On February 17, 2009 the $787 Billion American Recovery and Reinvestment Act of 2009 was signed into law. At first glance, the part of this budget that appears to most directly affect the building industry would be "Infrastructure." However, in several instances, there is overlap.
For instance, in a section of the bill entitled, "Aid to Individuals," there is an increase in financing for low-income families to make their homes more energy-efficient. Projects like installing insulation and replacing old appliances and furnaces could mean additional jobs for building professionals.
There's also $14.4 Billion in Tax Cuts for Businesses that extend the production tax credit for wind energy facilities through 2012 as well as other renewable energy facilities through 2013.
Most relevant to the building/construction industry, however, is the $8,000 federal tax credit extended to first-time home buyers who purchase homes this year. "Stimulated" by this stimulus, many states are adding their own consumer incentives to help the recovery along. And even though the Recovery and Reinvestment Act is just getting started, we already are seeing an increase in new US home construction projects. In addition, permits for new home building unexpectedly rose 3% in February, up from a 50-year low. Housing starts soared 22.2% after seven months of a downslide.
So, after a year of tremendous uncertainty, there are signs of recovery. That means the building industry needs to get back to business.
Where Do We Go From Here?
Building professionals across the country should be re-assessing their business plans and projections, reviving their marketing efforts, and shoring up their materials and resources to remain competitive. In addition, they will need to be on top of the latest in business references and building codes to prepare for an uptick in construction.
CBE has available the most up-to-date codes and reference materials – essential tools of the trade for every building professional. |
