IN SESSION
Economic Stimulus Package – Investment Provisions
In addition to the investments listed above, H.R. 1 provides a number of tax incentives for individuals, businesses and energy improvements.
• INDIVIDUALS: More than 26 million families will receive
tax relief in 2009, with the extension of the Alternative
Minimum Tax (AMT) relief for nonrefundable personal
credits and the increase of the AMT exemption amount to
$70,950 for joint filers and $46,700 for individuals.
• BUSINESSES: A 5-year carry-back on net operating
losses for small businesses, an extension of increased
small business expensing, a small business capital gains
tax exclusion, an extension of the bonus depreciation
period, tax relief for businesses that reacquire, satisfy
or otherwise discharge debt obligations at a discount in
Tax Provisions
In February of this year, President Obama signed H.R. 1,
the “American Recovery and Reinvestment Act of 2009.”
The bill includes $787 billion in spending and tax cuts.
Commercial real estate is supported through provisions
focusing on green building and energy efficiency, as well
as business tax incentives. The bill provides significant
funds for state energy programs, which could be used
to support commercial property owners’ investment in
energy-efficiency upgrades and alternative energy systems. Below are highlights of the investment provisions of
particular interest to the commercial real estate industry.
• COMMERCE: $4.7 billion for the Broadband Technology
Opportunities Program (BTOP) to accelerate broadband
deployment in underserved areas and $650 million for
additional implementation and administration of the digital TV convertor box coupon program.
• GREEN BUILDINGS AND ENERGY EFFICIENCY: $6.3
billion for energy efficiency grant programs, including $3.2 billion for the energy and conservation block
grants administered by the Department of Energy (DOE)
and $3.1 billion for the State Energy Program (SEP).
Commercial property owners seeking funds or tax breaks
to offset the cost of energy-efficiency upgrades will need
to apply through city and state government programs,
which will receive funds under the stimulus bill.
• ENVIRONMENT: $200 million in competitive grants for
the cleanup of leaking underground storage tanks and
$100 million in competitive grants for Brownfields cleanup. Additionally, the bill provides a total of $6 billion for
both the Clean Water State Revolving Funds (CWSRF)
and Drinking Water State Revolving Funds (DWSRF).
• HOUSING: $4 billion for the Public Housing Capital
Fund which will assist public housing authorities in rehabilitating and retrofitting public housing units, including
increasing the energy efficiency of units and making critical safety repairs. For those who manage affordable or
assisted housing, the bill provides $2.25 billion for rental
assistance and grants or loans for energy and green retrofit investments.
• RURAL DEVELOPMENT: $1.38 billion additional funding for the rural utilities service loans and grants for
water and waste disposal facilities. It also provides $130
million additional funding for loans and grants for essential rural community facilities, including hospitals,
health clinics, health and safety vehicles and equipment,
public building, and child and elder care facilities.
• TRANSPORTATION: $48 billion for transportation-related infrastructure projects, including highway and
bridge construction, transit new construction, upgrades
and repairs, and high-speed rail corridors.
2009 and 2010, and a temporary reduction period for S
Corporation built-in gains.
• ENERGY IMPROVEMENTS: A 3-year extension for the
period during which qualified facilities producing certain
renewable electricity may be placed in service for purposes
of the electricity production credit. Additionally, $1.6 billion in new, clean renewable energy bonds (CREBs) may
be issued by qualified issuers (public power providers,
cooperative electric companies, etc.) to finance qualified
renewable energy facilities. Finally, the credit cap applicable to qualified small wind energy properties is eliminated, as is the rule reducing the basis of the property for
purposes of claiming the credit if the property is financed
in whole or in part by subsidized energy financing or with
proceeds from private activity bonds.
The federal government has created a Web site, www.recovery.gov, to provide information about federal
grant awards and contracts as well as formula grant allocations under H.R. 1.
