NAHB News

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Lobbying Tax Deduction for 2018 NAHB Dues

Federal law states that taxpayers cannot deduct from their federal income taxes any portion of an association dues attributable to that association’s “lobbying activities” as an ordinary and necessary cost of doing business.

For 2018, NAHB estimates that the non-deductible portion of national dues—the portion that is applicable to lobbying—is 19%.

Read the full 2018 NAHB Lobby Percentage memo.

November 16th, 2017|Categories: NAHB News, News|0 Comments

2018 ICC Code Adoption Kits Now Available

Building a helmet lying on the construction drawings

As states and jurisdictions prepare to upgrade to the latest building and energy codes released by the International Code Council (ICC), NAHB has already prepared resources so HBAs can suggest cost-effective changes to improve the just-released 2018 editions.

Sign in to nahb.org to download the 2018 I-Codes Adoption Kit, which consists of three parts:

  • Significant changes that were made in the 2018 I-Codes from the 2015 editions
  • Cost impact of adopting the 2018 IRC to the 2015 edition (Here’s a hint: It’s good news)
  • NAHB-suggested amendments to improve the codes’ practicality and cost effectiveness

The ICC “model” codes are designed with the intent that they can be amended by the state or local jurisdiction to take into account local considerations, such as geography, climate and local practices.

NAHB has developed suggested amendments for both single-family builders and multifamily developers that may improve the model codes adopted in your jurisdiction.

Questions on the particulars? Call 800-368-5242 and reach the NAHB Construction, Codes and Standards staff on the following extensions:

  • Neil Burning, x8564. Vice President
  • Craig Drumheller, x8565. Director: Energy and Green
  • Gary Ehrlich, x8545. Director: Structural, Resilience
  • Dan Buuck, x8366. Senior Program Manager: Fire, Egress, Electrical
  • Don Surrena, x8574. Senior Program Manager: Plumbing, Mechanical, Fuel Gas
  • Cesar Lujan, x8303. Program Manager: Fire-resistant Construction, Accessibility,Use and Occupancy
  • Joel Martell, x8566. Program Manager: Energy and Green
November 14th, 2017|Categories: NAHB News, News|0 Comments

Senate Tax Reform Bill a Better Starting Point

House on a US tax form schedule A

While NAHB still opposes the current House tax reform legislation, the Senate bill released last night represents a big step forward.

Unlike the House bill, the Senate package provides meaningful tax relief for small businesses and keeps the complete Low-Income Housing Tax Credit program in place.

However, NAHB believes that both the House and Senate bills fall short in maintaining an effective homeownership tax incentive.

NAHB will work with lawmakers to achieve this goal as the legislative process advances by urging senators to support an amendment on the Senate floor to create a homeownership tax credit.

Improvements in the Senate Bill

Homeownership

  • Keeps the mortgage interest deduction cap at $1 million. It is lowered to $500,000 in the House bill.
  • Retains the mortgage interest deduction for second homes. This tax benefit was eliminated in the House bill.
  • Maintains the student loan interest deduction; the House bill does not.

Multifamily

  • The Senate proposal, like the House bill, would retain the Low-Income Housing Tax Credit in its current form. But while the House proposes to eliminate private activity bonds (PABs), effectively abolishing 4% credits, the Senate bill would retain PABs. This is a major win for affordable housing.
  • Allows like-kind exchanges for real property; the House bill does, also.
  • Shortens the multifamily and commercial depreciation period to 25 years
  • Makes no change to carried interest; retained in the House bill as long as the asset is held for three years.

Business

  • Provides a 17.4% deduction against business income for pass-throughs.
  • Recognizes the importance of the business interest deduction by allowing small firms with less than $15 million in gross receipts and, by election, any construction or development firm to retain this deduction.

A significant downside to the Senate bill: With the doubling of the standard deduction and elimination of the deduction of property taxes, the Senate package fails to provide sufficient middle-class housing incentives. Therefore, NAHB is still pursuing a plan that would provide a robust, broadly claimed homeownership tax credit that would help up to 37 million additional home ownerswho do not currently itemize.

Concerned members of the home building community can help by calling their Senators at 202-224-3121 and asking them to support adding a homeownership tax credit amendment to the tax bill when it hits the Senate floor.

For more information, contact J.P. Delmore at 800-368-5242 x 8412.

November 14th, 2017|Categories: NAHB News, News|0 Comments