EPA Schedules Environmental Listening Sessions
The Administration is offering the public a chance to tell them what they think about environmental regulations. EPA plans to host as many as 24 sessions to solicit ideas about reforms of current federal environmental policies such as the Endangered Species Act and the EPA's storm water program. Last week, the White House's Council on Environmental Quality, along with four Federal Agencies (the Departments of Agriculture, Interior, Commerce, and the EPA), announced the first of these listening sessions, a series called "Cooperative Conservation" based on an executive order signed by President Bush last year.

These sessions present an important opportunity for NAHB to express its priorities for reform of important environmental policies that affect the home building industry. They will be hosted by the agencies' senior staff, including Secretary of the Interior Dirk Kempthorne in Spokane, Wash., and Redmond, Ore., and EPA Administrator Stephen Johnson.
 
Below is a schedule for the first eight public listening sessions:
 
    Spokane, Wash., Aug. 9, 9:00 a.m. 
    Helena, Mont., Aug. 14, 1:00 p.m.
    Roanoke, Va., Aug. 14, 9:00 a.m.
    Columbus, Ohio, Aug. 21, 4:00 p.m.
    Redmond, Ore., Aug. 22, 9:00 a.m.
    Jefferson City, Mo., Aug. 29, 9:00 a.m.
    Enid, Okla., Aug. 30, 1:00 p.m.
    Redding, Calif., Sept. 13, 9:00 a.m.

NAHB is urging builders to attend and participate at these hearings and to encourage their fellow builders and EOs, as well as other allies, to get involved as well. This is a unique opportunity, and it is imperative that home builders make their presence felt and get their ideas on the record during these hearings. NAHB staff is developing talking points and background materials for participants, if needed, and has already contacted state and local EOs, NVPs, and State Reps for the first 8 sessions. An additional 16 hearings are expected to be scheduled shortly. For more information, e-mail Susan Asmus at NAHB.

Legislative: Estate Tax; Tax Reform Hearings, and Tax Break for Non-Itemizers
 

• Estate Tax Bill Blocked in Senate

By a 56-42 vote, the Senate last week defeated a motion to proceed to vote on H.R. 5970, the Estate Tax and Extension of Tax Relief Act of 2006. Senate Democrats led the way in blocking consideration of the measure, which needed 60 votes to move forward. The legislation would have provided permanent estate tax relief, increased the minimum wage and extended numerous expiring business tax breaks.

Although the bill was approved by the House on July 28, Senate Democrats objected to linking a vote on boosting the minimum wage with estate tax relief. Senators from both parties expressed an interest in moving a set of tax break extensions separately after returning from their August recess, but the fate of a tax cut package remains unclear.

In a procedural move, Senate Majority Leader Frist changed his vote to “no” so that he would retain his right under the rules of the Senate to bring the bill up again in the future, perhaps in the fall. To view the legislation, go to the Library of Congress's Thomas web site and enter the bill number in the center screen box. For more information, e-mail Greg Brown or call him at 800-368-5242, x8421.

• Tax Reform: It’s Back (Sort of)

The Senate Finance Committee last week held the first in a new series of hearings on tax reform. The series, called “Kick-Off for Tax Reform: Tackling the Tax Code,” included witnesses such as Senators Connie Mack and John Breaux, co-chairs of the President’s Advisory Panel on Federal Tax Reform.

In a related development, Senators Max Baucus (D-MT) and  Bob Menendez (D-NJ) introduced legislation allowing home owners who currently do not itemize on their federal tax returns to take an additional standard deduction for the state and local property taxes that they pay to support public education. Only two-thirds of property taxes paid by individuals currently are deducted on federal returns.

Entitled the Nonitemizer Real Property Tax Deduction Act of 2006, H.R. 3738 would create an additional standard deduction of $500 for single filers and $1,000 on a jointly filed return, for state and local real property taxes paid or accrued. Non-itemizers would be able to claim the deduction on top of the standard deduction. The legislation was referred to the Senate Finance Committee and NAHB staff is monitoring its progress. To view the legislation, go to the Library of Congress's Thomas web site and type the bill number in the center screen box. For more information, e-mail Greg Brown or call him at 800-368-5242, x8421.

Taxes/Finance: IRS Issues Guidance on Depreciation for Areas Hit by 2005 Hurricanes
As we near the anniversary of Hurricane Katrina, we are reminded that there is much that still needs to be remedied and clarified, both on the ground and on paper. The IRS has just issued guidance to taxpayers who plan to take an additional 50% first-year depreciation deduction (so-called “bonus depreciation”) with respect to property and buildings located in the Gulf Opportunity Zone. (See Notice 2006-67). The GO Zone was established in 2005 for counties in Florida, Alabama, Louisiana and Texas to provide a set of tax benefits for those areas suffering economic damage as a result of Hurricanes Katrina, Rita and Wilma. These tax benefits, such as the bonus depreciation provision, are intended to encourage investment and recovery in the hardest-hit areas.

