Companies that rely on heavy equipment to do their jobs are likely to hear about the impact of the Inflation Reduction Act (IRA) and other legislation that includes infrastructure investments, such as 2021’s Bipartisan Infrastructure Law, for some time. This presents an opportunity to get informed. Investing in your fleet could position you to engage in work projects implementing these funds.
For example, the 2022 IRA includes $369 billion for the expansion of electric vehicles and the development of innovative kinds of aviation fuel. These kinds of activities will depend upon manufacturers and companies that use cars, trucks and airplanes. The White House noted in a briefing that the IRA also will promote “construction of clean energy generation, storage and transmission, and enabl[e] technologies through efficient, effective mechanisms that incorporate community engagement.” Few businesses are more engaged in their local communities than construction companies, manufacturers and other users of big machines.
Another provision of the “once-in-a-generation” IRA is the $3 billion Neighborhood Access and Equity Grants, which will provide funding for efforts designed to promote greater accessibility in communities, especially historically underserved ones. This could include the addition of bike lanes and the installation of infrastructure that makes it easier to access public transit, according to a Construction Dive post.
Green tax credits contained within the IRA are expected to support activities that often require large equipment, according to the bipartisan nonprofit Environmental and Energy Study Institute, including:
- Renewable energy and clean electricity production: $62.3 billion
- Clean manufacturing: $36.85 billion
- Residential and commercial energy efficiency: $36.6 billion
- Nuclear energy: $30 billion
- Clean hydrogen: $13.17 billion
Meanwhile, the Bipartisan Infrastructure Law similarly contains numerous provisions that will require heavy equipment to be implemented. The White House notes this law is designed to “rebuild America’s roads, bridges and rails, expand access to clean drinking water, ensure every American has access to high-speed internet.”
Why now? Consider some of the statistics included in the Bipartisan Infrastructure Law announcements:
- 1 in 5 miles of major roads and highways need repair
- 45,000 bridges require upgrades
- 24,000 public transit buses and 5,000 rail cars are due for replacement
If your business works with heavy equipment and has an eye on fleet expansion or upgrades, this represents a moment to consider taking action. By positioning yourself with the best big machines, you can be prepared to pursue projects stemming from these new federal investments. That could mean new opportunities to be of service to your customers and the communities you serve.
If you need help securing financing for large equipment purchases, talk to the experts at Commercial Funding Partners. We’re here to help you get the best deal with the least hassle and the greatest upside. Call us at 801-545-4000 or visit our website for more information.