Bush Signs $70 Billion Tax Cut Package Into Law
President Bush last week signed into law H.R. 4297, the “Tax Increase Prevention and Reconciliation Act of 2005,” a $70 billion tax cut package that provides temporary extensions of certain expiring or limited tax provisions. The law contains several NAHB tax policy objectives. It reduces the rate of taxation on investment, limits the reach of the Alternative Minimum Tax (AMT) and encourages business investment by increasing the ability of small businesses to expense certain capital assets. The bill also makes favorable changes to the Veterans' Mortgage Revenue Bond program, modifying it from a Vietnam-era program to a general purpose housing preference for all veterans.

The House and Senate are negotiating a second tax reconciliation bill to include additional tax-credit extenders for the research and development tax credit and the deductions for state and local taxes and college tuition, among other items.  There are other pieces of the bill still to be negotiated, including one of particular interest to home builders – a one-year deduction for private mortgage insurance (PMI) for home buyers in the Katrina-affected areas.  The biggest outstanding items in the trailer bill to be negotiated are a series of charitable organization reforms and revenue raisers championed by Senate Finance Committee Chairman Chuck Grassley (R-IA).  House Ways and Means Committee Chairman Bill Thomas (R-CA) contends more study is needed before passing these reforms and there is some opposition to them among conservative House and Senate members.

NAHB continues to work with the tax-writing staff in both chambers to incorporate our legislative priorities into the second tax bill. View the NBN story on H.R. 4297, or read the entire bill by clicking here and typing the bill number in the box in the center screen. For additional information, contact Greg Brown or call him at 800-368-5242, x8421.

Senate Vote on Immigration Could Come This Week
The Senate last week began consideration of S.2611, the "Comprehensive Immigration Reform Act of 2006."  The bill, which largely mirrors legislation that the Senate attempted to consider in April, would create a new temporary guest worker program, establish a visa program to address illegal immigrants currently in the United States and enhance border security and interior enforcement measures. Additionally, the legislation contains a significant employer enforcement section that would increase penalties and fines for those employers who continue to hire illegal immigrants after the enactment of the new visa system.  NAHB is working closely with the Senate to monitor the bill for any damaging amendments. 

Additionally, NAHB issued an Action Alert to all NAHB members on May 18, encouraging members to contact their senators in support of passage of S.2611.  The Senate is expected to pass S.2611 before the end of next week, and the vote on passage will be considered an NAHB Key Vote.  It will then go to conference with the House immigration reform bill, H.R. 4437, which did not contain any guest worker or illegal immigrant visa programs.  A conference committee between the two chambers is expected to be extremely contentious, and the completion of a final bill remains in question. For more information, see the latest issue of NBN Online or contact Jenna Morgan Hamilton at x8407. To view the bills, click here and type each bill number in the box in the center screen. [return to top]

House Approves Tongass Forest Roadless Provision
The House of Representatives last week passed an amendment by a vote of 237-181 to the Interior Appropriations bill (H.R. 5368) that would prohibit the use of funds in the legislation for timber road building in the Tongass National Forest in Alaska.  NAHB opposed the amendment because it mandates inflexible federal restrictions on forestland without the input and assistance of local interests most affected. NAHB sent a letter to the full House outlining our opposition. As the Interior Appropriations bill moves to the Senate, NAHB will be contacting the offices of Senators Ted Stevens (R-AK) and Lisa Murkowski (R-AK) to voice our opposition to the Tongass amendment, and to urge that it be struck from the Senate bill. For more information, contact Jenna Morgan Hamilton at x8407. [return to top]

House Passes EPA Wetlands Guidance Provision
The House of Representatives last week passed by a vote of 222-198 an amendment to the Interior Appropriations bill (H.R. 5368) sponsored by Reps. Jim Oberstar (D-MN), Jim Leach (R-IA) and John Dingell (D-MI ) that would prohibit the Environmental Protection Agency (EPA) from using funds in the bill to implement the Administration’s 2003 guidelines pertaining to Clean Water Act protections to wetlands. NAHB opposed the amendment, sent a letter to the full House outlining our opposition and activated Key Contacts for several targeted members of Congress.

The wetlands guidelines were enacted in response to the 2001 Supreme Court decision in Solid Waste Agency of Northern Cook County v. U.S. Army Corps of Engineers ("SWANCC").  While the meaning of SWANCC and the extent of "navigable waters" has generated extensive debate in the courts, on Capitol Hill, and within the agencies, it is the only guidance that provides any measure of clarity in this area of the law.  The Oberstar-Leach-Dingell amendment removes this predictability, bolsters the agencies' assertion of Clean Water Act jurisdiction based on the very factors that have been deemed unconstitutional by the Supreme Court, and removes an important oversight role that guards against agency overreach. NAHB will now shift its focus to preventing a similar amendment from being offered when the Senate considers its version of the Interior Appropriations bill.  We also will work to strip this proposal when the appropriations bill in considered in conference later this year.  For more information, contact Jason Lynn at x8307. [return to top]