You may have heard about the changes to the completed contract method under the One Big Beautiful Bill Act—but what do these changes mean for contractors?

The completed contract method (CCM) is an accounting method that enables construction companies to defer the recognition of income and expenses until a project is complete, allowing qualifying contractors to delay paying taxes on that income to a later year. In the past, this method of accounting was only available for smaller residential projects and contractors. However, due to changes to the tax law under the One Big Beautiful Bill Act, larger residential projects and contractors now also qualify for CCM. Here’s what you should know.

Methods of Accounting for Construction Projects

For some background, let’s take a look at the different methods of accounting used in construction. There are several methods, each with its own tax implications.

1. Cash Basis Accounting: revenue is recognized at the time it is received, and expenses are recognized when they are paid.
2. Accrual Basis Accounting: revenue is recognized as it is earned, and expenses are recognized when they are incurred.
3. Percentage of Completion Method (POC): revenue and expenses are recognized based on the percentage of work completed during a certain period.
4. Completed Contract Method (CCM): revenue and expenses are recognized only when a project is fully completed.

How have the CCM rules changed?

In short, the new tax law significantly expands allowable use of the completed contract method (CCM) for residential construction projects, opening this method up to more projects and contractors.

Prior to the OBBBA, the completed contract method was only available for small contractors and home construction contracts, applying to projects with four or fewer dwelling units. However, the OBBBA replaces the term “home construction contracts” in IRS Section 460 with the term “residential construction contracts.” This revision expands eligibility for the CCM to any residential construction contract where at least 80% of the costs relate to residential projects, regardless of the number of units or contractor size. As a result, larger projects containing more than four dwelling units—such as apartment buildings, condominium complexes, and residential care facilities—now also qualify for CCM.

No longer restricted to small contractors, the completed contract method is now also available to large contractors (exceeding the $31 million average annual gross receipts threshold) for qualifying residential projects. The OBBBA also extends the time period for qualifying construction contracts from two years to three years. Under the new rules, projects expected to be completed within three years can now qualify for the CCM.

Note: the CCM rules pertaining to commercial projects have not changed.

Should you use the completed contract method for your job?

The answer to this question varies depending on your situation and the particular job. The completed contract method allows you to defer paying income tax until a project is completed, providing additional cash flow for multi-year projects. However, lumping income together into a single year may result in a significantly higher tax burden for that year. We recommend meeting with your CPA to discuss the benefit of deferring taxes via the CCM versus spreading the tax burden over a longer period.

Reach out to our construction team at RBT CPAs for guidance related to the different methods of accounting for construction, and for all of your other accounting needs. We’re here to help you and your business succeed.

For New York-based construction companies structured as partnerships or S corporations, 2026 offers another opportunity to opt in to New York State’s Pass-Through Entity Tax (PTET). This article will cover what the PTET is, the potential benefits of opting in, and how to make an election for 2026.

Firstly, what is a pass-through entity?

A pass-through entity is a business entity in which income “passes through” to the business owner(s) and is therefore taxed at individual federal income tax rates, rather than at the entity level. Examples of pass-through entities include partnerships, limited liability companies (LLCs), and S corporations.

What is the NYS Pass-through Entity Tax (PTET)?

The NYS PTET is an optional entity-level tax that partnerships and S corporations in New York State can elect to pay as a workaround for the federal limit on state and local tax (SALT) deductions.

What are the benefits of opting in to the PTET?

By enabling partnerships and S corporations to be taxed at the entity level rather than at the individual level, the PTET provides a workaround for the federal limit on state and local tax (SALT) deductions. Since the PTET is a deductible business expense for federal purposes, partnerships and S corporations that pay the PTET are allowed a tax deduction against their ordinary business income without regard to the SALT limit, thus lowering overall federal tax liability. Partners, members, or shareholders of an eligible partnership or S corporation may also be eligible for a PTET credit on their New York State income tax returns. Additionally, for members of partnerships, the PTET may be used as a tool for reducing self-employment taxes.

How do you opt in for the PTET?

