NLBMDA makes legislative push on Capitol Hill
WASHINGTON — Dozens of dealer members from the National Lumber and Building Material Dealers Association (NLBMDA) charged Capitol Hill this morning to push for legislation that could positively impact prodealers.
Key priorities at the NLBMDA’s 2024 Legislative Conference are support for the Credit Card Competiton Act (H.R.3881/S.1838), the Affordable Housing Credit Improvement Act (AHCIA) (H.R.3238/S.1557), and the Tax Relief for American Families and Workers Act (H.R.7024).
“This is where your voice has a lasting and meaningful impact,” said Jacob Carter, director of government affairs for the NLBMDA.
Carter delivered his statement while presenting a policy briefing to dealers the day before would meet with members of Congress.
“They need to hear that story from small business owners, they need to hear that story from LBM dealers,” Carter said regarding the Credit Card Competition Act.
The Credit Card Competition Act is a bipartisan bill that addresses excessive credit card swipe fees for small businesses by allowing access to more credit card payment network options.
Visa and MasterCard control 80% of the U.S. credit card market and hold a duopoly over credit card processing, charging merchants more than 2% of the customer’s total bill each time a credit card is used to make a purchase. According to the NLBMDA, this bill would fix a "broken market that has allowed Wall Street megabanks and global card networks to block competition and unfairly profit at the expense of small retailers and their customers."
Currently, Visa and Mastercard set the swipe fees charged by banks that issue their credit cards and block transactions from being processed over other networks that could do the same job with lower fees.
Credit and debit card swipe fees have more than doubled over the past decade and soared to a record $172 billion in 2023, up from $161 billion in 2022 and $138 billion in 2021.
Carter said the legislation could save small businesses about $11 billion per year. Additionally, the average family pays nearly $1,000 per year in swipe fees.
More housing and jobs
The Affordable Housing Credit Improvement Act is a bipartisan bill that strengthens the Low-Income Housing Tax Credit (LIHTC) to increase investment in affordable housing and build 2 million new homes across the country over the next decade. The bill would also support nearly 3 million jobs while adding $120 billion in additional tax revenue and more than $346 billion in wages and business income.
This bill currently has 220 House and 34 Senate cosponsors, and has received backing from the National Association of Home Builders (NAHB).
NLBMDA President and CEO Jonathan Paine told members, that it was urgent that they help push the bill when speaking with their elected officials.
"Everyone is on board with this," Paine said. "It just needs to get to the floor for a vote - it will pass."
Tax breaks for businesses
The Tax Relief for American Families and Workers Act is a $78 billion bipartisan tax package that retroactively extends several key business tax breaks and expands the Low-Income Housing Tax Credit (LIHTC) through 2025. The bill also enhances the Child Tax Credit for families.
Businesses would benefit from the plan as well and allows them to claim 100% bonus depreciation for investments in machines, equipment, and vehicles for tax years 2023, 2024, and 2025.
From 2018 until 2022, businesses could claim 100% bonus depreciation for qualifying property. This rate decreased to 80% in 2023, and will drop to 60% in 2024, 40% in 2025, 20% in 2026, and 0% in 2027.
Get involved
During the traditional Washington Briefing Breakfast, members had an opportunity to listen to policymakers, including Rep. Pete Stauber (R-MN) and Rep. Jake LaTurner (R-KS).
Stauber urged dealers to "stay engaged" and "push your legislators."
While discussing the current state of high inflation, Stauber noted that wages aren't keeping up with the pace and $240 billion in additional regulations have been placed on small businesses. "And you wonder why we're stretched?," Stauber asked the audience.
Under the EPA, the Biden Administration set new emissions standards for heavy-duty trucks. The move requires that electric semi-trucks make up an increasing share of manufacturer sales from 2027 through 2032.
When asked about the move, LaTurner described it as "divisiveness" and said it was an example of a "broken federal government trying to manipulate the marketplace."