Building Bridges From Biden’s American Jobs Plan to the R&D Tax CreditOctober 1, 2021Practical Taxation
Architecture, Engineering, and Construction (AEC) companies may have scored a major win in more ways than one with the introduction of President Biden’s long-awaited $2.25 trillion American Jobs Plan spending proposal.
The plan aims to create more jobs, improve infrastructure, and position the United States to be continually competitive in the modern world.
The proposal lays out a budget that includes approximately $1 trillion for infrastructure including, transportation infrastructure, building and utilities, worker training, research and development, and domestic manufacturing initiatives. This represents a huge investment into activities such as improving transportation infrastructure, making U.S. infrastructure more resilient to withstand climate disasters, building commercial homes and commercial buildings, and using more sustainable and innovative materials, including cleaner steel and cement, and component parts. This plan could result in significant contracts for AEC companies.
Additionally, tackling these lofty goals and infrastructure challenges may involve AEC companies designing, developing, and uncovering new solutions that could qualify for the research and development (R&D) tax credit.