You can make your election online via the New York Department of Taxation and Finance through your entity’s Business Online Services account. Only an authorized person can make the election on behalf of your business—your accountant or tax professional cannot make the election for you. For partnerships, an authorized person includes any member, partner, owner, or other individual with authority to bind the entity and sign returns. For S corporations, an authorized person includes any officer, manager, or shareholder authorized to make the election.

When do you have to make the election by?

The deadline for making the election is March 15 of the current tax year. Eligible entities can opt in any time from January 1 to March 15. PTET elections must be made annually, so if you are opting in for 2026, you will need to make your election via your Business Online Services account by March 15—even if you have previously opted in for prior years.

When are payments due?

Entities that opt in to the PTET must make quarterly estimated payments via the DTF’s online application by March 15, June 15, September 15, and December 15.

Consult with Your RBT CPAs Accountant

A number of factors come into play when deciding whether the PTET can benefit your business. Your RBT CPAs accountant can help you determine whether opting in to the PTET for 2026 is the right choice for you. Give us a call today and find out how we can be Remarkably Better Together.

Signed into law early last month, the One Big Beautiful Bill Act (OBBBA) extends many provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 and establishes several new tax and spending policies. This article highlights the provisions of the OBBBA applicable to the construction industry.

QBI Deduction Extended

The OBBBA permanently extends the Qualified Business Income (QBI) deduction, which allows eligible taxpayers to deduct up to 20% of their qualified business income. The permanent extension includes additional modifications that expand the phase-in range of the wage and investment limitation and introduce a minimum deduction for businesses in which the taxpayer materially participates.

100% Bonus Depreciation Restored

The OBBBA permanently restores 100% bonus depreciation for qualified property placed in service as of January 19, 2025, reversing the planned phase-down of this provision. This change will benefit construction companies investing in new equipment or machinery, allowing these purchases to be written off immediately.

Depreciation for Qualified Production Property

The OBBBA also introduces an elective first-year 100% depreciation deduction for “qualified production property,” that is, nonresidential real property used in manufacturing or production activities.

Increased Section 179 Deduction

The Section 179 deduction allows businesses to deduct the full cost of qualifying equipment in the year it is placed into service. The OBBBA increases the Section 179 expensing limit to $2.5 million, reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

Immediate R&D Deductions Restored

U.S. research and development expenditures, previously required to be amortized over five years, can now be deducted in the year paid. Small businesses averaging $31 million or less in annual gross receipts may elect to apply the change retroactively for tax years beginning after December 31, 2021. All businesses that made domestic R&D expenditures between 2022 and 2024 may elect to accelerate the remaining deductions for those expenditures over one or two years. Unlike domestic expenditures, foreign R&D costs continue to require a 15‑year amortization under Section 174.

This provision will benefit construction companies looking to improve building processes, experiment with new technologies, innovate design processes, and more.

Limitation on Business Interest

The OBBBA reinstates the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) limitation under Sec. 163(j), effective for tax years beginning after December 31, 2024. Adjusted taxable income (ATI) will be computed without regard to the deduction for depreciation, amortization, or depletion.

Low-Income Housing Tax Credit (LIHTC) Expanded

The OBBBA permanently increases allocations for 9% LIHTC by 12%, and also permanently reduces the private activity bond financing requirement for 4% LIHTC from 50% to 25%, effective January 1, 2026. This expansion is expected to increase demand for affordable housing construction significantly.

Qualified Opportunity Zones and New Markets Tax Credit

The OBBBA makes the Opportunity Zones (OZ) tax incentive permanent, with several modifications, including a narrower definition of “low-income community” and expanded reporting requirements. Every ten years, state governors will propose new opportunity zones. The bill also includes additional incentives for rural opportunity zones. The OBBBA also makes the Sec. 45D New Markets Tax Credit (NMTC) permanent. These provisions offer incentives for investment and construction in economically distressed communities.

Exception from Percentage-of-Completion Method

The OBBBA expands the exception from the percentage-of-completion method requirement to certain residential construction contracts.

