Construction industry economists remind builders that federal funds are flowing along to state and local authorities, making publicly financed projects the place for builders to be. Read on for an overview of public funding that could be on its way to you.
Mining The Opportunities
As 2022 came to a close, Construction Dive reported that the $1.2 trillion from the Infrastructure Act was “starting to hit government agencies,” while an additional $739 billion from the Inflation Reduction Act, along with $52 billion from the CHIPS Act also begin trickling down to the state and local levels. As Anirban Basu, chief economist for ABC summed up: “State and local governments are flush with cash, and considerable funding is slated for various forms of infrastructure.” With public building widely anticipated to be a bright spot in a cooling economy, Erin Roberts, a global engineering and construction leader at EY, stresses: “To combat economic challenges, the industry must leverage innovation and the recent three landmark pieces of U.S. legislation to mine the opportunities, while maintaining a healthy cautiousness as economic downturn looms.”
Read here for tips and links that will help you “follow the money” from the Infrastructure Investment and Jobs Act (IIJA) locally. Meanwhile, For Construction Pros shares these insights about what the Inflation Reduction Act means for builders:
This bill sets to fight inflation while investing in domestic energy production and manufacturing and reducing carbon emissions by 40% by 2030. The new proposal will invest approximately $300 billion in deficit reduction and $369 billion in energy security and climate change programs over the next 10 years, including, but not limited to:
- Consumer tax credits and rebate programs for energy-efficient homes and clean energy products
- Investment tax credits to build clean technology manufacturing facilities
- Loans to build new clean vehicle manufacturing facilities
- Grant and loan programs for clean electricity
- Clean energy initiative accelerator to support technologies that reduce emissions
- Climate-smart agriculture practices
- Tax credits and grants to support the domestic production of biofuels and infrastructure for sustainable aviation fuel
As you scan your local radar for public projects getting built in your region, don’t forget to tune into the flow of funds also coming via 2022s’ Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act (aka the CHIPS Act). For instance, Pros point out:
Since enactment, major chip manufacturers have announced significant spending plans for U.S. investment. The CHIPS and Science Act is expected to directly benefit semiconductor chip manufacturing companies and their suppliers looking to invest in greenfield manufacturing plants, or modernization of existing ones. For example, a large semiconductor manufacturer announced plans for a $100 billion investment in a giga-factory in upstate New York. CHIPS is also expected to have a secondary halo effect in the broader ecosystem through migration of supply chains to the US.
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