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NAHB Seeks Enhanced and Expanded NOL Rule
NAHB Chairman Joe Robson last week issued a press statement highlighting the association's ongoing efforts to expand the net operating loss (NOL) carryback provision that was included in the economic stimulus package enacted into law in February.
"NAHB supports the fullest and most robust NOL carryback provision possible in order to avert more costly layoffs in construction and other industries that would take an even worse toll on the nation's economy," Robson said. The statement was also sent to NAHB Executive Officers.
Since passage of the economic stimulus legislation, the NAHB staff has been busy working with both the Congress and the Obama Administration to find opportunities to expand the NOL provision beyond that contained in the American Recovery and Reinvestment Act (ARRA). Among other issues, the ARRA provision contained a gross receipts test of $15 million that excludes many home builders who need NOL carryback rule relief.
Earlier this month, NAHB staff members met with the Department of Treasury’s Office of Tax Policy and the staff of the Joint Committee on Taxation, which is the technical advisory body for the congressional tax-writing committees, to advocate an expanded NOL carryback for all businesses. During the meetings, NAHB stressed that the $15 million gross receipts test is very low, and effectively excludes builders who construct more than 45 homes a year, as well as suppliers and other related businesses in the home building sector.
In addition, NAHB has been working with its Net Operating Loss Coalition partners, which consists of a group of about 75 business organizations, to expand the NOL carryback. The association recently provided data on job losses in the residential construction sector as part of the effort to inform Congress of the severe economic downturn that home builders have been experiencing since late 2005.
In the past, NAHB has provided similar economic statistics on the decline in home building and its effect on the local and national economies to industry allies and members of Congress.
NAHB has always opposed abuse of the NOL provision and will continue to do so, and will work with policymakers to ensure that there are measures that protect and benefit all of the membership and ensure a level and competitive business environment, Robson indicated.
For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421.
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