Removal of Clean Energy Incentives

The OBBBA terminates, phases out, or curtails many clean energy tax incentives, including the energy-efficient commercial buildings deduction (section 179D) and the new energy-efficient home credit (Section 45L). The removal of these incentives will require some construction firms to restructure their business strategy.

What’s Next?

Overall, the OBBBA expands opportunities for construction companies to reduce their taxes, improve cash flow, and plan for growth. RBT CPAs will continue to provide clients with updated information as IRS guidance on the OBBBA is issued. Meanwhile, if you have any questions about the recent tax law changes and how they could affect you, please don’t hesitate to reach out to our construction accounting professionals at RBT CPAs. Our team is here to support all of your tax, audit, accounting, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

As a construction business owner, you’re on top of your project plans—but what about your succession plan?  A comprehensive succession plan is a critical part of any company’s business strategy, helping to ensure the continued success of your business even after you leave your role as owner.

Why You Need a Comprehensive Succession Plan

A succession plan isn’t merely a piece of paper stating your chosen successor(s). A well-structured succession plan takes several years to develop and may change over time depending on the needs of your business and its stakeholders. It’s never too early to get started on a succession plan. You should begin planning for future transitions long before you expect to retire or leave your position. Life is unpredictable, and you never know when circumstances may demand a change of leadership. In the case of an unexpected event such as illness, injury, or even death, you’ll want to ensure that the management of your business is left in good hands.

When building your succession plan, consider what positions are critical to the operation of your business and identify high-potential employees as possible candidates for succession. A vital factor in developing future leaders within your company is a culture of constant training and mentorship. It is in your best interest to provide frequent, high-quality training opportunities and conduct regular performance reviews of your employees. Experienced construction professionals possess a wealth of hands-on experience, industry knowledge, and valuable skills. Mentorship programs ensure that this knowledge is passed down to the next generation of workers, rather than being lost when experienced employees leave or retire.

Not only does a detailed succession plan provide a blueprint for the future of your company, but it also earns the confidence of your employees, investors, clients, and other stakeholders by assuring them that a plan is in place for the inevitable transition of leadership. As such, it’s advisable to communicate your plan, as well as any changes or updates, to company stakeholders. The plan should be regularly reviewed and adjusted if necessary to ensure alignment with the business’s current goals and needs.

The Benefits of Buy-Sell Agreements

One question that you will face when developing a succession plan is how company ownership will be transferred when the time comes. One option for transferring ownership is through a buy-sell agreement. Buy-sell agreements are typically implemented by companies with multiple owners to guarantee business continuity in the event that one owner leaves the business for reasons such as retirement, voluntary exit, disability, or death. Buy-sell agreements help to protect the business by allowing a smooth transition of ownership, preventing owners from selling interests to outside parties, providing a method for assessing the value of company interests, and avoiding tax consequences of transferring ownership.

There are two main types of buy-sell agreements: cross-purchase agreements and entity-purchase (redemption) agreements. Under a cross-purchase agreement, the interests of the departing owner are purchased by the remaining owners. In the event of an owner’s death, tax-free life insurance policies (taken out by all owners on each other) are often used to fund this purchase. Under an entity-purchase agreement, the business entity itself purchases the interests of the departing owner, also commonly using tax-free life insurance benefits to fund the purchase. The establishment of buy-sell agreements is merely one component of a comprehensive business succession plan.

Set Your Business Up for Success

Investing the time and effort to formulate a succession plan early on reduces the risk of disruption and difficulties for your business down the road. It’s important to work with a team of trusted advisors throughout this process to ensure the long-term success of your succession plan and your business. RBT CPAs’ business advisory services experts are available to assist you with creating and reviewing your succession plan and buy-sell agreement. We are also here to support all of your accounting, tax, and audit needs. For more information, don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

A bomb cyclone hits leaving snowfall that’s measured in feet instead of inches, bringing down powerlines and trees that will keep area businesses closed for days and possibly weeks.

A fire at a nearby building creates hazardous conditions for the surrounding area, resulting in officials making nearby offices off-limits until safety can be assured.

