• NAHB Fights Proposal to Increase Tax Rate on Carried Interest
  
  While legislation approved by the House last week would provide temporary relief from the Alternative Minimum Tax (AMT), NAHB opposes the measure because a plan to tax "carried interest" to pay for the bill would impose a multi-billion dollar tax increase on real estate at a time when the industry is already reeling from a major cyclical downswing.

While NAHB supports the goals embodied by H.R. 6275, the Alternative Minimum Tax Relief Act of 2008, to halt the reach of the AMT for another year, it has been noted that the carried interest proposal to offset the cost of this relief would result in higher prices for multifamily housing, less job creation, and lower community development, especially in underserved areas. NAHB sent this message to lawmakers in a letter delivered before they voted on the bill.

Under present law, capital gain income generated by carried interest in a partnership is subject to a tax rate of 15%. Under the House bill, which passed by a vote of 233 to 189, this carried interest would be characterized as ordinary income subject to tax rates up to 35%.

While the Senate also supports reining in the AMT, the chamber in December rejected a similar House plan to tie AMT relief to increasing the tax on carried interest.

If the Senate considers AMT relief later in the year, NAHB will work aggressively to oppose any efforts to include the carried interest proposal because of its damaging impact on real estate development.

To read the House bill, click here and type H.R. 6275 in the box in the center of the page.For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421

• NAHB Ramps Up Lobbying Effort

NAHB has hired former Republican Rep. Michael Oxley of Ohio and his lobbying firm, Baker and Hostetler, according to recently filed lobbying reports. It also has contracted with two other lobbying firms over the past month.

In signing on with three new firms, the association doubled its roster of outside lobbying representatives to six. The association also has a stable of in-house lobbyists representing its agenda on Capitol Hill.

Oxley, a former chairman of the Financial Services Committee, is the biggest name among the new contracts signed by NAHB. The trade association hopes Oxley can help influence the housing legislation currently under consideration in the Senate.

View Full Article from Congressional Quarterly.