BMD acquires Moehl Millwork
Home Factories Inc., a subsidiary of Building Materials Distributors Inc., has acquired Moehl Millwork.
Based in Ankeny, Iowa, Moehl Millwork is a wholesale distributor of millwork products, serving builders, contractors and pro dealers in the Kansas City metro area along with the entire state of Iowa. It supplies premium windows, doors, moulding and cabinets for commercial and residential projects, according to BMD.
“Moehl has created a strong brand name and reputation for exceptional service. We think the Moehl team will be a great addition to our employee owned culture,” said Jeffrey Gore, president and CEO of BMD. “Moehl adds to our already significant presence with strong channel partnerships that expand and strengthen our position and open up new markets and opportunities. The synergies in millwork product lines and in other specialty building product categories are significant and will bring additional value to current customers of Moehl and BMD.”
Donn Rudd, Moehl president and CEO, said that Moehl employees will have an opportunity for an ownership stake in the company with all employees and management remaining in place after the acquisition.
“Under this partnership, we will maintain and grow our existing business lines, and now be able to stretch into additional building product opportunities,” Rudd said.
Based in Galt, Calif., BMD is a manufacturer and distributor of specialty building products and millwork. Prior to the acquisition, the company maintained operations in six states including California, Colorado, New Mexico, North Carolina, Tennessee and Washington.
NLBMDA remains concerned over tax changes
Following the Senate’s passing of the Tax Cuts and Jobs Act, the National Lumber and Building Material Association remains about changes to state and local tax (SALT).
The new legislation will cease itemized deductions for state and local income and sales taxes, but allows individuals to deduct up to $10,000 for property taxes. According to the NLBMDA the code changes will have a negative impact on those living in areas with higher local and state taxes. The association also said it will be more difficult for businesses in those areas to retain and attract workers.
The bill also modifies mortgage interest deductions by eliminating the home equity loan interest deduction. Currently, interest payments on up to $100,000 of home equity loan debt are eligible for deduction. The NLBMDA said it supports the legislation retaining the deduction for interest payments on up to $1 million of mortgage debt, as well as the deduction for second homes.
The NLBMDA’s complete response to the Tax Cut and Jobs Act can be found here.
NLBMDA urges tax reform action
The National Lumber and Building Material Dealers Association (NLBMDA) is urging its members to jump into action by contacting their U.S. Senator regarding the Tax Cuts and Jobs Act.
The Senate is expected to vote on the bill as early as today. According to the NLBMDA, the legislation eliminates the state and local tax (SALT) deduction, which would negatively affect residential housing, the lumber and building material (LBM) industry, and the economy overall.
In statement issued today, the NLBMDA said it is “in strong opposition to eliminating the SALT deduction. These changes would harm individuals living in areas with higher local and state taxes, and make it more difficult for businesses in those areas to retain and attract workers.”
Other components of the legislation include the amount of mortgage debt eligible for the interest deduction remaining at $1 million and includes the deduction for second homes. However, the interest deduction on home equity loan debt up to $100,000 is eliminated, the NLBMDA says.
The NLBMDA said it strongly supports several provisions in the legislation, including lowering the corporate income tax rate to 20 percent, and the immediate write-off of capital purchases (excluding land) through 2022. Making permanent the full expensing of business investments will provide businesses with greater certainty and predictability.
Unlike the House-passed tax reform bill, the Senate legislation does not repeal the estate tax. Although the Senate bill does double the exemption levels ($11.2 million for individuals, $22.4 million for couples) and indexes for inflation, the NLBMDA said.
“Tax reform is needed to increase economic growth and opportunity,” the NLBMDA said. “Unfortunately, the elimination of the SALT deduction in the Tax Cuts and Jobs Act places too much burden on homeowners living in higher cost areas and would harm residential housing and construction.”