Measure’s Modest Amount of Funding for Infrastructure Projects and Clarification that PPP Loans May Not be Taxed Will Help Offset Some of the Challenges Facing the Construction Industry
The Associated General Contractors of America’s chief executive officer, Stephen E. Sandherr, issued the following statement in reaction to the release of compromise coronavirus relief legislation slated for House and Senate votes as early as today:
“The new coronavirus recovery measure announced today should provide some needed relief for a construction industry that is coping with project cancellations and job losses in most parts of the country. Most notably, the measure includes $10 billion in needed funding to help address the pandemic-induced shortfalls in state transportation revenues. This new funding should keep a number of road projects from getting canceled or delayed over the coming months. The measure also includes new funding for waterways, ports and other maritime facilities.
“Most important, the measure reaffirms the original Congressional intent that employers that used Paycheck Protection Program loans to save jobs will not be forced to pay more taxes next year as a result. Given that demand for many types of commercial construction projects is likely to remain soft in 2021, the administration’s plan to tax firms for their forgiven loan amount would have cost many construction jobs. Instead, the new recovery measure will preserve many of the original benefits of the Paycheck Protection Program, something our association has worked aggressively to ensure.
“We urge members of the House and Senate to approve this measure as quickly as possible and expect the President to rapidly sign it into law. If enacted, the new measure will provide a long-awaited bit of good news for a construction industry, and economy, that has faced far too many challenges this year.”
CONTACT: Brian Turmail