The Notice stipulates that taxpayers can claim bonus depreciation if the qualified property is purchased on or after August 28, 2005. In general, the property must be placed into service before December 31, 2007. However, for certain property, including residential rental property, the placed-in-service deadline is December 31, 2008. 

Qualified property is not eligible for the depreciation benefit if it is financed with the proceeds of tax-exempt debt, or if the property is in a class for which no depreciation may be claimed. Additionally, the benefit will not apply if the property is placed in service and sold in the same taxable year, is converted for personal use in the same taxable year, or is a building for which the Code Section 1400I (Commercial Revitalization deduction) election has been made. Property will qualify only if 80% or more of its use is in the GO Zone.

Notice 2006-67 is scheduled to appear in Internal Revenue Bulletin 2006-33, dated Aug. 14, 2006. For more information on this and other tax issues, please contact NAHB’s Tax Issues Director, Robert Dietz, at  800-368-5242 x8285 or NAHB’s tax lobbyist Greg Brown x8421.  [return to top]

Association News: Is Your Company's Safety Program Award-Worthy?
Applications are now being accepted for a new awards program – Safety Award For Excellence (SAFE) – that recognizes residential builders who develop outstanding worksite safety programs. Fannie Mae is sponsoring the award in support of NAHB's efforts to promote the use of best practices in the housing industry.

The SAFE program is open to all NAHB member companies in good standing that build residences, including multifamily homes, that are built using light construction methods. Specialty Trade Contractors, Remodelors, Light Commercial and Multifamily Builders, as well as NAHB-affiliated associations and federal or state plan Occupational Safety and Health Administration (OSHA) officials who have been nominated by an NAHB member or association are all welcome to apply. Awards will be given in a variety of categories. To view a detailed listing of our award categories, please visit the SAFE Award website.

Award winners will be recognized during the 2007 International Builders’ Show in Orlando, Florida. Winners will receive an engraved award, as well as coverage in NAHB’s Nation’s Building News Online. [return to top]

Calendar: Pillars Awards; Affordable/Tax Credit Housing Events; Trade Mission
 

• Pillars Awards Online Entry System Goes Live the week of Aug. 16

Now you can apply for a Pillars of the Industry Award from your comfy desk chair! We'll be sending out directions and a web address in the days ahead, so keep a close watch on your e-mail for all the details.

• Surviving the High Cost Squeeze: Strategies for Tax Credit Developers – Sept. 13

NAHB’s Housing Credit Group – members involved with low-income housing tax credit development – will present a one-day Issues Forum in Salt Lake City, in conjunction with the Fall Board of Directors Meeting. View the details and register online at this link to the NAHB Web site.

• NAHB Fall Board of Directors Meeting – Sept. 13-17

View this page for online registration and the schedule of committee meetings and events, including the Multifamily Board of Directors meeting and the Whirlpool reception.

• Housing, Communication and Crisis: Framing
      Messages to Build Public Support – Sept. 27-28

This conference, offered by the Campaign for Affordable Housing, will take place in Houston and will focus on focus on framing messages that capture media attention and build public support for affordable housing issues, as well as applying the housing lessons learned in the wake of last year's gulf coast hurricanes to other "crisis" situations. For more information, visit the Campaign’s Web site.

• Rescheduled NAHB Trade Mission to Mexico – Nov. 12-14

Join NAHB’s Trade Mission and explore the exciting business opportunities in México’s Vallarta/Nayarit high-end residential, resort, and retirement market! Private briefings will be conducted by government and industry experts from FONATUR (México’s Trust for Tourism Development), FIBBA, (Fideicomiso Bahia de Banderas), the Export-Import Bank of the U.S., the Overseas Private Investment Corporation, and Stewart Title Guaranty de México. Participants will have one-on-one meetings with builder/developer members of México’s Construction Industry Chamber (CMIC) and visit a variety of projects including residential developments, resorts, a future retirement community, and land available for purchase and development.  Please click here to reference the draft agenda for more details. To register, complete the registration form and e-mail it to mboyce@nahb.com or fax it to the attention of Michael Boyce at 202-266-8120. Please note:The participant fee does not include travel and hotel expenses.

  [return to top]

Resource: Newest Edition of the Ultimate Land Development Reference Book
The just-released 10th edition of this comprehensive resource to the residential building industry is available through BuilderBooks, and contains:

• The latest details concerning major environmental regulations that affect land development
• Emerging demographics for targeted marketing 
• New innovations in housing types

Clearly written by Daisy Linda Kone, logically organized, and full of illustrations, this new edition is an indispensable resource for understanding the essentials of residential land development. It’s already receiving rave reviews:

“I recently read Land Development.  It was exactly what I was looking for—a readable, comprehensive introduction to the development process,” said Greg Sundt, Manager,
Installed Services, Guardian Building Products, Greer, South Carolina.

You can order your copy online today! [return to top]