Legislative wins for lumberyards
When it comes to Congress, there is a great deal to complain about. But an end-of-year legislative package presents progress, according to the National Lumber and Building Material Dealers Association.
The action completed Friday by will benefit lumber dealers in several ways, according to the NLMBDA. The association spelled out the benefits of (H.R. 2029)
• 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 healthcare 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.
The NLBMDA wrote: "NLBMDA is pleased that Congress has advanced policies that are priorities for the lumber and building material industry. This legislative victory would not have been 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.
“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.”