NLBMDA Applauds Year-End Legislation
The National Lumber and Building Material Dealers Association (NLBMDA) welcomes action completed Friday by Congress and President Obama that will benefit lumber dealers. The legislation (H.R. 2029) had strong bipartisan support and includes the permanent extension of the Section 179 deduction, multi-year extensions of tax incentives for energy efficient improvements and bonus depreciation, suspension of the Health Insurance Tax (HIT), and continued relief from commercial trucking rules.
The year-end package funding the federal government and extending expired tax incentives is a major victory for the lumber and building material industry and will benefit the American economy. Most notably, the bill permanently extends the limit on the Section 179 deduction to $500,000. Earlier this year in a survey of NLBMDA members, 58 percent said they used the Section 179 deduction that benefits small and medium-sized businesses.
Provisions in the overall legislation that will benefit lumber and building material industry include:
Permanent Extension of Section 179 Deduction: Permanently extends the limit for the Section 179 Deduction to $500,000, which allows small businesses to deduct the full purchase price of qualifying property and software place in service;
Bonus Depreciation Extension through 2019: Extends bonus depreciation for another five years (2015-2019). For 2015-2017, it allows business a 50% bonus depreciation for property placed in service. The amount phases down to 40% in 2018 and 30% in 2019;
Energy Efficiency Tax Incentives Extended Through 2016: Extends the tax credit for energy efficient improvements for existing residential homes (25C), tax credit for energy efficient improvements for new residential homes (45L), and deduction for energy efficiency improvements for commercial buildings.
Suspension of the Health Insurance Tax in 2017: One-year suspension of the Health Insurance Tax (HIT) in 2017. The tax is levied annually on fully-insured health care plans and is offered by many small and medium-size businesses. In 2015 and 2016, the federal government is expected to collect $22.6 billion from the HIT.
Continued Relief from Hours of Service Rules for Commercial Trucking: Continues the suspension of the 34-hour restart requirement as part of the Department of Transportation’s (DOT) Hours of Service (HOS) rules regulating the amount of time a commercial truck driver can spend behind the wheel.
NLBMDA is pleased that Congress has advanced policies that are priorities for the lumber and building material industry. This legislative victory would not have possible without our dealers who continue to remind their lawmakers about the need for common-sense policies that will keep the economy on a path of sustained growth.