A severe hurricane hits. The roof of your office building is torn off and everything inside is destroyed.  Work conducted in that building is stalled for months.

Severe weather and fire events are occurring with greater frequency. While you have commercial property insurance to cover physical assets, what about income you lose and expenses you must continue to pay should your business temporarily shut down?  That’s where business interruption insurance comes in.

Business interruption insurance replaces financial losses and expenses you must continue to pay during a shutdown related to a covered weather or fire event. So, any income you would have earned had the event not occurred plus any expenses you must continue to pay while your business is temporarily shut down are replaced. This helps protect your business’:

• Cash flow. Business interruption insurance replaces the income your business would have earned had the event not occurred, ensuring cash continues to flow into your business even if you’re temporarily closed.
• Working capital and equity. Rather than seeing your assets shrink and debts increase due to expenses you would still have to pay during a temporary closure (i.e., payroll, mortgage, taxes, loan payments, temporary workplace expenses and more), business interruption insurance covers these expenses. As a result, your working capital, short-term business health, and solvency are protected.
• By providing coverage to protect revenue and cover expenses, your business has the help it needs to protect profits during a shutdown and more quickly return to normal once a shutdown has ended.
• During a temporary shutdown, business expenses may increase to cover costs associated with an interim workspace (i.e., rent). Rather than seeing your cash on hand going to cover additional expenses, business interruption insurance can protect it by covering costs associated with having to open a temporary work location.
• Maintaining cash flow, working capital, and equity plays into the formula to determine your bonding rating, which can impact your ability to bid on and secure future work.

Anything not covered by your business interruption insurance, as well as the premium you pay for that coverage, are deductible on your income statement. What’s more, depending on your business’ structure, a business loss, if incurred, can be carried forward into future years if not used up in the current year.

In addition to the financial protections business interruption insurance affords, it can also help with employee retention and productivity by covering payroll during a temporary closure.  Considering today’s challenges recruiting and retaining talent, keeping payroll going during a shutdown ensures your business will have the staff needed to ramp up productivity as soon as the shutdown is over.

Finally, extreme weather or fire events usually result in more contracting jobs following the event. By having business interruption insurance, you not only keep your business running, but also equip it to take on additional work, and that benefits everyone.

More opportunities to take enhanced deductions under 179D are here. Make sure you understand changes and what you need to do – in terms of prevailing wages, apprenticeships, and recordkeeping – to maximize deductions.

Key changes now in effect include:

• Minimum energy savings required has been reduced from 50% to 25%, based on the ASHRAE 90.1 standard in effect four years prior to the building’s placed-in-service date.
• When prevailing wage and apprenticeship requirements are met and a building reduces annual energy and power costs by at least 25%, the deduction is $2.50/square foot. For each additional percentage that annual energy and power costs are reduced, the deduction increases by $.10, up to $5.00/square foot. (That’s up from $1.88/square foot in 2022.)
• The maximum deduction is available every three years for a commercial building; four years for a government, instrumentality, not-for-profit or Tribal government building. (In the past, it could only be taken once.)
• In addition to federal, state, and local municipal building owners being able to allocate 179D deductions to a designer or multiple designers (a.k.a. the person who creates the installation of energy-efficient commercial building property technical specifications), the same now holds true for tribal governments and any tax-exempt organization investing in energy-efficient property, including museums, religious buildings, hospitals, non-profit schools, and university-owned buildings.
• The interim lighting rule and partial qualification rules no longer apply.

Prevailing wage and apprenticeship requirements established by the Inflation Reduction Act to qualify for green tax breaks took effect for construction or installation that began on or after January 29, 2023. On November 30, 2022, the IRS issued a notice with additional guidance clarifying requirements.

When it comes to prevailing wage, according to the DOL, laborers and mechanics must be paid the applicable prevailing wage for all hours performing construction, and in some cases alterations and repairs, on the site of a qualified facility. A prevailing wage includes the basic hourly wage rate and fringe benefit rate for each class of laborers and mechanics, for each type of construction, in a defined geographic area. Prevailing wages are determined by the Secretary of Labor and are posted on http://www.sam.gov.

