{"id":19904,"date":"2022-08-22T08:55:53","date_gmt":"2022-08-22T12:55:53","guid":{"rendered":"https:\/\/www.foundationsoft.com\/?p=19904"},"modified":"2025-05-21T13:14:58","modified_gmt":"2025-05-21T17:14:58","slug":"2022-q3-industry-report-mixed-reactions-for-the-inflation-reduction-act","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/2022-q3-industry-report-mixed-reactions-for-the-inflation-reduction-act\/","title":{"rendered":"Q3 Industry Report: Mixed First Reactions for the Inflation Reduction Act"},"content":{"rendered":"

On August 16, 2022, President Joe Biden signed the biggest climate package in U.S history into law. Designed to lower prescription drug prices, reduce inflation and cut domestic greenhouse emissions, The Inflation Reduction Act<\/a> will provide $369 billion to fund energy and climate projects (as well as provide another $80 billion to revamp the IRS).<\/p>\n

With funding being directed towards green energy construction initiatives, the passing of this legislation will have some sort of impact on commercial construction. However, the overall scope of significance the new law will have on the industry is still being determined. Honestly, it\u2019s too early to tell.<\/p>\n\"UG<\/a>\n

Admittedly, I\u2019m still doing my research to develop both my opinion and my prediction regarding how the construction industry will respond to the Inflation Reduction Act. That said, I think there\u2019s still value in providing some overviews of the reactions currently circulating in the industry. Together, these perspectives may help paint a better picture of what the future holds for the industry \u2014 with some groups experiencing a surge in business as support is funneled into clean energy initiatives and highway projects, while others may struggle under the pressure of these new taxes and mandates.<\/p>\n

Some trades showing excitement over the Inflation Reduction Act include those in commercial construction landscaping and commercial transportation. The bill provides $3 billion dollars for the Neighborhood Access and Equity Grant Program which exists to fund projects that improve walkability, safety and affordable transportation around cities throughout the United States. There is an emphasis on revamping and developing streets, trails, transportation hubs and highways. The bill also incentivizes companies to use construction materials that have lower levels of greenhouse gas emissions.<\/p>\n

The groups proposing the Inflation Reduction Act have so far concluded that all these initiatives add up to the following opportunities:<\/p>\n