Bologna, Italy is famous for its law school, and more famous for its sausages. And the folks in Bologna say that it's best for people never to see how either laws or sausages are made. The progress of the economic stimulus legislation through Congress proves them absolutely right.
Senate Appropriations and Finance Committees are busy marking up their versions of the economic stimulus tax and spending bills, and they don't agree on very much with the House version, which will go to the House floor Wednesday afternoon January 28 for a vote. The senate version of the spending part of the package allocates about the same total dollars as the House bill, but distributes it a little differently from the House version. The good news for the construction industry is that total spending for construction projects is about the same in both houses of Congress. And things may get even better. It would not be unheard of for the conference committee which will be formed to reconcile the two versions during the next couple weeks to increase total spending so that each agency gets whichever total is higher between House and Senate appropriations.
If that does happen, the total spending for construction projects will increase from about $153.3 billion up to as much as $168.7 billion.
Without accounting for the ongoing committee markups which will change these totals, the principal differences between House and Senate appropriations for construction look like this:
The Senate version gives $2 billion more for elementary school construction, but takes away $2.5 billion for colleges.
The Senate cuts $450 million from defense energy efficiency projects, but adds $900 million for defense family housing and child care facilities.
The Senate adds $6.3 billion for cleanup of old military bases and weapons production facilities.
The Senate adds $2.5 billion for VA hospitals and medical clinics.
The Senate cuts $3.4 billion from water navigation and flood control projects, and cuts $1.1 billion from drinking water projects.
The Senate cuts $3 billion from highway construction, adding $400 million to public transit construction and $4.5 billion for purchase of light rail and bus rolling stock.
The Senate cuts $1.7 billion from airport construction.
The Senate cuts $400 million from Section 8 housing construction, and cuts $1.6 billion from neighborhood stabilization.
The Senate adds $300 million to Superfund.
It also looks like the Senate version will roll back the Customs and Border Protection directive that lumber, steel and cement suppliers repay anti-dumping finds they received earlier this decade under the Byrd Amendment.
Senate Finance ranking member Charles Grassley wants to increase tax credits for wind energy from $13 billion to $20 billion as part of the economic stimulus package, and tax breaks for the construction industry may also include lifting of the tax on debt restructuring for two years, and eliminating the repayment requirement from homebuyer tax credit, as well as increasing the credit from $7,500 up to $20,000, and eliminating the restriction to first time buyers.
Finally, the Senate version could contain a $70 billion alternative minimum tax patch, and a 75% exclusion of capital gains tax on sale of shares in small businesses if the shares have been held over 5 years.
There will undoubtedly be more changes in the Senate markups, and the Conference Committee report in the next couple weeks. Bottom line, in all likelihood there will be a bill on President Obama's desk before Valentine's Day, and it will still include more than $150 billion for construction projects.
Senate Appropriations and Finance Committees are busy marking up their versions of the economic stimulus tax and spending bills, and they don't agree on very much with the House version, which will go to the House floor Wednesday afternoon January 28 for a vote. The senate version of the spending part of the package allocates about the same total dollars as the House bill, but distributes it a little differently from the House version. The good news for the construction industry is that total spending for construction projects is about the same in both houses of Congress. And things may get even better. It would not be unheard of for the conference committee which will be formed to reconcile the two versions during the next couple weeks to increase total spending so that each agency gets whichever total is higher between House and Senate appropriations.
If that does happen, the total spending for construction projects will increase from about $153.3 billion up to as much as $168.7 billion.
Without accounting for the ongoing committee markups which will change these totals, the principal differences between House and Senate appropriations for construction look like this:
The Senate version gives $2 billion more for elementary school construction, but takes away $2.5 billion for colleges.
The Senate cuts $450 million from defense energy efficiency projects, but adds $900 million for defense family housing and child care facilities.
The Senate adds $6.3 billion for cleanup of old military bases and weapons production facilities.
The Senate adds $2.5 billion for VA hospitals and medical clinics.
The Senate cuts $3.4 billion from water navigation and flood control projects, and cuts $1.1 billion from drinking water projects.
The Senate cuts $3 billion from highway construction, adding $400 million to public transit construction and $4.5 billion for purchase of light rail and bus rolling stock.
The Senate cuts $1.7 billion from airport construction.
The Senate cuts $400 million from Section 8 housing construction, and cuts $1.6 billion from neighborhood stabilization.
The Senate adds $300 million to Superfund.
It also looks like the Senate version will roll back the Customs and Border Protection directive that lumber, steel and cement suppliers repay anti-dumping finds they received earlier this decade under the Byrd Amendment.
Senate Finance ranking member Charles Grassley wants to increase tax credits for wind energy from $13 billion to $20 billion as part of the economic stimulus package, and tax breaks for the construction industry may also include lifting of the tax on debt restructuring for two years, and eliminating the repayment requirement from homebuyer tax credit, as well as increasing the credit from $7,500 up to $20,000, and eliminating the restriction to first time buyers.
Finally, the Senate version could contain a $70 billion alternative minimum tax patch, and a 75% exclusion of capital gains tax on sale of shares in small businesses if the shares have been held over 5 years.
There will undoubtedly be more changes in the Senate markups, and the Conference Committee report in the next couple weeks. Bottom line, in all likelihood there will be a bill on President Obama's desk before Valentine's Day, and it will still include more than $150 billion for construction projects.
