Recovery Bill Doesn’t Go Yard, But Gets to First Base: NLBMDA
From PROSALES, By Craig Webb: All manner of groups will weigh in now that the American Recovery and Reinvestment Act is about to get President Obama’s signature.
It’s not what we wanted, but since our membership dues pay good money for lobbying on Capitol Hill, you can be sure that we got our money’s worth from those efforts.
Really, what you can be sure of is that the moment the $15,000 tax credit for home buyers of new and/or existing homes came off the table, and the 4% or less home mortgage buy-down got eliminated from consideration, many home building and remodeling related businesses felt their hearts sink. Ask many of he proprietors of these companies do they want a government hand-out, and they’ll tell you absolutely not. What they do want is for people to be able and willing to buy houses again, and this is what they doubt after Congress wiped out the Fix Housing First agenda.
Lumber yards will lose from this bill, despite some of the jobs, spending, and housing specific programs that the Democrats left in it. Here’s ProSales editor Craig Webb in a day-after analysis of plusses and minuses of the legislation.
The National Lumber and Building Material Dealers Association’s (NLBMDA) statement today on the bill mixed pleasure and disappointment with a resolution to continue lobbying for housing industry relief. NLBMDA applauded how the American Recovery and Reinvestment Act includes an extension of bonus depreciation and Section 179 direct expensing as well as creates, continues, or expands tax credits for energy efficiency. But it then said: “We are disappointed that Congress did not adopt the more robust $15,000 homebuyer tax credit, limited the application of the net operating loss carryback provision, and rejected an amendment to provide 4% mortgage financing under certain circumstances.”
The statement also quoted NLBMDA chairman Paul Hylbert as saying the group “will continue to work with Congress, the Administration, our housing industry allies and our members to achieve an effective housing recovery plan as soon as possible so that we can develop, once again, a robust and vibrant housing market as a critical element of a strong economy.”
Lots of groups hope the stimulus works, but aren’t exactly betting on it.
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