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.”
Kodiak signs up for a special day of charity
Kodiak Building Partners will give back to the communities it serves during this holiday season.
The Denver, Colo.-based collection of pro dealers announced that it will take part in #GivingTuesday, an international day taking place the Tuesday after Thanksgiving that encourages philanthropy and generosity while stepping away from the commercialism of the holidays. Kodiak said that each of its companies and employees created their own charitable projects for #GivingTuesday.
The organizations that will benefit from Kodiak’s projects include: Toys for Tots, St Jude’s Children’s Research Center, New England Home for Little Wanderers, Laredo School of Contemporary Dance Pre-Professional Program, Caney Creek Conservation Foundation, Coastal Bend Food Bank Weavers of Love, St. Vincent de Paul Society at St Cecilia Catholic Church, Christ’s Kitchen, Homes for Displaced Marlins, Habitat for Humanity, Children’s Health of Dallas, Chester County Futures, Vrain Safe Shelter, the Salvation Army, Denver Rescue Missions, and Detroit Dog Rescue.
“Kodiak Building Partners is very intentional in its culture of giving,” said Steve Swinney, CEO of Kodiak Building Partners. “#GivingTuesday kicks off not only the traditional charitable season, but within our companies, service projects are mapped for all of 2018. As all of our companies are locally driven, we choose to give back to those communities.
“When we are successful, everyone should benefit. We like to ‘do well, so that we may do good.’ A side benefit of our giving projects is the camaraderie that is cultivated among employees and deeper employee engagement,” Swinney said.
Kodiak operates 53 locations in Texas, Florida, Arizona, Colorado, Michigan, Delaware, Maryland, and Massachusetts.