Growing Small Construction Businesses
Last week, the House Small Business Committee held a hearing to analyze how targeted tax provisions aimed at small firms can maintain the economic recovery and encourage small business expansion. The American Recovery and Reinvestment Act (ARRA) of 2009 included several tax incentives to encourage American businesses to hire personnel and purchase equipment, states the latest NUCA Report.
Committee Chairwoman Nydia Velázquez (D-NY) began the hearing by pointing out how some of these tax incentives have contributed to the Nation’s economic recovery. “Since the Recovery Act’s passage, we’ve built on its momentum, extending many provisions that would have otherwise expired at the end of 2009, Rep. Velázquez said. “More recently, the HIRE Act was enacted, providing a tax credit for small businesses that bring on new employees. It also extended a credit for entrepreneurs purchasing business equipment—helping firms to expand and stimulating demand for everything from trucks to computers to machinery. Our witnesses today will be able to give us an assessment of how well these initiatives are working—and how to improve them.”
For the past several years, NUCA has supported tax incentives known as the “Section 179 and Bonus Depreciation,” which allows small businesses to expense the costs, up to $250,000, of qualified capital improvements in the year they are placed into service. While NUCA believes that tax incentives can spur new hires and the purchasing of new equipment, NUCA has maintained for years that the underground utility construction industry will not be in a position to take advantage of federal tax incentives unless we see improvements to our struggling markets. The message is simple: Utility contractors will not hire or buy equipment unless there are jobs out there that warrant it. Therefore, NUCA continues to promote legislation to invest in infrastructure as the best way to encourage investment in the economic recovery through employment opportunities and equipment purchases.