As for apprenticeship requirements, as noted on Apprenticeship.gov, apprenticeship requirements are: “(1) a taxpayer must ensure that a certain number of labor hours of construction, alteration, or repair work, including work performed by any contractor or subcontractor, be performed by qualified apprentices (labor hour requirement), expressed as a percentage of total labor hours of construction, alteration, and repair work, subject to any applicable requirement for the ratio of apprentices to journeyworkers (ratio requirement); and (2) the taxpayer and any contractors and subcontractors who employ 4 or more individuals to perform construction, alteration, or repair work employ at least one qualified apprentice to perform such work (participation requirement).”

For both prevailing wage and apprenticeships, there are recordkeeping requirements. For complete details, including FAQs, see IRS Notice 2022-61, and watch for additional information in the months ahead, as the Treasury Department and IRS will likely issue additional guidance.

In the meantime, RBT CPA accounting, tax and advisory services professionals are available to help ensure you maximize this opportunity to create energy-friendly buildings and receive enhanced tax deductions. We’ve been supporting construction companies in and around the Hudson Valley for over 50 years and believe we succeed when we help you succeed. To learn more, contact one of our offices today.

Like many states, New York has used the National Council on Compensation Insurance (NCCI) to determine the experience modifier (Mod) for calculating Workers’ Compensation (WC) premiums. After careful evaluation, the New York Compensation Insurance Rating Board (NYCIRB) decided to create its own rating plan and to withdraw from the NCCI interstate rating plan effective October 1. Overall, the NYCIRB rating plan gives employers more incentive (a.k.a., lower WC premiums) to focus on safety and reduce workplace injuries.

The NYCIRB and your insurance company will determine your Mod based on several factors and formulas.

Your business will continue to be assigned a four-digit classification code, which is used to group similar employers. However, under the NYCIRB rating plan, six classifications are being eliminated and integrated into other codes.

To start, the expected loss amount or total anticipated loss during an experience period (the timeframe that the policies being used to determine the Mod were in effect) will be determined. It is calculated for each classification using this formula:

Expected Loss Rate (ELR) X payroll)/100

Then, the results for all classifications are added together to calculate expected losses.

Next, a split point is determined. The split point divides losses for each claim into primary and excess components using a dollar value. Split points vary based on expected losses during an experience period for each classification. They range from $1,000 for the smallest risks to $170,000 for the largest.

The split point is used to determine an employer’s corresponding D-ratio, which is assigned based on the ratio of primary losses to expected losses for each class and risk size.

• Expected Primary Losses = expected losses for the classification X D-Ratio
• Expected Excess Losses = expected loses – expected primary losses
• Actual Primary Losses = reported losses limited by the split point value

Finally, the new modifier (based on experience rather than merit) is calculated:

Mod = (Actual Primary Losses + Expected Excess Losses)/Expected Losses

There’s one more thing that will happen: a new capping methodology which protects against overly harsh Mods will be applied. For one claim, the maximum Mod is 1.12; for 2 claims, the max is 1.4; for 3 claims, the max is 1.75; and for four or more claims, the max is 2 + .000003 X expected losses. For the first year (October 1, 2022 through September 30, 2023), if a Mod under the new plan is more than what it would have been under the prior formula using updated experience by more than .30, the Mod will be capped at the Mod resulting from the prior formula plus .30.

You can find more details in the NYCIRB Experience Rating Plan Manual. For change highlights, including an example and updated rating worksheet, refer to the NYCIRB’s Changes to the Experience Rating Program Explained pamphlet. You may also want to check out the Mod Estimator tool on the NYCIRB’s website and this video explaining the new formula.

It’s definitely a lot to take in but the good news is insurance companies will be doing the calculations. We just want to make sure you’re aware of them because they may result in a decrease (or increase) to your WC premiums come October 1 and give you another reason to focus on your workplace safety efforts.

If you have any questions about this or any accounting, tax, or auditing topic, please don’t hesitate to reach out to RBT CPAs.

