|
Senate Health Care Bill Up in Air as Reid's Christmas Deadline Nears
With just one week left before his self-imposed Christmas deadline, Senate Majority Leader Harry Reid (D-Nev.) is still struggling to nail down the 60 votes he needs to pass health care legislation. With Republicans still voicing unanimous opposition to H.R. 3590, the Patient Protection and Affordable Care Act, Reid must gain the consent of all 60 senators who caucus with his party, including Independents Joe Lieberman of Connecticut and Bernie Sanders of Vermont.
NAHB has signed onto a letter with the Small Business Coalition for Affordable Healthcare in opposition to H.R. 3590. The letter, which was sent to every senator on Dec. 10, notes that the reform measures in the legislation “fall short of long-term meaningful relief for small business. Any potential savings from those reforms are more than outweighed by the new taxes, new mandates and expensive new government programs included in the bill.” Specifically, NAHB and other members of the small business coalition cited opposition to several components of the bill: An employer mandate that encourages job cuts, not job creation; a small business health insurance tax; new paperwork burdens and costs for small businesses; no meaningful liability reform; an unprecedented increase in the Medicare tax; and health insurance exchange plans that lack affordable choices.
Meanwhile, this week Senate moderates have taken the upper hand in the debate. Reid appears ready to strip the legislation of a public option and an early Medicare buy-in, as Lieberman demanded in order to support the bill. However, this has infuriated the liberal-leaning Sanders, who expressed indecision on which way he will vote on the bill. Furthermore, Sen. Ben Nelson (D-Neb.) is not yet onboard, as he remains concerned about abortion language.
Further adding to the confusion, lawmakers are still awaiting word from the Congressional Budget Office on the cost of the bill. NAHB and others in the business community are encouraged by a package of amendments to be offered by some freshman senators, most of which address several of the concerns expressed in the coalition letter. However, it is still unclear whether these proposals will be included in the final manager’s amendment.
If Reid is able to muster the 60 votes to move forward by Christmas, this would allow a House-Senate conference to deliberate the differences between their respective bills during the next few weeks. The measure would then move to a final vote in each chamber (requiring only a simple Senate majority) that would allow President Obama to sign legislation into law before the State of the Union address in late January.
NAHB continues to monitor developments closely. To view the legislation, click here and type H.R. 3590 in the box in the center screen. For more information, contact Carlos Gutierrez at 1-800-368-5242, ext. 8242.
|
 |
Bipartisan Home Energy Efficiency Bill Introduced in House
With the strong backing of NAHB, Reps. Dave Reichert (R-Wash.), Ron Kind (D-Wash.), Earl Blumenauer (D-Ore.), Geoff Davis (R-Ky.), Tom Perriello (D-Va.) and Chris Lee (R-N.Y.) have introduced H.R. 4226, the Expanding Building Efficiency Incentives Act of 2009. NAHB worked closely with the lawmakers as they crafted the comprehensive package of energy efficiency tax incentives designed to reduce energy costs families and businesses, promote innovation and conservation, and create future energy jobs. The bill contains five key tax incentives for energy efficient building:
- New Energy Efficient Home Tax Credit (45L): Increases the amount of the credit to $5,000; allows internal components of a house, in addition to the building envelope, to be eligible for reaching the 50 percent above-code threshold; allows the credit to be claimed against the Alternative Minimum Tax; and extends it to Dec. 31, 2015.
- Deduction for Energy Efficient Commercial Buildings (179D): Increases the amount of the deduction from $1.80 per square foot to $3.00 per square foot, allows it to be used for construction of energy efficient condo units in buildings 4 stories or more above grade and extends the deduction until Dec. 31, 2015.
- Residential Property Energy Credit (25C): Allows installation costs presently disqualified to be allowable for the credit amount, increases the lifetime cap on the credit from $1,500 to $5,000 and extends it to Dec. 31, 2015.
- Home Energy Rating Credit (25E): Provides a $200 credit for the cost incurred for a home energy rating.
- Home Performance Auditor Certification Credit (45R): Provides a $500 credit for training to be certified to perform home energy ratings.
The bill expands on companion legislation introduced in the Senate by Sens. Olympia Snowe (R-Maine) and Jeff Bingaman (D-N.M.). To view the legislation, click here and type the bill number in the center screen box. For more information, contact Greg Brown at ext. 8421.
