The Road to Economic Recovery

Art Harrington, John Clancy A Sampling of Key Provisions in the American Recovery and Reinvestment Act Art Harrington, John Clancy Godfrey & Kahn, S.C. 780 North Water Street Milwaukee WI 414-273-3500 aharrington@gklaw.com jclancy@gklaw.com

Two Basic Parts Spending (about $500 billion). Most (but not all) money to states and local governments. Tax Relief (about $300 billion). Business incentives. Bonding and other financing tools Renewable energy incentives.

Spending Green energy and energy efficiency ($35 billion). Broadband internet ($7 billion). Transportation projects ($27 billion highway and $18 billion transit and rail). Water and other environmental projects ($18 billion). Education ($26 billion to districts and $54 billion to state fiscal relief). Healthcare and healthcare technology ($21 billion). Low-income housing ($10 billion).

Tax Relief – Business Recovery Extension of 50% business depreciation. 5-year carry back of net operating losses for small businesses. Delayed recognition of certain cancelation of debt. Incentives to hire veterans and certain youths. Small business capital gains exclusion.

Tax Relief – Bonding and other Financial Tools $1.5 billion/year increase in New Market Tax Credits. $25 billion in new Recovery Zone tax credit bonds. $2 billion in Tribal Economic Development Bonds. $22 billion in new Qualified School Construction Bonds.

Renewable Energy Extension of production tax credits. Temporary option of 30% investment tax credit. Option of 30% grant from DOE (similar option for low-income housing). 30% tax credit (up to $2.3 billion) for facilities that manufacture products for renewable energy generation, energy storage, energy conservation, etc. Additional $1.6 billion in CREBs and $2.4 billion in Qualified Energy Conservation Bonds.

The Road to Economic Recovery

US Federal Stimulus Update February 19, 2009

U.S. Economic Stimulus Legislation Status – Jan 15, 2009 Obama's economic stimulus package is starting to take shape. In multiple addresses, he outlined the first three parts: "First, we will launch a massive effort to make public buildings more energy-efficient. We need to upgrade our federal buildings by replacing old heating systems and installing energy efficient light bulbs." Second, infrastructure investments -- roads and bridges. "Third, we will repair broken schools, make them energy-efficient, and put new computers in our classrooms." JCI has been working with a number of energy and environmental groups (NRDC, ACEEE, ASE, EDTA) which are providing specific proposals on program funding for the stimulus package.

Revised ARRP Bill totaled $787 JCI relevant spend is about 10% of total spending 11 11

Federal direct spend flows through various agencies and uses many contracting vehicles JCFS Business Development JCFS Busn Dev and JCBAS, JCSS, JCGS JCGS, JCSS, JCBAS Regional Teams 12 12

TRANSPARENCY AND OVERSIGHT REQUIREMENTS SEC1511 & 1554 – CERTIFICATIONS & SPECIAL CONTRACTING PROVISIONS With respect to covered funds made available to State or local governments for infrastructure investments, the Governor, mayor, or other chief executive, as appropriate, shall certify that the infrastructure investment has received the full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars. Such certification shall include a description of the investment, the estimated total cost, and the amount of covered funds to be used, and shall be posted on a website and linked to the website established by section 1526. A State or local agency may not receive infrastructure investment funding from funds made available in this Act unless this certification is made and posted. To the maximum extent possible, contracts funded under this Act shall be awarded as fixed-price contracts through the use of competitive procedures. A summary of any contract awarded with such funds that is not fixed-price and not awarded using competitive procedures shall be posted in a special section of the website established in section 1526. 13 13

TRANSPARENCY AND OVERSIGHT REQUIREMENTS SEC 1526 - BOARD WEBSITE 14 14

The Road to Economic Recovery