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Tax Breaks, New Minimum Wage, Katrina Relief in War Bill
An increase in the minimum wage and business tax provisions are included in a bill passed by Congress last week to fund the military and the war in Iraq.
A previous version of the legislation was vetoed by the President because of language setting deadlines for the U.S. withdrawal from Iraq. That language was taken out of this version and is now on its way to the President for his expected signature.
The bill will increase the minimum wage from $5.15 to $7.25 an hour over the next two years and contains $4.8 billion in corresponding business tax breaks.
Of special importance to home builders, the measure will increase the amount of investment that small businesses may be immediately and fully deducted under Section 179 expensing from $100,000 to $125,000 and lift the investment-based phase-out threshold from $400,000 to $500,000.
The legislation also includes key provisions for the repair and reconstruction of affordable housing in the GO Zone, Gulf Coast areas that were hit particularly hard by Hurricanes Katrina, Rita and Wilma. Specifically, the legislation:
- Extends until Dec. 31, 2010 the placed-in-service deadlines for properties that received an allocation of Low Income Housing Tax Credits within the GO Zone
- Extends the difficult-to-develop-area designations in this same area until Dec. 31, 2010
- Allows properties in this area that are placed-in-service by Dec. 31, 2010 to use 9% housing credits with “disaster relief” Community Development Block Grant funds loaned at below-market rates
- Waives the Mortgage Revenue Bond program’s 20-year and existing walls rules for qualified rehabilitation in the GO Zone for owner-financing provided after enactment and before Jan. 1, 2011
- Requires the Government Accountability Office to study the practices employed by state and local governments in allocating and utilizing tax incentives provided as part of the GO Zone Act of 2005 and to report to Congress on its findings within one year of enactment
For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421.
Plan to Attend the 2007 NAHB Legislative Conference on June 6
The 2007 NAHB Legislative Conference provides a unique opportunity for builders to speak directly with their members of Congress and to take a stand on the issues that affect their businesses and bottom line.
The day-long conference is on Wednesday, June 6 and coincides with the NAHB spring board meeting in Washington, D.C.
Attending the 2007 Legislative Conference offers NAHB members an unparalleled opportunity to:
- Lobby members of Congress to protect your business
- Establish lasting relationships with your elected federal officials
- Share builder concerns in a national forum in Washington, D.C.
- Learn the latest policy developments on the key issues affecting your business
- Demonstrate your industry’s commitment to responsible policies, pragmatic reforms, effective programs and providing the resources necessary to meet our nation’s ongoing housing needs
- Network and share business strategies with your peers
- Learn how to be an effective advocate for your business and your industry
- Make your views known on Capitol Hill
- Do your part to ensure that NAHB’s issues are heard by Washington policymakers
- Galvanize a united front on Capitol Hill
For more information or to register, click here.
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