AGC of America Announces Economic Recovery Plan
In response to the extremely difficult economic conditions facing the industry AGC of America developed a comprehensive recovery plan for construction. “Build Now for the Future: A Blueprint for Economic Change” outlines commonsense incentives tax credits and policy changes designed to stimulate new private- and public-sector demand for construction. Recommendations include: Establish a national infrastructure bank; avoid government-mandated project labor agreements; and allow public/private investment programs to finance sound construction projects.
AGC of America will work with local chapters to promote the plan to Members of Congress. See below for a summary of all the plan’s recommendations.
Quick Facts about AGC’s Plan to Rebuild the Construction Industry
• America may be in a recession but the construction industry is suffering a depression.
o Construction unemployment is 16.5 percent nearly double the national average.
o More than 1 million construction workers are unemployed.
o Construction spending may decline by $193 billion in 2009 an 18 percent drop.
o At 8 percent of GDP construction’s pains hurt the broader U.S. economy.
• Addressing the construction crisis will boost our economy now and for decades to come.
o Rebuilding the construction industry will boost job creation and economic growth.
o Construction and infrastructure investments enhance our ability to compete globally.
o Construction investments help improve public health and protect the environment.
• Rebuild private construction that accounts for 70 percent of construction activity.
o Expand net operating loss carry back repeal the alternative minimum tax increase tax credits for energy efficiency and extend tax cuts (including the ‘01 & ‘03 tax cuts) to preserve private capital create jobs boost investments in real estate and other facilities.
o Eliminate disincentives on global investments in U.S. commercial real estate restore “Fast Track” trade promotion authority and remove trade barriers that inflate costs.
o Extend Term Asset Backed Securities Loan Facility allow public private investment programs to fund construction projects and extend the first-time home buyers credit.
• Boost investments in infrastructure to provide industry stability economic efficiency.
o Double federal investments in transportation programs begin transition to vehicle miles tax right-size federal gas tax and encourage public-private partnerships.
o Boost investments in federal buildings clean water programs flood control and inland waterway navigation and establish a national infrastructure bank.
o Expand and make permanent the Build America Bonds program and exempt construction from the private activity bond cap.
• Revise restrictive policies and regulations to speed construction ease costly delays.
o Streamline environmental reviews accelerate licensing of new nuclear power plants and establish a federal multiyear capital budget for public works.
o Reject the Clean Water Restoration Act encourage green construction avoid government mandated labor agreements and rescind Buy American requirements.
The Cost vs. Return on Investment
• Boosting economic activity will raise tax revenue and offset some of the tax credit costs.
• Raising and modernizing user fees establishing a Water Trust Fund and expanding public private partnerships will raise revenue for infrastructure investments.
• The cost of inaction will be far greater than anything outlined in this plan.
For more information about A Blueprint for Economic Growth visit www.agc.org or call (703) 837-5310.