President Joe Biden offered a series of concessions to Senate Republicans this week, the White House said, as he negotiates the approval of his $ 1 trillion infrastructure deal, a plan that would have huge implications for the real estate industry.
In a meeting in the Oval Office, Biden proposed that a new corporate version of the alternative minimum tax, set at 15 percent, be imposed instead of raising corporate tax rates to 28 percent from 21 percent to pay the package. Washington Post reported. The original funding plan was rejected by Republicans, who oppose the repeal of former President Donald Trump’s 2017 tax cuts.
White House press secretary Jen Psaki later added that raising the corporate tax rate above 21 percent remains a goal for the administration.
The infrastructure plan would initially cost $ 2.3 trillion, but that price has been slowly cut in negotiations. Still, the amount of spending required, as well as potential tax increases, will pose obstacles for the Biden administration in approving the deal.
The infrastructure plan was introduced shortly after the approval of the $ 1.9 trillion stimulus package. The infrastructure deal is part of Biden’s long-term economic agenda, which can ultimately cost $ 3 trillion.
But how much money would Biden get for his money? Although many things may change as the negotiation continues, here are five noteworthy proposed provisions for the real estate industry:
Well … Infrastructure, obviously
The plan aims to repair and replace damaged infrastructure across the country. It would modernize 20,000 miles of highways, roads, and major streets and repair the 10 most economically important bridges, along with 10,000 smaller bridges in the worst condition. It would also replace thousands of buses and railcars, repair hundreds of train stations, renovate airports, and expand transit to new communities.
Public and affordable housing
Under the proposal, more than one million affordable housing units would be built or modernized. The public housing units would also receive funds for necessary repairs. Energy efficiency would be a component of new and improved housing options.
Middle Income Housing and Zoning
In addition to public and affordable housing, more than 500,000 homes would be built or rehabilitated for low- and middle-income home buyers. The Biden administration would do so by offering Neighborhood Housing Investment Act tax credits for the next five years.
Biden also seeks to eliminate exclusionary zoning laws, such as minimum lot sizes, mandatory parking requirements, and multi-family housing bans. To do so, Biden proposes a grant program that provides funding to jurisdictions that remove such barriers.
Other buildings to be constructed or renovated include public schools, community colleges, child care facilities, Veterans Affairs hospitals, and federal buildings. The focus will be on communities that lack such centers.