HOUSTON—The new tax bill will have both positive and negative effects on the construction industry, according to DRB Consulting LLC. The obvious effect is the reduction of the corporate tax rate from 35% to 21%.
The American Institute of Architects claims to have influenced the negotiations around the bill to have architects and engineers included as part of the reduced tax rate. Construction companies were included but no reduction in pricing is anticipated due to the reduced tax rate. In fact, DRB expects the contrary for a series of different reasons.
An important inclusion is that businesses will be able to quickly deduct the cost of property and equipment additions. These will be attractive to construction contractors who have a need or desire to make significant investments in expensive equipment such as heavy trucks, earthmovers and cranes.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
