Taking Advantage of New Tax Credits and Prevailing Wage Bonuses Under the Inflation Reduction Act for Clean Energy Construction Projects
September 02, 2024 —
Abby Bello Salinas, Jennifer Harris & Sahara Mokhtari - ConsensusDocsIntroduction: IRA Boosts U.S. Construction Industry
On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the “IRA”) into law.[1] The IRA marked a legislative milestone for clean energy in the United States in part by providing funding mechanisms for clean energy infrastructure projects. This new emphasis on green projects has already created a surge of opportunities across the construction industry—the Internal Revenue Service (“IRS”) estimates that IRA clean energy projects will create over 1.5 million jobs over the next decade.[2]
But what can contractors do to take advantage of IRA incentives to reduce costs, build a reliable workforce, and gain a competitive advantage in the new infrastructure landscape created by the ever-increasing number of IRA-related projects? The IRS Final Rule, 89 FR 53184 (29 CFR 1), effective August 26, 2024, provides some guidance by outlining the increased credits and deductions available to taxpayers that satisfy the criteria under the IRA, such as prevailing wage and registered apprenticeship requirements.
Reprinted courtesy of
Abby Bello Salinas, Peckar & Abramson, P.C.,
Jennifer Harris, Peckar & Abramson, P.C. and Sahara Mokhtari, Georgetown Law Class of 2025
Ms. Salinas may be contacted at asalinas@pecklaw.com
Ms. Harris may be contacted at jharris@pecklaw.com
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Courts Will Not Rewrite Your Post-Loss Property Insurance Obligations
June 14, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn the preceding
posting, I wrote about making sure you comply with your property insurance policy’s post-loss policy obligations. By failing to comply, you can render your policy ineffective meaning you are forfeiting otherwise valid insurance coverage, which was the situation discussed in the preceding posting. As an insured, you should never want this to occur!
In another case, discussed
here, the property insurance policy had a preferred contractor endorsement. This means that instead of paying the insured insurance proceeds, the insurer could perform the repairs with its preferred contractor. Typically, the insured will pay a discount on their premium for this preferred contractor endorsement. The insurer elected to move forward with the repairs based on the preferred contractor endorsement but the insured performed the repairs on his own and then sold the house. By doing this, the appellate court held the insured rendered his policy ineffective by breaching his own policy (and failing to allow this post-loss obligation to take place). The explicit terms of the policy allowed the insurer to perform the repairs instead of paying the insured insurance proceeds. The court could NOT rewrite the post-loss obligations in the policy by requiring the insurer to pay insurance proceeds when the insurer, per the preferred contractor endorsement, elected to perform the repairs.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Loss of Use From Allegedly Improper Drainage System Triggers Defense Under CGL Policy
February 28, 2018 —
Katherine E. Miller and Michael S. Levine – Hunton Insurance Recovery BlogThe Eleventh Circuit, in
Mid-Continent Casualty Co. v. Adams Homes of Northwest Florida, Inc., No. 17-12660, 2018 WL 834896, at * 3-4 (11th Cir. Feb. 13, 2018) (per curiam), recently held under Florida law that a homebuilder’s alleged failure to implement a proper drainage system that allowed for neighborhood flooding triggered a general liability insurer’s duty to defend because the allegations involved a potentially covered loss of use of covered property.
Reprinted courtesy of
Katherine E. Miller, Hunton & Williams and
Michael S. Levine, Hunton & Williams
Ms. Miller may be contacted at kmiller@hunton.com
Mr. Levine may be contacted at mlevine@hunton.com
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Will Protecting Copyrights Get Easier for Architects?
November 28, 2022 —
Scott L. Baker - Los Angeles Litigation BlogLike any creative business, architects rely on their intellectual property. Their designs are at the center of their work. For example, as we discussed in a previous post, many architects nowadays focus on creating new ways for their building designs to be environmentally friendly and sustainable.
However, nearly every form of intellectual property faces the risk of theft or infringement in the business world.
Architects face unique challenges with their copyrights – as well as risks.
Copyright Issues in the Architecture World
One of the biggest issues, of course, is that there are many aspects of building designs that architects
cannot protect by copyright. This is simply because various details are fundamental in the construction of every building. One person cannot own the rights to such a common design.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
Arizona Supreme Court Leaves Limits on Construction Defects Unclear
August 27, 2013 —
CDJ STAFFThe Arizona Supreme Court has determined that “non-contracting parties may bring negligence claims for construction defects because such claims are not barred by the economic loss doctrine,” as Richard Erikson writes in a Snell & Wilmer Legal Alert.
