INDUSTRY NEWS
PERSPECTIVE
The Infrastructure and Inflation Reduction Acts and you A refresher course on the 5 things every contractor should know about requirements for construction funding By Michelle Akerman & Stuart Eisler
T
ogether, the 2021 Infrastructure Investment and Jobs Act (the "Infrastructure Act") and the Inflation Reduction Act of 2022 (the "IRA") authorize hundreds of billions for domestic infrastructure and energy projects—a bonanza for contractors. But those funds
come with strings attached. Here, we outline some of the requirements for construction funded by the Infrastructure Act or the IRA. Savvy Contractors will have a firm grasp of the legislation and its requirements. The 2021 Infrastructure Act authorized roughly $550 billion for federally-owned projects and approved state or local projects receiving federal funding. The Act earmarked funds for bridges, roads, transit, railway, energy, and other infrastructure projects.
24
The IRA authorized approximately $700 billion in spending on a broad range of programs, including hundreds of billions for drought resiliency in western states, energy security and climate change. While the legislation's benefits are massive and clear, the requirements remain opaque. To realize the full value of this legislation, contractors must meet fairly stringent federal and agency requirements as well as applicable state or local requirements.
COMMERCIAL CONSTRUCTION & RENOVATION — ISSUE 3, 2023
1
Build America, Buy America (“BABA”) Related Requirements
Both the Infrastructure Act and the IRA require domestic sourcing consonants with BABA. Both Acts require 100% domestic steel and iron use on projects. The Infrastructure Act goes further, requiring construction materials and manufactured products to be American-made goods based on technical definitions to evaluate the manufacturing