What Joe Biden’s Infrastructure Plan Means for Real Estate

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President Joe Biden (Getty, iStock)

President Joe Biden (Getty, iStock)

President Joe Biden this week offered a series of concessions to Republicans in the Senate, the White House said as he negotiates his $ 1 trillion infrastructure deal – a plan that would have huge implications for the real estate industry.

At a meeting in the Oval Office, Biden proposed introducing a new corporate version of the 15 percent alternative minimum tax, rather than raising the corporate tax rate to 28 percent from 21 percent to pay for the package. Washington Post reported. The original funding plan was rejected by Republicans who oppose the repeal of former President Donald Trump’s 2017 tax cuts.

White House spokeswoman Jen Psaki later added that raising the corporate tax rate above 21 percent remains an administration goal.

Initially, the infrastructure plan was supposed to cost $ 2.3 trillion, but during negotiations this price was gradually reduced. However, the required spending levels, as well as the potential tax hike, will create obstacles for the Biden administration when it comes to closing a deal.

The infrastructure plan was presented shortly after passing $ 1.9 trillion incentive package. The infrastructure deal is part of Biden’s long-term economic program, which could ultimately cost $ 3 trillion.

But how many punches would Biden get for his money? While much could change as negotiations continue, here are five suggested points of note for the real estate industry:

  1. Well … Infrastructure, obviously

    The plan aims to repair and replace damaged infrastructure across the country. It will modernize 20,000 miles of highways, roads and main streets, and repair 10 of the most economically significant bridges, as well as 10,000 smaller bridges in the worst condition. It will also replace thousands of buses and railroad cars, renovate hundreds of train stations, renovate airports and expand transit services to new settlements.

  2. Affordable and public housing

    More than a million affordable housing units will be built or upgraded under this proposal. Public housing units will receive additional funding for necessary repairs. Energy efficiency will be a part of both new and improved housing.

  3. Medium-income housing and zoning

    In addition to affordable and public housing, more than 500,000 homes will be built or renovated for low- and middle-income homebuyers. The Biden administration will do this by providing tax breaks under the Neighborhood Investment Act for the next five years.

  4. Zoning

    Biden is also seeking to repeal exclusionary zoning laws such as minimum lot sizes, mandatory parking requirements, and bans on multi-unit housing. To this end, Biden offers a grant program that provides funding to jurisdictions that remove such barriers.

  5. Commercial buildings

    Other buildings to be built or renovated include public schools, community colleges, childcare facilities, veterans’ hospitals, and federal buildings. The focus will be on communities that do not have such centers.

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