Government Spending leads to Automation Opportunites

$41 Million Small business Capital Investment

This is a general deduction that any manufacturer could use to improve automation and it will certainly improve the return on investment. This provision will allow businesses to deduct up to $250,000 for capital investments made in 2009, with a total cap of $800,000. The limits were temporarily increased by Congress last year for investments made in 2008.

 

Over $10 Billion for Water & Waste Water

A significant amount of money is targeted at water and waste water. Upgrades in this area should translate to increased demand for automation, control, and instrumentation products for new or existing equipment.

• $6.0 Billion - Provide money for wastewater treatment projects and projects that improve the quality of drinking water.
• $1.4 Billion - Provide grants and loans for water supply and waste disposal programs in rural areas.
• $4.6 Billion - Includes $2 billion for construction projects like dam repair and flood control, $1.9 billion for maintenance, $500 million for projects along the Mississippi River and $100 million to clean up early atomic energy facilities.

$48 Billion for Transportation

Transportation is far reaching and much of it will have a secondary effect on automation and controls. The money for highway and bridges should stimulate the need for more steel, fabricated steel and concrete, which in turn has the potential to create secondary demand from the producers of these products. The money going into rail transportation could certainly increase the demand for new or improved automation & control systems at the manufacturers of rail road cars and rail cars. Rail cars and rail systems require communications, automation, and control systems. Both new and retrofit rail projects should require increased electrical power switching and monitoring. Airport improvements also represent an opportunity for automation and control.

• $27.5 Billion - Provide money to states to repair or construct highways or bridges, reallocating money that is not spent quickly.
• $9.3 Billion - Expand passenger rail capacity and make grants for high-speed rail projects, including Amtrak
• $8.4 Billion - Provide grants to states for public transit infrastructure investment, reallocating money that is not spent quickly.
• $1.5 Billion - Provide competitive grants for state and local transportation investments.
• 1.3 Billion - Make grants to airports to improve safety or increase capacity; repair Federal Aviation Administration equipment and facilities.

 

Over $50 Billion for Energy

Energy is one of the hot topics with significant money allocated. Using these funds for automation and controls could be the best investments made as a result of the stimulus program. There are many opportunities to lower the United States dependency on foreign energy and improve efficiency. The possibilities include new transmission lines, switchgear, integrated power automation and monitoring, pollution control & monitoring, sub-metering, and building automation.

• $14.0 Billion - Extend production tax credit for wind energy facilities through 2012 and other renewable energy facilities through 2013. Allow renewable facilities to claim investment tax credit instead of production tax credit. Remove cap on investment tax credit for small wind property. Allow renewable energy producers to claim a 30 percent cash grant from the Treasury Department in lieu of the 30 percent investment tax credit.
• $11.0 Billion - Make the electric grid "smarter," by improving communication so electricity can be distributed and used more efficiently.
• $6.3 Billion - Provide grants to cities, counties and states to increase energy efficiency.
• $6.0 Billion - Guarantee loans for renewable energy or electricity transmission projects that avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases.
• $4.5 Billion - Increase energy efficiency in federal buildings.
• $4.0 Billion - Repair and modernize public housing units.
• $3.4 Billion - Invest in fossil energy Includes money for near-zero emissions power plants, clean coal technology and carbon capture.
• $2.0 Billion - Support battery manufacturing with grants to manufacturers of advanced battery systems and car batteries in the United States.
• $1.6 Billion - Incentive for advanced energy investment. Establish a new 30 percent investment tax credit for manufacturers of advanced energy property, which may include technology for the production of renewable energy, energy storage, energy conservation, efficient transmission and distribution of electricity, and carbon capture and sequestration.
• $1.4 Billion - Authorize more state and local bonds for energy-related purposes.  Authorize an additional $1.6 billion in renewable energy bonds and $2.4 billion in energy conservation bonds to finance state and local government projects.
• $400 Million - Provide grants to states for energy-efficient vehicles and infrastructure - includes $300 million to help state and local governments purchase hybrid vehicles and $400 million to start electrical infrastructure projects that encourage the use of electric vehicles.
• $300 Million - Replace older vehicles owned by the federal government with hybrid and electric cars.
• $4.2 Billion - Make military facilities more energy efficient

 

Over $9 Billion for Buildings & Parks

These projects at a minimum are likely to require new electrical power systems.

• $4.0 Billion - Repair and modernize public housing units.
• $3.1 Billion - Repair and improve facilities on public lands and parks
• $2.8 Billion - Provide additional money to the Department of Homeland Security - includes $1 billion for airport baggage screening equipment as well as money for border security and building fire stations.
• $2.0 Billion - Finance renovations and technology upgrade at community health centers.
• $1.2 billion - Construct and repair veterans' hospitals and cemeteries.
• $249 million - Finance improvements to Agriculture Department infrastructure Includes money for renovations, security improvements and technology upgrade at various agencies under the Agriculture Department.
• $150 million - Provide loans for rural developments. Support $1.17 billion in guaranteed loans and $67 million in grants to help rural communities develop essential facilities, like hospitals.