House to Vote on Stringent Immigration Bill
The House this week is expected to consider H.R. 4437, the Border and Immigration Enforcement Act of 2005, legislation that would mandate that employers verify the legal status of new and previously-hired workers. Introduced by Rep. James Sensenbrenner (R-WI), the measure was brought to the House floor after passing the House Judiciary Committee on Dec. 8 by a party-line vote of 23-15. Before the vote, NAHB sent a letter to all committee members outlining several concerns with the bill and specifically calling for a legal guest worker program that would enable employers to legally hire immigrants when there is a shortage of domestic workers.

Noting that current law already penalizes employers who knowingly hire illegal aliens and also imposes stringent paperwork requirements, NAHB said it was unfair that the “primary burden of enforcing our immigration laws should fall on employers.” NAHB said it opposed the bill’s increased paperwork requirements and stiffer penalties that would be particularly burdensome for many small or medium-sized builders. Further, NAHB called on its grassroots members to contact their lawmakers and voice their concerns over the legislation.

Amendments to address these concerns offered by Reps. Chris Cannon (R-UT) and Howard Berman (D-CA) failed in committee, despite the lobbying efforts of NAHB and other prominent business groups who are members of the Essential Worker Immigration Coalition. NAHB will continue to work with members in the House and Senate to urge them to oppose mandatory employer verification requirements and to support creating a legal guest worker program. To read the legislation, click here and enter H.R. 4437 in the box at the center. For more information, contact Tammy Eddy at 1-800-368-5242, x8470.

Halfway to a Square Deal on Lumber
The U.S. Department of Commerce last week announced that it will cut duties on Canadian lumber imports by nearly half, from 20.2% to 10.8%, despite the fact that NAFTA binational appeals panels have called for complete elimination of these hidden fees that inflate housing costs and harm consumers. While this is a positive development, NAHB issued a press release calling the Commerce action a “halfway measure” and urging the Administration to follow its legal obligation to completely eliminate the tariffs. The newly reduced fees, which are expected to take effect in about one week, include a countervailing duty of 8.7%, down from 16.2%, and an anti-dumping tariff of 2.1%, down from 4%. NAHB continues to call for the elimination of all border taxes on lumber and the refund to Canada of more than $4 billion in duties that have been collected. For more information, contact Jason Lynn at x8470. [return to top]

House Approves Terrorism Insurance
By a vote of 371-49, the House last week overwhelmingly approved legislation (H.R. 4314) that would provide a two-year extension of federal terrorism insurance that is due to expire at the end of this year. Last month, the Senate passed a similar measure and the two versions must now be reconciled before Congress adjourns for the year. Enacted in 2002 in the wake of the Sept. 11 terrorist attacks, the Terrorism Risk Insurance Act (TRIA) is intended to provide a backstop for insurance companies in the event of another attack on American soil. The Senate and House bills would both raise the amount of damage sustained in an attack needed to trigger federal aid from the current $5 million to $50 million in 2006 and $100 million in 2007. Unlike the Senate bill, the House  version would make group life insurance eligible for the program and would also cover acts of domestic terrorism while the Senate legislation does not. To read the legislation, click here and enter the bill number in the box at the center. For more information, contact Greg Brown at x8470. [return to top]

House Approves Katrina Housing Relief/Recovery Bill
The House of Representatives last week passed a tax bill specifically focused on assisting in the recovery and rebuilding of areas impacted by Hurricane Katrina.  The "Gulf Opportunity Zone Act," H.R. 4440, provides authority for tax-exempt bonds to rebuild infrastructure, authorizes additional Low Income Housing Tax Credit (LIHTC) authority, creates new deductions and credits for cleanup of the region and authorizes federal guarantees of up to $3 billion in bonds to assist local governments in their recovery efforts.  Several of these provisions were suggested by NAHB when the association testified before the House Financial Services Committee in September on how to respond to the hurricane disaster.

The House bill also specifically bars the use of any tax benefit for casinos, liquor stores, country clubs and hot tub facilities, among others.  There appears to be little or no support for this provision in the Senate and it is questionable as to whether it will survive a House/Senate conference committee.  Senate action on this bill is likely to be an amendment to include the Katrina tax incentives already passed by the Senate before the Thanksgiving recess as part of the budget reconciliation bill.  A quick compromise in conference seems highly probable and both chambers are expected to act on the bill before they depart for the holiday recess. To view the legislation, click here and type the bill number in the box in the center page. For more information, contact Jim Tobin at x8470. [return to top]