[return to top]
|
|
Senate Tax Extender Plan Likely to Omit “Carried Interest” Proposal
NAHB this week sent a letter to Senate leaders urging the Senate to include an extension of the Low Income Housing Tax Credit (LIHTC) exchange program and the New Energy Efficient Homes Credit (45L credit) in pending legislation that would extend popular tax breaks that are due to expire at year-end. The letter also voiced strong opposition to a change in the taxation of “carried interest” as a revenue offset to pay for the expiring tax breaks. This change would significantly impact both existing and future commercial and multifamily real estate properties and is opposed by NAHB as well as a broad coalition of commercial real estate organizations. The House last week passed H.R. 4213, legislation that contains an extension of the LIHTC exchange program. However, the House bill would also allow the 45L tax credit to expire and would increase the tax on capital gain income generated by a carried interest in a partnership from the current rate of 15 percent to as high as 35 percent.
The Senate has rejected the carried interest proposal in the past and the chamber has proposed using a different revenue offset to pay for its tax extenders legislation, putting it at odds with the House on how to proceed. With the Senate still mired in the health care debate and the House having left for the year, it appears that extenders will have to be passed retroactively sometime in 2010, which is not unprecedented. The Senate has not made its tax extenders bill public yet, so NAHB will continue to press for inclusion of our LIHTC proposals and the 45L credit in the package while reiterating our strong opposition to using a change in the taxation of carried interest as the revenue offset. For more information, contact Greg Brown at ext. 8421.
[return to top]
|
|
Estate Tax: Here Today, Gone Tomorrow?
As Congress prepares to depart for the year, Senate Republicans have blocked a plan by Democrats to extend the federal estate tax for two months at 2009 rates ($3.5 million individual exemption, $7 million per couple and a 45 percent tax rate on amounts above those exemption levels). This means that under current law, the estate tax will disappear in 2010 and return in 2011 with a $1 million exemption and a 55 percent top rate.
The House earlier this month passed H.R. 4154, legislation that would make permanent the 2009 estate tax provisions. Senate Republicans failed to agree to this approach, even on a temporary basis. Instead, they called for a more generous permanent change that would increase the exemption to $5 million per individual and $10 million per couple, at a 35 percent tax rate above those levels. As a result, it is uncertain whether lawmakers will move to retroactively resurrect some type of estate tax in 2010 or look for a permanent fix to take place in 2011. For more information, contact Greg Brown at ext. 8421.
[return to top]
|
|
House Democrats Introduce Comprehensive Immigration Bill
Firing the first salvo in what is expected to be a contentious immigration debate in 2010, Rep. Luis Gutierrez (D-Ill.) and 87 cosponsors this week introduced comprehensive immigration reform legislation that contains provisions regarding increased employer enforcement and employment verification and opening a path to legal status for millions of undocumented workers. The bill, titled the Comprehensive Immigration Reform for America’s Security and Prosperity Act of 2009 (CIR-ASAP), calls for a federal commission to study the best approach for the “future flows of workers.”
NAHB opposes the use of a politically-appointed commission to decide visa numbers, and instead supports a market-based system that would determine the number of allowable work visas each year and adjust upwards and downwards to reflect the economic needs of the nation. Additionally, the Gutierrez legislation contains language which NAHB strongly opposes that would make all U.S. employers liable for the work authorization status of employees of any other entity with whom they have any kind of “contract, subcontract, or exchange." NAHB believes that all U.S. employers should be held accountable for the work authorization status of their direct employees, and not for the employees of other companies.
In announcing the bill, Gutierrez conceded it likely will not be the vehicle for an immigration overhaul coming out of the House. The White House has distanced itself from any association with the drafting of the Gutierrez measure. Meanwhile, Rep. Zoe Lofgren (D-Calif.), who chairs the House Judiciary Committee’s immigration subcommittee, is drafting what will be considered the lead bill in the House. In the Senate, Sens. Charles Schumer (D-N.Y.) and Lindsey Graham (R-S.C.) are working on a separate bill that could be unveiled sometime early next year. House leadership has indicated that the chamber will not take up immigration reform legislation until the Senate passes its own bill first, making the progress in the Senate negotiations on bill language the one to watch for now. For more information, contact Jenna Hamilton at ext. 8407.
[return to top]
|
|
|
