NLBMDA urges President, Congress to help revive housing industry

The National Lumber and Building Material Dealers Association (NLBMDA) is calling upon President-Elect Obama and the leaders of the new Congress to act swiftly in passing a comprehensive economic stimulus plan to help revive the depressed housing economy.

As the 111th Congress convened in Washington Dec. 6, letters were delivered to Obama and the four leaders of the House and Senate in which NLBMDA president and CEO Michael O’Brien urged the inclusion of several key industry proposals in the forthcoming economic stimulus package, including the following:

• Extending the net operating loss (NOL) carryback from two years to five to provide critically needed cash to struggling businesses. • Enhancing the Home Buyer Tax Credit to all primary residences purchased between April 2008 and December 2009, and increasing the size of the credit to up to 10 percent of the home price up to a maximum of $22,000, depending on geography.  • Providing access to discounted 30-year fixed rate mortgage financing that would encourage eligible home buyers to enter the market. • Extending bonus depreciation and increased Section 179 expensing provisions for at least one year to further promote investment during the current economic downturn.

“We are encouraged by recent statements from Congressional leaders and transition officials regarding the possible inclusion of the NOL carryback and bonus depreciation proposals NLBMDA has been promoting,” O’Brien said. “But we also feel just as strongly that Congress must pursue an aggressive housing stimulus measure to reduce housing inventories, stem foreclosures and restore consumer confidence. Housing is the key to the economic recovery.”