Author: agcnews

This week, AGC helped lead a coalition effort with the International Franchise Association (IFA) calling on Congress to expand the availability of “second draw” Paycheck Protection Program (PPP) loans for small businesses. A provision in the Senate GOP COVID relief proposal would allow small businesses to apply for a second PPP loan, but with stricter criteria than for the original PPP loans. One of the new requirements for second draw loans is that a business demonstrate a 50 percent loss in revenue. AGC called for lowering the revenue loss threshold, so that additional small businesses qualify. Shortly thereafter, the Chair and Ranking…

As of August 6, negotiations between the White House and Democratic congressional leaders continue with diminishing hope of reaching a bipartisan agreement on another COVID-relief bill. The biggest hurdle remains a path forward on the CARES Act $600/week federal unemployment insurance (UI) benefit, which expired on July 31. With construction jobs, markets and the future of the industry on the line, AGC has focused its advocacy efforts on pressing for significant infrastructure construction investment, sensible liability protections for construction businesses, and a transition away from the $600/week UI benefit that has created an artificial barrier for some workers to return…

The U.S. Department of Labor’s Wage and Hour Division (WHD) released additional guidance for employers with certain federal contracts regarding paid sick leave or expanded family and medical leave under the Families First Coronavirus Relief Act (FFCRA). The guidance provides compliance assistance to employers with service contracts with the federal government covered by the Service Contract Act and federal construction contracts covered by the Davis-Bacon Act. Specifically, the guidance addresses whether federal contractors must include fringe benefits when they pay employees paid sick leave or expanded family and medical leave under the FFCRA along with any potential interaction with Executive Order (EO) 13706,…

Construction spending declined for the fourth consecutive month in June as decreases in single-family, highway and educational projects outweighed increases in several private nonresidential categories, according to an analysis by the Associated General Contractors of America of government data released today. As state and local government face budget deficits, association officials cautioned that investments in infrastructure and other construction projects are likely to continue falling unless Congress and the Trump administration provide additional, targeted and dedicated infrastructure funding. “Regrettably, the overall downward trend in spending is likely to continue and to spread to more project types as work that began…

AGC of America has created a special report called We Kept America Building. This new report details AGC of America’s response to the Coronavirus and highlights examples of how AGC has supported the industry during the pandemic. Click HERE to view the full report. We have also created a short video: The following one-pager for AGC chapters can be used to highlight local efforts and how they kept contractors from their states working during the pandemic. Click HERE to download the interactive PDF file.

On July 28, AGC joined fellow construction employer groups and building trades unions in support of new retirement plans, Composite Plans, which enjoy bipartisan backing in Congress. These groups recognize the importance to preserve lifetime retirement benefits for millions of working men and women and will continue to advocate for pension reform in COVID-19 relief packages. The construction groups and unions take direct aim at opponents of Composite Plans who have failed to provide any legitimate criticism of the composite plan design plan model. An additional Composite Plan resource from June included new analysis that found Composite Plans would have fared better during the…

On July 29, the House of Representatives unanimously passed the AGC-backed Water Resources Development Act of 2020 (H.R. 7575), which would authorize investment in 34 new Army Corps of Engineers Civil Works construction projects. Both the Senate (S. 3591) and House versions of WRDA adjust the cost-share from 50% for Inland Waterways Trust Fund (IWTF)/50% General Revenues to 35% IWTF/65% General Revenues, which could potentially provide $1 billion in additional construction funds over 10 years. This important reform will assist local governments which are expected to have less revenue due to economic impact of COVID-19. The House version provides the authority to…

One provision that was unfortunately not included in the Senate Republican Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, was the overturning of an Internal Revenue Service (IRS) ruling related to the deductibility of expenses associated with income from Paycheck Protection Program (PPP) loan forgiveness. Despite clear congressional intent to ensure that PPP loan forgiveness be untaxed, earlier this year the IRS ruled that any expenses associated with PPP loan forgiveness were not deductible. In May, AGC led a coalition effort with 152 trade associations, calling for congressional action to overturn this ruling. The Democratically-introduced and supported HEROES Act, which passed the House of Representatives earlier…

The Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, introduced on July 27 by Senate Republicans, contains AGC-supported changes to the Employee Retention Tax Credit (ERTC), similar to what was included in the HEROES Act which was passed out of the Democratically-controlled House of Representatives earlier this year. The changes would increase the maximum tax credit available to employers affected by COVID-19 from 50 percent of $10,000 of employee wages (or $5,000), to 65 percent of $30,000 in employee wages over three calendar quarters (or $19,500). The HEALS Act would also ease eligibility for the ERTC and allow larger employers…

The Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, introduced on July 27 by Senate Republicans, would allow certain small businesses to apply for a second Paycheck Protection Program (PPP) loan. To qualify for a “second draw loan” a business would need to meet more restrictive criteria than those for the original PPP. The business would need to meet applicable SBA size standards, have no greater than 300 employees, and demonstrate a greater than 50 percent reduction in wages. The loan size would be capped at $2 million and could not exceed $10 million when combined with a business’s original PPP loan. Additionally,…