The White House announced Wednesday President Joe Biden will sign the $52 billion CHIPS Act, which subsidizes the semiconductor industry and provides a 25% tax credit for companies that build facilities in the U.S., on August 9.
The COVID-19 pandemic has significantly impacted the construction industry, which is sensitive to economic cycles. But thanks to its potential to create jobs, recovery in the construction industry will also fuel the recovery of the American economy as a whole.
The COVID-19 pandemic has shown no mercy in its impact on the construction sector, inducing a storm of high costs and volatility from materials to labor. According to a recent survey by the Associated General Contractors of America and Autodesk, 93% of contractors have been impacted by the supply chain disruption-induced rising material prices, and 88% are experiencing project delays.
For construction and engineering professionals, it’s a happy day. The realities of American politics have not seen much partisan agreement, but Congress managed to agree on something recently: If your work relates to energy-saving design and engineering, then your business may be entitled to a very lucrative tax deduction.
For anyone who has relocated to a new office building or high-rise apartment, one of the most frustrating experiences is lugging furniture up flights of stairs only to discover a hidden freight elevator the moment after setting down the last box. For architecture, construction, design and engineering firms, the 179D tax deduction is just like that elevator, an easily accessible means of improving business by utilizing work already underway.