Congressional leaders came together in the early months of the pandemic to enact several major legislative packages to address the crushing impact of COVID-19 , including the $ 2.2 trillion CARES Act . The CARES Act created the Paycheck Protection Program and expanded the Small Business Administration ’ s Economic Injury Disaster Loan program , providing desperately needed assistance to businesses suddenly shut down or curtailed due to the pandemic . The CARES Act also authorized the Federal Reserve ’ s Main Street Lending Program to provide loans to support small and midsized businesses . Additionally , the legislation included provisions for an employee retention tax credit , a technical correction to the inadvertent 39-year cost recovery period to qualified improvement property rendered during tax reform , mortgage forbearance , direct payments , and expanded unemployment benefits .

Supplemental legislative relief was provided throughout the year to fine-tune aid measures , better target relief , and authorize additional funding . Additionally , provisions unrelated to the pandemic but significant for commercial real estate were passed in an endof-the-year omnibus bill , including a provision making the Section 179D deduction for energy-efficient commercial buildings permanent . Over the last several years , CCIM Institute has been advocating for the long-term extension or permanence of the Section 179D deduction to encourage sustainable development . The omnibus package also included a five-year extension of the New Markets Tax Credit program and significant energy provisions , including renewable energy and carbon capture project incentives .

LATEST CORONAVIRUS RELIEF Since January ’ s inauguration , the Biden administration ’ s top priority has been getting

the coronavirus under control and providing relief to those who continue to be harmed by the virus and its economic toll . President Biden signed the $ 1.9 trillion American Rescue Plan Act on March 11 , bringing the total amount of authorized federal aid to address the pandemic to $ 6 trillion . The American Rescue Plan Act provided :

• Additional stimulus checks to individuals and households .

• $ 45 billion in rental , utility , and mortgage assistance .

• $ 7.25 billion in additional funding and expanded nonprofit eligibility for the Paycheck Protection Program .

• $ 350 billion for state and local governments .

• $ 130 billion to schools .

• Funding to assist with businesses reopening .

• $ 25 billion for a restaurant grant program .

• $ 14 billion for vaccine distribution .

• An extension to federal weekly unemployment payments .

• An expanded child tax credit .

With optimism that the effects of the pandemic lessen as Americans continue to get vaccinated and the American Rescue Plan Act infuses relief , Congress is poised to tackle additional policy issues — like infrastructure investment , taxes , and cannabis business financing — that could impact commercial real estate .

INFRASTRUCTURE INVESTMENT Second in priority only to the pandemic relief bill for the new administration is the proposed Build Back Better plan to repair America ’ s crumbling transportation , water , and energy infrastructure systems while also addressing the impact of increased climate risk and extreme weather events . The new administration is also considering pushing for a comprehensive infrastructure package that would be an essential piece of pandemic relief by providing good paying jobs to further jump-start the economy . Biden ’ s infrastructure proposal envisions repairing and modernizing America ’ s transportation , energy , water , and digital infrastructure so they are globally competitive , equitable across communities , and resilient to extreme weather events . The February deep freeze in Texas that crippled the state ’ s electric grid and the water crisis in Jackson , Miss .,

similarly devastated by a winter storm , demonstrate the urgent need for sustainable infrastructure upgrades .

In its latest quadrennial report card , the American Society of Civil Engineers ( ASCE ) gave America ’ s infrastructure system a C-minus grade . During a recent U . S . Chamber of Commerce virtual infrastructure policy conversation , Thomas Smith , executive director of ASCE , noted that , “ Chronic underinvestment in our infrastructure has pretty serious consequences . Over the next 20 years , the average American household will spend $ 3,300 a year due to infrastructure deficiencies .”

Many of our country ’ s infrastructure categories fared poorly . The ASCE ’ s report , Failure to Act , which examines the economic impacts of derelict infrastructure , concludes that if we do not act , we are forecasted to lose $ 10.3 trillion in GDP from 2020 through 2039 .

Leaders on both sides of the political aisle have expressed enthusiasm for repairing and modernizing our infrastructure systems . What remains to be settled are the size of such a proposal and how to pay for it .

“ There is a lot of bipartisan optimism with moving forward in the House and Senate on transportation infrastructure issues , but the issue is the cost ,” says Russell Riggs , senior policy representative at the National Association of REALTORS ®. “ After passing a $ 1.9 trillion pandemic relief bill , will Congress have the appetite to enact another large legislative package ?”

Yet , as the ASCE economic analysis demonstrates , extraordinary costs are incurred by avoiding these necessary investments . Increasing the gas tax to adequately fund the Highway Trust Fund has been considered in prior infrastructure proposals . “[ But ] the Highway Trust Fund is reliant on people putting gas in cars , and that only pays for roads and transit projects ,” Riggs says . “ Fewer cars are going to be running on gasoline . General Motors has committed to producing all electric cars by 2035 .”

Even if the gas tax continued to fill the Highway Trust Fund at adequate levels , it is only structured to fund surface transportation and transit projects . At a February hearing by the Senate Committee on Environment and Public works , Committee Chairman Tom Carper ( D-DE ) discussed a national “ vehicles miles traveled ” approach to fund our nation ’ s transportation

Photo ( previous page ) by Bill Clark