How the CHIPS Act will impact your future construction plans and projects
Not a manufacturer? This massive bill could still impact your construction project.
In early August, President Biden signed the CHIPS and Science Act, enacting legislation to help keep more semiconductor manufacturing in the U.S. and reduce reliance on overseas production. The $52 billion CHIPS Act will subsidize U.S. semiconductor manufacturing and provide a 25% tax credit for companies that build facilities in the U.S.
“Today is a day for builders,” President Biden said at the Rose Garden ceremony as he signed the act into law.
Construction industry groups, including the Associated General Contractors, supported the legislation. In a letter to senators, AGC’s vice president of government relations, James Christianson, urged them to vote “yes” on the bill, Engineering News Record reported.
Beyond the construction of manufacturing facilities for semiconductors, the CHIPS Act has the potential to spur further development across communities. In the areas surrounding newly built manufacturing facilities, communities may have a need for complementary development, including shopping centers, housing, schools, and hotels.
Developers should keep a close eye on the companies leveraging the CHIPS Act and evaluate opportunities to build around these facilities. Developers, whether they want to hone in on the areas surrounding new manufacturing facilities or not, should be mindful of how the CHIPS Act will impact the construction industry at large.
Construction firms are about to be tapped for significant building projects all across America. That means fewer construction firms will be ready to jump on projects when money starts flowing for CHIPS.
As the logistics of distributing CHIPS Act funds are sorted out in the months ahead, companies in other sectors should iron out their plans and lock in their construction partners. Ready to get to work? Compass Group is your partner for design-build services, construction management, general contracting, and land development. Contact us today, and let’s start discussing your next project.
Topics: construction industry