Investing in infrastructure is a crucial component of America’s future. This results in more opportunities for contractors, as well as providing improvement for communities. Therefore, setting goals for infrastructure investment is a topic of interest. So, representatives John Larson, a Democrat from Connecticut, and Kenny Marchant, a Republican from Texas, have introduced the “Invest in America Act.” This is an initiative to make infrastructure better and repeal the “Foreign Investment in Real Property Tax Act” (FIRPTA).
What is FIRPTA?
The FIRPTA authorizes the U.S. to tax foreign people on dispositions of U.S. real property interests. In 2015 there was a partial repeal of FIRPTA. This made way for the “Protecting Americans from Tax Hikes Act” to be created. Moreover, there were changes to the law, which increased global investment in U.S. cities by 33%. So, if there is a full repeal, this would result in significant benefits to state and local economies.
Invest in America Act
The Invest in America Coalition is a diverse, bipartisan alliance of real estate companies, investors, trade associations, and labor organizations. Their goal is to champion reforms that will attract more global investors to invest in American infrastructure projects. Such reforms include repealing FIRPTA and capital gains foreign investors must pay. The Invest in America Act legislation has the potential of creating as many as 284,000 jobs and attract $125 billion in global investment in U.S. communities. This legislation has the American people in mind. Additionally, it would open doors to projects such as the following:
- Improve aging buildings
- Build new roads
- Build and update bridges and tunnels
- Improve hospitals and airports
“This legislation will put the U.S. on equal footing in the competition for investment dollars, which can be put directly into American communities through partnerships with local and state governments. This will result in meaningful jobs not only for architects but other professionals in design and construction as well as manufacturing and service industries.”AIA EVP/Chief Executive Officer Robert Ivy, FAIA
Foreign Money Cons
President Donald Trump’s budget proposal of $200 billion for infrastructure spending predicts that this amount will help draw more than $1 trillion or so of additional investment. However, relying solely on foreign investment has its cons. For example, the Oceanwide Plaza construction project in downtown Los Angeles stalled for more than a month due to unpaid bills. This was a project where the Chinese invested $1 billion. Allegedly, the slowing down of the project was because there was a plunge in the Chinese economy, which forced developers to invest domestically rather than abroad.
Contributing to America’s Infrastructure
As a steel bridge company, U.S. Bridge is concerned and keeps abreast of the future of our nation’s infrastructure. In order to begin improving our future, we need to work together and care for the commodities we have. So, contact us and see how we can help with your bridge project today.