This morning, the ABMA Committee met to get an update on our priority bills, discuss current issues including the House tax package, and further plan for Advocacy Day 2024.
Earlier this month, the Republicans in the House introduced their highly anticipated tax package. ABMA had been working hard to get our tax priorities included, and we were successful in getting the bonus depreciation (full expensing) extension for property placed in service after December 31, 2022 and before January 1, 2026, included. Currently, this expensing is phasing out to be eliminated by 2027.
The package also included positive changes to writing off R&D costs. As of January, businesses can no longer write off R&D costs in the year they incur them but must instead amortize them over 5 years. The tax package reverses this change.
Unfortunately, an extension of the Sec. 199A deduction for S-Corporations and other pass-through entities was not included. This was included in the Tax Cuts and Jobs Act of 2017 in an attempt to level the playing field between traditional C Corporations and the S-Corporation community. Although it does not expire until 2025, we are continuing our efforts in the House and Senate to ensure this is included in this year’s final tax package.
Some sections of the bill are nonstarters in the Senate – like repeals of some environmental sections of the Inflation Reduction Act – but we are confident the House and Senate can come to an agreement. ABMA will continue to be involved and keep members apprised of how you can help with our grassroots efforts.
The Committee received an update on Advocacy Day planning. We are still trying to secure a hotel that has adequate space for the dates we need. The Committee discussed date alternatives to give us more flexibility in planning. Once we have all the details finalized, we will be announcing the dates and members will be able to book their hotel rooms.
Yard Tours – Be an Industry Ambassador
A Yard Tour is the perfect opportunity to educate legislators about your business and the LBM industry. Different from formal legislative events like Advocacy Day, a Yard tour is less about legislative priorities and more about sharing your story. We already have more than a dozen ABMA members interested in hosting a yard tour. Congress is on recess for the month of August, which makes it an excellent time for a visit, but we can also schedule tours well into the fall months.