info@joclghana.com +233 207 981 908
August 31, 2019 - BY Admin

Builders say One Big Beautiful Bill Act will fuel construction activity

Firms expect a spike in starts, but the race to break ground may compound certain issues.

The One Big Beautiful Bill Act is opening the door for increased construction investment, but it may also deepen existing challenges tied to labor and supply.

Unlike the Inflation Reduction Act, which concentrated its support on clean energy, the One Big Beautiful Bill Act casts a wider net, said Vance Walter, senior director of legislative affairs at Associated Builders and Contractors.

Its most transformative provisions include the restoration of 100% bonus depreciation, immediate expense of research and development costs and a permanent extension of the 20% pass-through deduction under Section 199A, said Deniz Mustafa, senior director of infrastructure finance at Associated General Contractors of America. These serve as boons for construction activity, according to industry sources.

“This also improves cash flow and makes it easier for contractors to replace aging equipment,” said Mustafa. “In the construction industry, this means it is easier for companies to access equipment that is safer, cleaner and more efficient.”

The changes are particularly significant for small and mid-sized contractors, where cash flow and tax predictability influence everything from equipment purchasing to hiring.

“Businesses can now immediately expense capital investments through 100% bonus depreciation,” said Walter. “This will encourage firms to invest in new construction equipment and technologies, boosting safety, quality, productivity and economic growth.”