On Sept. 13, House Democrats released legislative text detailing significant tax increases to pay for their upwards of $3.5 trillion human infrastructure bill. Those tax increases include but are not limited to: (1) increasing the top rate to 26.5% from 21% for corporations with incomes of $5 million; (2) creating a new 3% surtax on individuals/pass-through businesses with modified adjusted gross income exceeding $5 million; (3) increasing the top tax rate for pass-through businesses to 46.4 percent (39.6 percent top individual tax bracket + 3.8 percent net investment income tax (NIIT) + 3 percent surtax); (4) increasing the top capital gains rate to 31.8 percent (25 percent statutory rate + 3.8 percent NIIT + 3 percent surtax); and (5) capping the maximum Section 199A qualified business income deduction for high income individuals. The proposal also includes registered apprenticeship requirements, among other things, for entities to receive certain construction development tax incentives largely used in private construction markets. AGC opposes these proposals and will fight their enactment, as they would hinder economic recovery and growth.
Rep. Anthony Brown (D-Md.) Joins AGC for Tour
Every State will See Benefits from this Historic Level of Investment
On August 24, the Federal Aviation Administration announced the award of $766 million in airport infrastructure grants to 279 airports as part of the Airport Improvement Program (AIP). The AIP grant program awards billions of dollars each year for the planning and development of public-use airports across the country. As part of the AGC-supported fiscal year 2021 funding bill, the program received $3.75 billion in federal funding, $400M more than is authorized by the FAA Reauthorization Act. AGC applauds this funding announcement and will continue to support investment in our nation’s airport infrastructure. Click “learn more” to view the announcement and look at an interactive map of the projects awarded.
Please take a moment to participate in this important 811 Safety and Utility Damage Prevention Process Survey. Survey DEADLINE September 10. This survey is intended to document the experience in the 811 process of contractors that work on water/wastewater, highway heavy, building, telecom, and energy infrastructure projects. “As local, state and federal entities address issues, laws, and regulations associated with the 811 process, this survey will be an invaluable tool in helping to accurately convey the construction industry’s story in the process,” states Randy Douglas, AGC’s Utility Infrastructure Division Chair and President of Tierra Contracting, Inc., Santa Barbara, CA, “I encourage everyone to take it and share with your project managers, foreman, superintendents and fellow contractors.”
Set a Non-Binding Sept. 27 Deadline; Highway & Transit Programs Expire Sept. 30
Negotiations Underway to Determine What is Actually Included in the Bill
The survey will close on September 10
On Aug. 4, AGC of America’s Federal & Heavy Construction Division participated at the U.S. Army Corps of Engineers’ Executive Governance Meeting, which gathers Army Corps commanders from across the agency. AGC and the Army Corps discussed solutions to the challenges facing our nation’s infrastructure, and how the Army Corps can better partner with the construction industry. AGC emphasized the strain contractors are facing with construction materials at record high prices and the continued availability challenges. AGC urged Commanders to partner with AGC Chapters and member contractors back in their district offices, and also provided government guidance encouraging such meetings.
On Aug. 10, the Senate passed, 69-30, the Infrastructure Investment and Jobs Act, a historic, $1.2 trillion infrastructure package investing in all components of the nation’s physical infrastructure. AGC endorsed this legislation because it reauthorizes the nation’s federal-aid highway and transit programs for five years at record funding levels, includes significant environmental permitting streamlining provisions, and provides a host of other investments for a wide array construction projects without raising taxes on construction firms and without including any new, significant workforce mandates, like the PRO Act or government-mandated project labor agreements. A full AGC analysis of the bill can be found here. Additionally, a breakdown of what’s in the bill for each construction market can be found here:Highway Contractors; Utility Contractors; Direct Federal Contractors; Building Contractors ; and Other Markets (Transit, Rail, Waterways, Airports).