Stimulus Legislation Defines Prospects for Landscape Architecture Projects

Here's a breakdown of elements of importance to the profession.

On Tuesday, February 17, President Barack Obama signed H.R. 1, The American Economic Recovery and Reinvestment Act, which provides approximately $789 billion in tax cuts and spending to help jump-start our nation's lagging economy. The White House and congressional leaders estimate that the package would create or save 3.5 million jobs over the next two years.

After hearing from ASLA advocates, ASLA CEO Nancy Somerville, and other allied professional organizations about the job creation associated with and benefits of community parks and highway beautification projects, Congress adopted a final stimulus package that allows stimulus funds to be used for community parks and highway beautification projects. However, the final bill does prohibit stimulus funds for certain other recreational projects. In particular, the bill states, "None of the funds appropriated or otherwise made available in this Act may be used for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool."

The final stimulus package also includes a number of other provisions important to landscape architects.

The National Park Service
The measure provides the National Park Service (NPS) about $750 million to complete infrastructure projects such as roads, bridges, and trails in national parks. ASLA contacted legislators to express concern regarding the striking of $200 million for the repair and rehabilitation of the National Mall in the House version of the bill. While this funding for the Mall was not reinstated in the final stimulus package, a portion of NPS infrastructure funding could be used to begin the much-needed work. The Interior Department estimates that its portion of stimulus funds would generate about 100,000 jobs over the next two years.

Funds for wildfire management, including forest health protection on federal and state lands and private forests, would be administered through the Department of Agriculture.

Transportation Infrastructure Programs
The bill appropriates $48 billion for the Department of Transportation for transportation and infrastructure improvements, including highway projects and mass transit. Funds include $27.5 billion for "ready to go" highway infrastructure projects under the Federal Highway Administration, including $1.5 billion in discretionary grants for road, bridge, and rail projects. Of the $27.5 billion, $170 million will be used for park roads and parkways, and $20 million will be used for highway surface transportation and technology. A total of $8.4 billion will go toward the Federal Transit Administration for mass transit projects, including $6.9 billion in transit capital assistance grants.

The bill would require that 3 percent of funds appropriated under the Federal Highway Administration’s Highway Infrastructure Investment program in the bill be set aside for Surface Transportation Programs, including the Transportation Enhancement program.

Energy Efficiency
The stimulus package includes $20 billion in tax incentives to spur investment in renewable and alternative energy, aimed at "green" jobs to make wind turbines and solar panels, and to improve energy efficiency in schools and federal buildings. The measure also appropriates $5.5 billion for federal building construction and repair projects, with an emphasis on projects that achieve high levels of energy efficiency.

Army Corps of Engineers
The bill also provides about $4.6 billion for the Army Corps of Engineers for construction, operation, and maintenance of the nation's flood control and navigation infrastructure, as well as the construction of environmental restoration projects.

Tax Incentives for Small Business
The final measure contains two major tax incentives for small businesses: accelerated depreciation and increased expensing. Under the accelerated depreciation incentive, small business owners may take a 50 percent bonus allowance on 2008 capital asset purchases acquired in that year. The remainder of the asset can be depreciated under the regular rules. With the new increased expensing rule, businesses may elect to treat certain assets as an expense (known as Section 179) and deduct them in the year the property was placed in service, instead of depreciating it over several years. Business owners may expense up to $250,000 in Section 179 assets purchased in the tax year beginning in 2008, nearly doubling the previous expensing limit.

The final version of the bill is accessible on the Library of Congress website (Part 1 and Part 2). Please contact ASLA's Government Affairs staff if you have any further questions.