AWI e-briefs - 12/17/2009 (Plain Text Version)

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Obama Administration Includes Business-Friendly Tax Reforms & Infrastructure Investment in Jobs Recovery Plan

The American Subcontractors Association (ASA) is recommending specific actions that will "responsibly encourage and accelerate the creation of jobs in the construction industry." As follow-up to President Obama’s job recovery plan announced on December 8, 2009. ASA's recommendations included...

* Make Permanent Small Business Expensing. While short of ASA’s goal of permanent, heightened small business expensing, the president’s proposal to extend this tax deduction would allow subcontractors to immediately write off up to $250,000 of qualified investments such as construction equipment, through 2010. 

* Extend Bonus Deprecation Through 2011. The president called for an extension of this tax provision that accelerates the rate at which businesses can deduct the cost of capital expenditures such as leasehold improvements. ASA urged an extension of this program through 2011. 

* Increase Infrastructure Investment. The president proposed new investments in infrastructure projects that include water, aviation, highway, transit and rail. ASA also recommended investments to expedite the repair and maintenance of federal government buildings.

* Increase Energy-Efficiency Tax Deduction. The president supports expanding the tax incentives for investing in renewable manufacturing facilities. ASA also recommended an increase from $1.80 to $3.00 per square foot in the current tax deduction for installing energy-efficient systems in commercial buildings. 

* Extend the Term Asset Backed Securities Loan Facility Program. The president called for "continued Treasury efforts to use the TARP to support small business lending." Extending TALF would provide financing to encourage investors to re-enter the commercial construction market.

As Congress debates the president’s jobs recovery plan, ASA will urge legislators to adopt these and other reforms recommended by ASA, such as making permanent the federal Build America Bonds program and the Qualified School Construction Bonds program. Contact ASA at for more information.  [Return to top]