Go big or go home — After spending several trillion dollars since the onset of the pandemic, Congress is looking to pivot spending to a long-talked about area of need: infrastructure! This could be good news for the building and construction industry, as well as the residential remodeling industry, as the sprawling $2 trillion-plus package includes money for energy efficiency grants and home energy efficiency retrofits. However, passage of the proposal may be in for a bumpy ride, as members of Congress have concerns about the size and scope.
-Steven Campeau
NKBA Government Relations Specialist
FEDERAL ACTIVITY
Freedom to Invest in Tomorrow’s Workforce Act Introduced In Congress
Rep. Abigail Spanberger (D-VA), joined by Reps. Fred Upton (R-MI), Dean Phillips (D-MN), and Rob Wittman (R-VA), introduced House Resolution 2171, a new version of the Freedom to Invest in Tomorrow’s Workforce Act that has been discussed in prior newsletters. Sens. Amy Klobuchar (D-MN) and Mike Braun (R-IN) introduced identical companion legislation, Senate Bill 905, on the Senate side. The Act is an important measure to ease the financial burden on individuals seeking to apply for or maintain certification, as well as those who are seeking opportunities for career growth by obtaining a credential allowing them to switch careers. 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.
A multiyear federal infrastructure investment bill could boost construction spending by 2%.” — Moody’s Investors Service
House Energy and Commerce Committee Introduces Leading Infrastructure For Tomorrow’s America Act
The Leading Infrastructure For Tomorrow’s America Act, or LIFT America Act, was introduced by the 32 Democratic members of the House Energy and Commerce Committee to address America’s aging infrastructure. According to the Committee, the Act, with a price tag of more than $2 trillion, will modernize the nation’s infrastructure, rebuild the economy, combat climate change and protect public health and the environment. The legislation invests more than $312 billion in clean energy, energy efficiency, drinking water and other areas.
With Senators including Minority Leader Mitch McConnell (R-KY) and Joe Manchin (D-WV) hesitant to support such a large package, which includes increasing the corporate tax rate to 28%, passage of an infrastructure bill may take time and compromise. Senator Roy Blunt (R-MO) urged for the Act to be reduced to roughly $615 billion and focus on rebuilding physical infrastructure. Earlier this year, Moody’s Investor Services released its latest Building Materials report in which it estimated a multi-year federal infrastructure investment bill would provide a substantial boost to already-strong demand in construction spending. This report did not analyze the current proposal. NKBA will continue to monitor the progress of a potential infrastructure package and inform its members of pertinent updates.
Canadian “Coalition of Hardest Hit Businesses” Seek Continuation of Federal Support Programs
An industry-driven group of more than 100 stakeholders representing a variety of sectors has formed the Coalition of Hardest Hit Businesses to appeal to the Federal Government for extensions of COVID-19 relief programs. These include the Canada Emergency Wage Subsidy (CEWS) as well as the Canada Emergency Rent Subsidy (CERS), which are both set to expire on June 5. According to the Coalition, 60% of Canada’s hardest hit businesses will not survive to the end of the year without extended support of Federal relief programs. For more information on this coalition, please visit their website.
STATE ACTIVITY
Georgia Legislature Seeks to Extend Lien Rights to Registered Interior Designers
Georgia House Bill 480 relates to mechanics and materialmen liens and their expansion to include services provided by registered interior designers in the state. A lien, a legal document that can be filed on the real property of a client, would provide those in the industry with a new tool to protect their services from non-payment. Both chambers of the legislature passed the bill and it is now awaiting action by the Governor. To see more details of the bill and what it encompasses, please review the bill or contact the sponsor, Representative Washburn at dale.washburn@house.ga.gov.
25 states have enacted Paycheck Protection Program tax conformity to ensure small businesses are not burdened by additional tax bills.
Minnesota Senate Aims to Join 25 Other States by Enacting Paycheck Protection Program (PPP) Tax Conformity
The Minnesota Senate passed a PPP tax conformity bill aimed at providing relief to small businesses who received a PPP loan to stay afloat drawing the COVID-19 pandemic. Under the Federal CARES Act that created the PPP, the federal government made it clear that forgiven PPP loans were not considered taxable income at the federal level, but they are at the state level, according to Minnesota law. This bill aims to bring Minnesota into federal tax conformity so that these forgivable loans are not subject to state taxes. The legislation still needs to pass the House and be signed by the Governor to go into effect. To review a full list of states that have enacted some form of PPP tax conformity, please review this helpful article. PPP applications are open until May 31.
COVID-19 State Updates and Available Resources
To keep current on what individual states are doing to combat COVID-19, this interactive map, online platform and resource center might be of interest. The interactive map shows all COVID-19-related legislative activity that each state has enacted, while the online platform and resource center provide important information related to COVID-19. Interested in learning more about COVID-19 vaccinations? Track vaccination doses in your state here and see if you are eligible for the vaccine here.
CONTACT INFORMATION
Federal and State Legislative Contacts
Don’t forget to contact your Federal and State Legislators for government information and resources. Legislative staff 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 are meant solely for informational purposes.