“It was the best of times. It was the worst of times.” It was as if Charles Dickens was writing about the construction industry in 2022 when he penned these infamous words.

On one hand, the industry is looking at its single biggest cash infusion of all time. With the American Rescue Plan Act and Infrastructure Investment and Jobs Act, many construction projects will be kicking off in 2022. On the other hand, persistent labor shortages, supply chain bottlenecks, skyrocketing materials prices with no expectation of stabilizing anytime soon, fuel cost increases, inflation, and other challenges are plaguing the industry. So, what’s a construction firm to do? Start by focusing on the top one or two challenges.

The 2022 Association of General Contractors (AGC) Survey of providers in the Northeast and nationally shows the pandemic’s top impact on projects to be:

1. Costs are higher than anticipated.
2. Projects are taking longer than expected.

While those findings are probably no surprise, we hope some research we’ve done introduces you to one or two new ways to address cost and time challenges. It’s important to note that fixes for one challenge – time or cost – in many cases has a positive impact on the other; they are not mutually exclusive. With that in mind, here are some budget and scheduling tips:

• Be smart when developing a budget. The 2022 AGC survey found 62% of respondents were putting higher prices in bids and contracts. So, consider including a 5% to 10%
• Be realistic about scheduling. According to the 2022 AGC survey, 32% of respondents in the Northeast are putting longer completion times into their schedules. Create a master schedule, break it down into phases and then into tasks. Remember to include time for everything from paperwork to permits and inspections. Include a start and end date for each task and confirm you’ll have the equipment, materials, and staff to meet timelines. Consider what can occur concurrently and what needs to happen sequentially. Add 10% for unexpected issues and delays. Make sure your contract allows for time extension requests in certain circumstances.
• Get to know the details and plan accordingly. Know your project specs inside and out. Verify property boundaries and determine where anything underground is – pipes, septic, water, gas, electric. Draw a site layout to show where everything will go, including material, equipment, trailer, break areas, employee entrances, etc., so you can identify and fix potential issues before a project gets under way. Make sure insurance is up to date.
• Create a contingency plan. Expect and plan for the unexpected. Work with your team to identify potential risks and contingencies (i.e., plan for overtime if project is running behind; weather delays may warrant extra equipment and staff). Then, develop a risk management plan.
• Make safety a non-negotiable priority. Accidents and potential safety hazards can hurt budgets and timelines, not to mention businesses and reputations. Make sure your team and subcontractors know your safety expectations. Review your safety plan. Reinforce its importance daily. Address issues before they escalate. Make sure everyone knows how to escalate an issue or concern.
• Staff up. Some anticipate the labor shortage may pose even bigger challenges than what’s going on with supply chains and materials. So, focus on staffing and building relationships and backup relationships. Evaluate your benefits and pay. Decide whether it’s time to invest in upskilling. Reach out to community colleges and technical institutes to build a pipeline of potential talent.
• Work as a team. Make sure you have a full lineup with all positions covered – from supervisors to safety managers, expeditors, and more. Officially kick-off each project. Have your team and subcontractors review, give input, and sign off on plans. Hold weekly team meetings and clarify your expectations about communicating potential delays or risks. Make sure you listen to what your team members have to say.
• Manage your customer. Investing more time up front walking your customer through the ins and outs of the project can save you time and money later. Before starting a project, get your customer’s sign off on all materials and costs. Also make sure your customer understands how scope changes can impact time and costs. Set a cut-off date for customer changes and stick to it.
• Manage your project every day. Monitor and track your timeline and budget with daily reports. Pay attention to the details. Watch for red flags.
• Shop smart. If you’re a small organization competing against big ones, look to level the purchasing field with a group purchasing organization. Consider alternative materials that may also be less labor intensive. (For example, synthetic roofing materials may require less labor and equipment.) If possible, build material reserves.
• Use technology. Software can help you streamline and better manage each part of the process, from project planning to payment tracking. Use construction management software for scheduling, organizing and storing documents, and more. Consider the role digital and other technologies can play in saving time and money. Drones, wearable sensors, self-driving vehicles, and more are predicted to have huge impacts on productivity and value.

