Small Businesses

How businesses stand to benefit from the Infrastructure bill

  • 3 min Read
  • November 24, 2021

Author

Escalon

Table of Contents

Curious as to what the new Infrastructure bill could mean for your business? In a nutshell, the $1.2 trillion bill aims to modernize the nation’s long-neglected infrastructure projects while also strengthening supply chains and creating as many as 1.5 million new well-paying union jobs.

In a statement praising President Joe Biden’s signing of the bill into law, U.S. Chamber of Commerce President and CEO Suzanne Clark said the bill would “help connect 14 million Americans to broadband, provide clean drinking water for 10 million families, upgrade our energy grid, and create millions of jobs.” 


Breaking down that massive $1.2T into broad categories, the bill allocates $21 billion for environmental efforts; $39 billion for public transportation; $65 billion for power; $65 billion for broadband; $105 billion for water systems; $108 billion for railways, airports and ports; and $110 billion for roads and bridges.


Below is a distillation of the bill’s chief elements of interest for businesses:


  1. The Employee Retention credit has ended

The ERC is a federal tax credit that incentivized employers to keep workers on their payrolls throughout the COVID-19 pandemic by providing a refundable tax credit against qualified employee wages.  While the ERC was originally intended to last until the end of 2021, part of the Infrastructure bill mandated that the program end early. The ERC has expired as of Sept. 31, 2021, so wages paid beyond September are not eligible.


  1. More funding for minority-owned businesses

The Minority Business Development Agency, a federal agency that helps minority-owned businesses access government access and capital, will receive $110 million each year through 2025 versus the $48 million it received in 2021. Most of the funding will be slotted for its Business Center Program to help minority entrepreneurs with technical assistance and community referrals.


  1. Investment in construction

“The infrastructure bill will present an opportunity for private companies to create public-private partnerships that will amplify the funding in the bill, as well as fortify infrastructure as a stable asset class that’s able to deliver the long-term, reliable returns private capital investors look for,” said Murray Rowden, global head of infrastructure at Turner & Townsend.


How the bill invests in construction:


  • $17 billion for shoring up port infrastructure.
  • $25 billion for airports’ renovations.
  • $110 billion for rebuilding roads and bridges.
  • $226 billion for new transportation projects like light-rail line extensions, redesigned intersections, and protected bike lanes.
  • $66 billion for railway expansion and upgrades.
  1. Investment in telecommunication

The bill commits the following investment for deploying broadband networks:


  • $65 billion toward broadband infrastructure.
  • $42.5 billion to expand access to high-speed networks.
  • A subsidy of $30 a month to help low-income households pay for high-speed internet service.
  1. Investment in energy-efficient devices, solar power

The bill provides homeowners with a rebate of $2,000 for repairs that save 20% to 35% on their monthly energy costs or a $4,000 rebate if that number exceeds 35%. Thus, it encourages people to upgrade to energy-efficient devices.


The bill also increases subsidies for solar panel installations to 30%, encouraging more people to install solar panels. Further, it incentivizes companies to build plants and begin manufacturing their solar equipment in the U.S. to support solar industry growth.


  1. Investment in the electric vehicle industry

The bill’s intent to create infrastructure for electric vehicles will ensure long-lasting demand for battery-powered cars, even outside dense city centers, said Kristin Dziczek, senior vice president for research at the Michigan-based Center for Automotive Research. 


The bill pledges the following investments toward clean energy and electric vehicles:


  • $7.5 billion for building a nationwide network of electric vehicle chargers.
  • $36 billion to develop technology for cleaner energy.
  • $5 billion for replacing buses with zero-emission vehicles, including electric school buses.
  • A tax credit of up to $12,500 for purchasing electric vehicles.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

How to Set Up Payroll, A Guide for Small Business Owners 

Setting up a payroll system is an essential step that helps small business owners pay their employees accurately and on...

Read More
Accounting & Finance

Financial Planning for the Future, Setting Long-Term Business Goals

While small businesses must handle day-to-day tasks—like managing payroll or closing monthly books—long-term planning is the compass that keeps them...

Read More
People Management & HR

Benefits Administration, What Small Business Need to Know

Benefits administration can be a game-changer for small businesses aiming to attract and retain top talent. While salaries remain an...

Read More
Accounting & Finance

AAP vs. Cash Accounting: Which Method Is Best for Your Growing Business? 

Choosing the right accounting method can significantly impact how you track financial performance, manage taxes, and plan growth. Two common...

Read More
Accounting & Finance

Beyond Bootstrapping: Advanced Cash Flow Management for Scaling Companies 

Bootstrapping—financing growth through internal cash flow—is a hallmark of many successful startups. But as businesses mature past their initial stage,...

Read More
Technology & Security

Building a Scalable Tech Stack: How to Choose the Right Tools for Growth 

In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...

Read More
Accounting & Finance

How to Reduce Month-End Close Time Without Sacrificing Accuracy 

The month-end close can feel like a perpetual scramble—collecting invoices, reconciling accounts, fixing last-minute errors. A drawn-out close not only...

Read More
uncategorized

How to Reduce Overhead Costs Without Impacting Productivity 

Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...

Read More
Accounting & Finance

How to Structure Your Finance Team as Your Business Scales

Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...

Read More