctional platoons. The maneuver support company had 2 engineer platoons and an assault platoon. Within the Headquarters and Headquarters Company were the staff and CPs, support platoon, maintenance platoon, and a HMMWV-equipped recon section that normally operated with the 1st Brigade's reconnaissance troop.
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