President Biden Releases the America Jobs Plan: $2.25 Trillion Legislation

President Biden released his America Jobs Plan (summary attached) aimed at building our nation’s infrastructure. While the $2.25 trillion legislation will cover a variety of initiatives, the National Restaurant Association is particularly interested in the following provisions. The Administration also plans a second major package next month focused on social measures, including expanding health care and paid-leave access and extending the child tax credit.
 
While the Association supports the Administration’s efforts to improve our nation’s infrastructure, we are concerned about current tax provisions and provisions encouraging passage of the PRO Act, which would negatively affect restaurant companies. As this proposal moves forward, we will keep you updated on provisions that could affect our industry and our work with Congress and the Administration. Please let us know your thoughts on the proposal as well after you have a chance to review and digest.
 
Tax Increases

• Tax increases will be used to pay for the plan
• U.S. corporate income tax would increase to 28% from 21%, and a 21% minimum tax will be set on global corporate earnings.
• Institute a 15% minimum tax on a corporation’s profits for financial reporting purposes
• Additional funding for the IRS to increase audits on corporations
• Eliminate expense deductions and credit expenses for offshoring jobs
• Eliminate the tax incentives in the Foreign Derived Intangible Income, which allows tax breaks for shifting assets abroad

 
Labor Provisions

• Calls on Congress to pass the pro-union Protecting the Right to Organize (PRO) Act.
• Asks Congress to tie federal investments in clean energy and infrastructure to prevailing wage laws, and requires that investments in transportation meet existing transit labor protections.

 
Transportation Infrastructure

• $620 billion for transportation, including a doubling in federal funding for public transit.
• $115 billion to improve bridges, highways, roads and $20 billion for road safety, which will upgrade 20,000 miles of roads and highways.
• $85 billion to modernize public transportation systems and $80 billion for Amtrak.
• $25 billion for airports and $17 billion for ports, inland waterways and ferries. $20 billion for transportation projects for disadvantaged communities.

 
Small Business and Workforce Development

• $100 billion for workforce-development programs, including training for those who have lost their jobs, as well as apprenticeship initiatives.

• Invest in HUD’s Community Development Block Grant Programs and tax credits for small businesses to invest in disaster resilience
• $5 billion for a new Rural Partnership Program to help rural region’s economic development needs.
• Calls on Congress to invest $31 billion in programs that give small businesses access to credit, venture capital, and R&D dollars. Also includes funding for community based small business incubators and innovation hubs.

 
Clean drinking water and high-speed broadband  - $650 billion for initiatives tied for clean water and high-speed broadband.

• $111 billion to improve water infrastructure and replace lead service lines
• $56 billion in grants and low-cost flexible loans to states to modernize clean water infrastructure
• $45 billion for the Drinking Water State Revolving Fund
• $100 billion to bring affordable, high-speed broadband to all Americans

 
Energy Initiatives

• $174 billion investment in electric vehicles

• Provides grants to state and local governments and the private sector for 500,000 charging stations by 2030
• $100 billion for a more resilient electric grid and establish an Energy Efficiency and Clean Electricity Standard aimed at cutting electricity bills and electricity pollution

 
Climate Initiatives

• $10 billion for a new Civilian Climate Corps
• 10-year extension to renewable tax credits
• $50 billion to support agricultural resources management and climate-smart technology to protect communities from natural disasters

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American jobs plan fact sheet