For Immediate Release: January 6, 2009
Contact: Michael O’Brien, (202) 367-1280
[Washington, DC] – As the 111th Congress convenes today, the National Lumber and Building Material Dealers Association (NLBMDA) called on President-Elect Obama and the leaders of the new Congress to act swiftly in passing a comprehensive economic stimulus plan to help revive the depressed housing economy.
In a letter delivered to the President-Elect and the four leaders of the House and Senate, NLBMDA President and CEO Michael O’Brien urged the inclusion of several key industry proposals in the forthcoming economic stimulus package, including:
- Extending the net operating loss (NOL) carryback from two years to five, to provide critically needed cash to struggling businesses. In the past, Congress has successfully used NOL carryback relief as a ready tool to help lift the economy out of recession. Most recently, the Job Creation and Worker Assistance Act of 2002 provided a five-year carryback for 2001 and 2002 NOLs and corresponding alternative minimum tax (AMT) NOL relief.
- Enhancing the Home Buyer Tax Credit to all primary residences purchased between April 2008, and December 2009, and increase the size of the credit to up to 10% of home price up to maximum of $22,000, depending on geography. Home buyer tax credits have a proven track record of reducing excess inventory and stabilizing home prices.
- Providing access to discounted 30-year fixed rate mortgage financing that would encourage eligible home buyers to enter the market.
- Extending bonus depreciation and increased Section 179 expensing provisions for at least one year, to further promote investment during the current economic downturn.
“We are encouraged by recent statements from Congressional leaders and transition officials regarding the possible inclusion of the NOL carryback and bonus depreciation proposals NLBMDA has been promoting,” said O’Brien. “But we also feel just as strongly that Congress must pursue an aggressive housing stimulus measure to reduce housing inventories, stem foreclosures and restore consumer confidence. Housing is the key to the economic recovery.”
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The National Lumber and Building Material Dealers Association (NLBMDA) represents its members in the national public policy arena, with emphasis on efforts to 1) promote the industry and educate legislators and public policy personnel; and 2) assist legislative, regulatory, standard-setting and other government or private bodies in the development of laws, regulations and policies affecting lumber and building material dealers, its customers and suppliers. Founded in 1917, the Federation has over 6,000 members operating single or multiple lumber yards and component plants serving homebuilders, subcontractors, general contractors, and consumers in the new construction, repair and remodeling of residential and light commercial structures.