In the case of Sullivan v. Pulte Home, Pulte had built the home in 2000. The original buyer sold it to the Sullivans in 2003. The Sullivans discovered construction defects in a retaining wall in 2009. The lost their original lawsuit, but the appeals court found that if the Sullivans filed within two years of finding the damage, they could sue. The case then progressed to the Arizona Supreme Court.
Erikson points out that in an amicus brief, a number of parties in the Arizona homebuilding industry argued that “the appellate court’s ruling was commercially irreconcilable with expectations of builders, homeowners, homebuyers, engineers and architects in the construction industry.” Nevertheless, the Sullivans prevailed at court.
Erikson asks what the actual limit on construction defects must be, given that the court found for plaintiffs who discovered construction defects nine years after the home was built. “How many years after the builder finishes a home does it have to plan on defending defect claims—10, 20, 30 years?” He proposes that the Arizona legislature needs to clarify the specific limits.
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Billion-Dollar Power Lines Finally Inching Ahead to Help US Grids
April 03, 2023 —
Brian Eckhouse, Naureen S Malik & Dave Merrill - BloombergThe biggest impediment to the US achieving a cleaner power grid isn't climate deniers or fossil-fuel lobbies; it’s a lack of transmission lines. The country badly needs more conduits to cart wind and solar energy and hydropower to cities.
For more than a decade, multibillion-dollar power-line projects have struggled to advance, slowed or halted by bureaucracy, NIMBYism or general industry stasis. Now suddenly, several are progressing — and with them the prospect of newly unleashed clean energy as well as more resilient grids in the face of ever-dangerous storms and extreme heatwaves.
There’s SunZia in the Southwest, TransWest Express in the Mountain West, Grain Belt Express to the Midwest, and Champlain Hudson Power Express into New York City — projects that together will cost at least $13 billion. Some are now ordering expensive equipment, a signal of their advancement. SunZia and TransWest expect to begin construction this year.
Reprinted courtesy of
Brian Eckhouse, Bloomberg,
Naureen S Malik, Bloomberg and
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Construction Worker Falls to His Death at Kyle Field
January 15, 2014 —
Melissa Zaya-CDJ STAFFThe family of Angel Garcia, a construction worker who fell to his death while working on Texas A&M’s football stadium (Kyle Field), has filed a $100 million lawsuit against six construction companies claiming inadequate safety policies, procedures, and negligence, Jordan Overturf of The Eagle reported.
According to The Eagle, Garcia’s attorneys alleged, “[Garcia] was ‘catapulted off the edge of a fourth-floor ramp’ on the northeast side when a section of concrete fell onto the bucket of the skid steer-loader he was operating. The tractor hit a steel beam during the fall, which exerted enough force to eject Garcia from the tractor.” Garcia did not survive his injuries. The complaint claims the companies involved violated the Occupational Safety and Health Administration rules and regulations. The defendants in the suit were unavailable for comment, according to The Eagle.
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First Circuit Rules Excess Insurer Must Provide Coverage for Fuel Spill
January 18, 2021 —
Syed S. Ahmad & Adriana A. Perez - Hunton Andrews KurthThe First Circuit recently held that a “Special Hazard and Fluids Limitation Endorsement” was ambiguous and therefore there was excess coverage for a fuel spill that occurred after a tanker-truck overturned.
In Performance Trans. Inc. v. General Star Indem. Co., the First Circuit reversed the District Court’s grant of summary judgment in favor of General Star Indemnity Company. The District Court held that the excess policy General Star issued to Performance Trans. Inc. precluded coverage for a spill that resulted in the leaking of thousands of gallons of fuel. The District Court relied on the existence of a total pollution exclusion to bar coverage and held that the policy’s Special Hazards and Fluids Limitation Endorsement could not create an ambiguity that would afford coverage.
Reprinted courtesy of
Syed S. Ahmad, Hunton Andrews Kurth and
Adriana A. Perez, Hunton Andrews Kurth
Mr. Ahmad may be contacted at sahmad@HuntonAK.com
Ms. Perez may be contacted at pereza@HuntonAK.com
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