This message was originally sent to The Adhesive
& Sealant Council’s membership. Special thanks to ASC for permission to
reprint.
To: ASC Member Representatives
From: Mark Collatz, Director of Government Relations
Recently, ASC worked with a coalition of associations to have
favorable tax incentives placed in the federal stimulus package, the American
Recovery and Reinvestment Act of 2009 (ARRA). While the effort eventually
proved unsuccessful, the law firm that handled the negotiations with
Capitol Hill put together a description of various provisions that could prove
helpful to the to the coalition of associations’ member companies. These
provisions will provide massive spending for construction utilizing
building products and home furnishings as well as tax incentives and
benefits for home purchases, school construction bonds, businesses and vehicle
purchases.
To give you some idea of what and where these key
provisions, both for spending provisions and tax provisions, I have identified
the section in the final legislation. To obtain a copy of the complete
final legislation go to
www.house.gov.
In the center of the page you will find a link entitled Find a
Bill, Amendment or Debate – click on Search Thomas by bill text or
number. At the next site click on enrolled bills and submit. The
ARRA will be at the bottom of the page. If you have problems getting to
the electronic copy of the stimulus package, call me at 301/986-9700 ext. 112
Spending Provisions American Recovery and Reinvestment Act of
2009:
- GAP Financial Proposal
The ARRA provides the HOME Investment Partnership Program with
an increase in block grant funding to enable state and local government,
in partnership with community-based organization to acquire, construct, and
rehabilitate affordable housing and provide rental assistance for poor
families. HOME funds will be principally used to jump-start affordable
housing projects in desperate need of gap financing due to the collapse of the
Low Income Housing Tax Credit (LIHTC) market, and to ensure that
vulnerable families obtain and maintain stable housing during the economic
downturn. This provision is expected to result in 50,000 units in 2009.
Title XII TRANSPORTATION SND HOUSING AND
URBAN DEVELOPMENT
Community Development Fund
home investment partnership fund
- Department of Defense Facilities
Billions of dollars are provided for defense facilities
including; $1.3 billion for new construction to provide state-of-the- art
medical care to service members and their families (Medical Facilities); $4.2
billion to invest in energy efficiency projects and to repair and
modernize Department of Defense facilities of which $400 will be used to
improve military medical facilities and $153 million will be used to restore
Army barracks; $890 million to improve base housing for our troops and families
and to provide re-stationing military homeowners; $240 million for new child
development centers: $100 million for new construction to support Guard and
Reserve units across the country with operations and training facilities and
utilities infrastructure: and $150 million Grants for Construction of State
Extended Care Facilities.
Title X MILITARY CONSTRUCTION AND VETERANS
AFFAIRS
- Department of Veterans Affairs
One billion dollars is provided for veterans’ medical
facilities repairs, including energy efficiency projects.
Title X MILITARY CONSTRUCTION AND VETERANS
AFFAIRS
- Federal Buildings
$4.5 billion is provided to the General Services
Administration (GSA) for construction, renovations, and repairs of federal
buildings and courthouses. Projects are to be selected based upon their
ability to be awarded within 120 days so that construction can begin as soon as
possible and emphasis is on energy efficiency.
Title V FINANCIAL SERVICES AND GENERAL
GOVERNMENT
GENERAL SERVICES ADMINISTRATION
- Home Weatherization
$5 billions provided to expand the number of households
eligible for assistance under the Department of Energy’s “Weather Assistance
Program.” The program provides grants to states to assist low income
households with the purchase and installation of materials that improve energy
efficiency.
Title IV ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF ENERGY—ENERGY PROGRAMS
- Health Care Facilities
Several billion dollars are provided for healthcare
infrastructure, including: $500 million, part of which is designated for
building Public Health Center health centers; $1.5 billion for renovation and
repair existing health centers; $1.3 billion in grants and contracts to
renovate or repair existing non-federal, university research centers; and $500
million for National Institute of Health building repairs and improvements.
Title VII INTERIOR, ENVIRONMENT AND RELATED
AGENCIES
DEPARTMENT OF HEALTH AND HUMAN SERVICES
- Education Facilities
$39.5 billion of the “State Fiscal Stabilization Fund” is
designated for distribution by states to local school districts, part of which
may be used for school “modernization” and other purposes. Additionally,
$8.8 billion is designated to states for high priority needs, including
modernization repairs and renovations of public schools and facilities and
institutions of higher learning.
Title
XIV STATE
FISCAL STABILIZATION FUND
DEPARTMENT OF EDUCATION
- Federal Buildings
$5.5 billion is provided to GSA for real property activities
including construction, renovations and repairs of federal buildings and
courthouses and conversion of GAS buildings to High-Performance Green
Buildings. Projects are to be awarded based upon their ability to be
selected in 120 days.
Title V FINANCIAL SERVICES AND GENERAL
GOVERNMNET DEPART OF THE TREASURY
GENERAL SERVICES ADMINISTRATION
Real Property Activities
- Department of the Interior—Bureau of Indian Affairs
$450 million is provided for construction, repairs and
replacement of schools, detention facilities, roads, bridges, employee housing
and maintenance.
Title VII INTERIOR, ENVIRONMENT AND RELATED
AGENCIES
Bureau of Indian Affairs
- Other
The ARRA includes many other spending provisions, such a $30
billion to states for highway, bridges and transit projects, $8 billion for
high speed rail projects, and over $33 billion for various energy efficiency
and renewable energy programs, including research and modern electric grid
development. Some of these spending provisions may benefit ASC members
through calls for additional adhesive and sealants.
Tax Provisions American Recovery and Reinvestment Act of 2009:
- Refundable First-Time Home Buyer Credit
Last year, Congress provided taxpayers with a refundable tax
credit that was equivalent to an interest-free loan (for a term of 15 years)
equal to 10 percent of the purchase of a home (up to $7,5000) by first
time home buyers. The provision would have expired July 1, 2009.
The credit phases out for taxpayers with adjusted gross income in excess
of $75,000 ($150,000) in the case of a joint return). The ARRA eliminates
the repayment of the obligation for taxpayers that purchase a home after
January 1, 2009 and increases the maximum value of the credit to $8,000.
It expires November 30, 2009.
Subtitle A-Tax Relief for Individuals and
Families
PART I GENERAL TAX RELIEF
SECTION 1006
- Five year Carryback of Net Operating Losses
The ARRA includes a provision that allows businesses (with
gross receipts of less that $15 million or less) to “carryback” their operating
losses in 2008 and 2009 for up to five years, rather than the two year
permitted under current law. The provision requires that businesses
choosing the longer period reduce their losses by 10%.
Subtitle C-Tax Incentives for Business
PART II SMALL BUSINESS PROVISON
- Extension of Bonus Depreciation
Last year, Congress temporarily allowed businesses to recover
the costs of capital expenditures made in 2008 faster than ordinary
depreciation schedule. Specifically, Congress enacted a provision that
would allow businesses to immediately write-off fifty percent of the cost of
depreciable property acquired in 2008. ARRA would extend this temporary
benefit for expenditures in 2009.
Subtitle C-Tax Incentives for Business
PART
I TEMPORARY INVESTMENT INCENTIVES