On every project, it’s a good idea to consult with your legal and financial advisors to mitigate risks. RBT CPAs is proud to serve construction businesses throughout the Hudson Valley and beyond. For financial and tax advice, give us a call.

Over the next five years, the Federal government will invest $1.2 trillion to overhaul and upgrade aging roads, bridges, railways and railroads, airports, water systems, broadband, the electricity grid, and a lot more. What can you do now to prepare to ensure you and your firm are ready to take advantage of this once-in-a-lifetime building opportunity?

Get Acquainted with the New Law

What’s included in the Infrastructure Law and how will that impact New York State and the Hudson Valley? Gain insights from our last article, “Hudson Valley Construction: Get Ready to Get Building.” [LINK]  You’ll want to pay attention because over $65 billion is already heading out the door so states and local governments can begin driving progress this year.  In 2022:

• S. Department of Transportation (USDOT)/Federal Highway Administration (FHWA) apportioned $52 billion to states for road and bridge repairs;
• Environmental Protection Agency (EPA) outlined $7.4 billion for states to spend on water infrastructure and to replace lead pipes;
• USDOT/Federal Aviation Administration (FAA) announced $3 billion to modernize 3,075 airports nationwide;
• EPA announced $1 billion in funding to clean up 49 hazardous Superfund sites in 24 states;
• USDOT awarded $230 million in Port Infrastructure Development Program Grants to modernize more than 30 port sites nationwide; and
• Each state can apply for $100 million in grants for highspeed internet, as well as orphan wells and mine remediation.

Keep an Eye on the Governor’s Press Room

Governors are being encouraged to prepare by appointing staff to manage the flow of funds to each state; consulting with Tribal leaders, county officials, civil rights and territorial leaders for input; identifying how American Rescue Plan (ARP) funds can help states prepare to maximize Infrastructure Law funds (i.e., use ARP funding to train workers to build the infrastructure; rehire public sector workers to manage funds; and start water, sewer and broadband projects to complement infrastructure law investments); contacting the State Department of Transportation for information on accessing highway and bridge formula funding; and identifying priorities suited for competitive grand funding programs.

So, staying in the know about what’s going on in Albany will also give you some insight on where to focus your efforts. A good place to start may be with daily visits to Governor Hochul’s online press room, where you can learn about new funds and plans as soon as they become available. (Case and point: Today, as this article was being written, a press release was issued announcing $76.4 million in funding for 38 projects to renew and modernize New York’s freight rail infrastructure.)

Take a Glimpse at the White House’s Guidebook

On January 31, the White House issued a guidebook at build.gov to help constituents learn what to apply for, contacts, and how to get ready to rebuild. The White House says the goal of the guidebook released Monday is to ensure that all communities have the details on how to qualify for funding, no matter their size or politics. Don’t be fooled by the 465 pages – it’s very user-friendly:

• For each major category, there’s a funding overview, action items to get ready, and resources for information and assistance.
• For each program within a category, there’s a one-page summary with the funding amount, period of availability, funding mechanism, whether it’s new, recipient description, eligible uses, and next milestone.
• A data file is also available to simplify sorting programs by agency, funding amount, eligibility, and more.
• Updates on deadlines and details will be issued in future versions of the guidebook.

In turn, the White House is encouraging regions and local governments to develop their own guides to help every community learn about and access funds. This is something you’ll want to keep on your radar.

Prepare, Plan and Get Ready to Bid

For those in the construction industry, it’s a good time to become acquainted with the White House guidebook; raise your hand and let government representatives know if there are particular areas of interest to you; examine staffing and training needs for your organization; consider whether you should be partnering with other firms; and prepare for all things accounting-, tax- and audit-related that may arise. Your partners at RBT CPAs are available to help you chart your financial course so you can maximize Infrastructure Law opportunities. Find out how – contact us today.

Sources: Build.Gov, Times Union, National Law Review, Forbes, ThomasNet, News 12, Brookings.Edu