NKBA is proud to launch its monthly legislative newsletter to help keep its members up-to-date on relevant legislative and government-related actions. Included as an additional membership benefit, these newsletters will provide high-level overviews and resources on government actions that NKBA tracks throughout all 50 states and on the federal level. NKBA looks forward to serving as an information resource on legislative matters to our members.
FEDERAL LEGISLATIVE ACTIVITY
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
On March 27, President Trump signed a third COVID-19 relief package into law: the CARES Act. Included in this $2.2 trillion relief package, the largest in U.S. history, was $350 billion in loans for businesses via the Small Business Administration (SBA). SBA has an active guidance center that lays out the details what the Administration is offering businesses during this difficult economic time. Additionally, the SBA has established a resource page that outlines the Paycheck Protection Program (PPP), which is funded by the CARES Act. The PPP has been an in-demand program, with some applicants experiencing delays due to high volume. To ensure a smoother application, make sure you have all of the required items when applying, including the NAICS code for your business that some banks are asking for on the application. All businesses are required to include their NAICS codes on federal income tax returns, but if you do not know yours, you may find it here.
Additional Small Business Relief in the Works in Congress
While Congress has already passed three relief packages to deal with the economic impact of COVID-19, a fourth relief package is potentially in development to further assist small businesses. Treasury Secretary Steven Mnuchin has spoken with Congressional leaders to secure an additional $250 billion for the PPP. This is in addition to the $350 billion already approved by Congress and signed into law by President Trump. NKBA will continue to monitor the situation.
U.S. Department of Commerce and U.S. International Trade Commission Conclude Investigation on Wooden Vanities and Cabinets from China
A federal investigation launched in summer 2018 to investigate whether wooden cabinets, vanities and material components made in China has concluded with an affirmative determination. This unanimous decision paves the way for trade officials to impose stiff antidumping and countervailing duty orders on imports of these items. The duty orders went into effect on April 1 and will remain for a minimum of five years. Learn more about the ruling here.
Freedom To Invest In Tomorrow’s Workforce Act (H.R. 5339)
Introduced in Congress last December, H.R. 5339, also known as the Freedom to Invest in Tomorrow’s Workforce Act, is continually being tracked by NKBA. This bill gives individuals greater flexibility in pursuing educational and career opportunities and will help more people enter and thrive in the workforce. It would amend the tax code to permit beneficiaries to use funds in 529 savings plans for expenses associated with obtaining or maintaining postsecondary credentials including professional certificates or certifications. In particular, individuals would be able to use their 529 funds to pay for costs related to certification exams and certification maintenance, such as practice exams, test-prep materials, exam fees, continuing education fees and renewal dues.
STATE LEGISLATIVE ACTIVITY
COVID-19 State Updates and Available Resources: LexisNexis Interactive Map and Marathon Strategies Center
For information on what individual states are doing to combat COVID-19, this interactive map and online platform may be of interest. Click on any state to see up-to-date information or subscribe for complimentary daily email reports.
Maryland Tax on Services Bills Amended to Remove Interior Design Service Tax
Maryland House Bill 1354 was introduced this year with the aim of increasing state revenue by adding a sales tax on interior design and decorating services, along with services from other industries. It was estimated that this new tax on design services would raise $8.9 million in additional state revenue. If implemented, the tax would cost clients additional dollars to use interior design services and dissuade some people from using a kitchen or bath designer as part of their renovation projects, resulting in a loss of business to NKBA members. After outreach from NKBA to its Maryland design members to contact their legislators, we are pleased to report that the bill was amended to remove interior design and decorating services from the list of newly taxed services. After being amended, the bill eventually failed. Thank you to all members who answered the call to contact their legislators.
Florida Legislature Sends Deregulation Bill to Governor’s Desk
Florida House Bill 1193 was passed by the state legislature in March and sent to the Governor for action. Gov. Ron DeSantis has until April 18 to sign this bill into law. This legislation replaces the current licensing scheme for interior designers with a registration for certain local permitting activities. NKBA members and related industry professions that may be impacted if the Governor signs this bill into law are interior designers, architects, construction and electrical contractors, engineers, home inspectors and building-code professionals. An analysis of the bill can be found here. If Florida members would like a one-page summary of this bill, please reach out to the NKBA legislative contact information below.
Several States Announce Residential Construction as “Non-Essential” During the COVID-19 Outbreak
New Jersey has become the most recent state, alongside Washington, Michigan, New York, Pennsylvania and Vermont, to announce that all non-essential construction must cease indefinitely. New York has clarified its stance on “emergency” and “essential” construction. Please check with your state for the most up-to-date information.
CONTACT INFORMATION
Federal and State Legislative Contacts
Don’t forget to contact your Federal and State Legislators for government information and resources. Legislative staffs are available to answer any questions on legislation, or walk you through governmental processes.
NKBA Legislative Contact
NKBA will monitor relevant legislative developments at the state and federal levels, and, where appropriate, provide information to members concerning material issues and developments — including laws and regulations that might impact the kitchen and bath industry. If you have any questions or comments on legislation, please reach out directly to Steven Campeau, NKBA’s Government Relations Specialist, at scampeau@nkba.org.
NOTE: NKBA is providing this material for general information only. This information does not constitute the provision of legal advice, tax/investment advice, accounting services, or professional consulting of any kind, nor should it be construed as such. NKBA is not a lobbying organization and does not have a Political Action Committee (PAC). Resources such as this newsletter are meant solely for informational purposes.
