New Coronavirus Recovery Measure Will Provide Some Needed Relief for Contractors

Since the pandemic began in early 2020, CAWP has made it a priority to meet with members of the western Pennsylvania congressional delegation, and their staff, to stress the need for additional transportation funds in any future COVID-relief legislation.  Finally, on December 21, Congress was able to pass both a COVID-relief bill and a federal funding package.  The president signed the legislation into law on December 27.

The most notable provision for CAWP Contractors was the inclusion of $10 billion in needed funding to help address the pandemic-induced shortfalls in state transportation revenues. The hope is the new funding will assist in preventing road projects from getting canceled or delayed over the coming months.

Another issue of importance was the blocking of a surprise federal tax increase of up to 37 percent on Paycheck Protection Program (PPP) loan forgiveness.  This legislation includes language that overturns the IRS position barring deductions for PPP loan-forgiven business expenses.  This was a main priority for the AGC of America, and the Association received a fantastic response from members when we asked them via a CAWP Legislative Alert, to contact Congress on this issue.

Other important provisions included in the COVID-relief legislation are:

  • Airport Construction – $2 billion for airports that will help mitigate revenue loss impacts to ongoing and planned construction projects
  • Locks and Dams – Inclusion of the Water Resource Development Act of 2020, which authorizes funding for 46 U.S. Army Corps of Engineers Civil Work projects
  • FFCRA Paid Leave – the Families First Coronavirus Response Act paid-sick and paid-family leave mandates expired on December 31, 2020 and were NOT extended into 2021

Click here for the AGC of America’s analysis of both the COVID-relief and federal funding package.