(Nov. 6)

The Washington, D.C.-based National Lumber and Building Material Dealers Association (NLBMDA) applauded the passage of legislation Wednesday by the U.S. Congress that will expand and extend the home buyer tax credit and expand net operating loss (NOL) carryback tax relief to more businesses. President Obama signed the legislation on Friday.

Specifically, the legislation will:
• Extend the current $8,000 first-time home buyer tax credit to purchases of primary residences under contract by April 30, 2010, and closed by June 30;
• Create a $6,500 home buyer tax credit for those who have owned their primary home for five years;
• Raise qualifying income limits to $125,000 (single) and $225,000 (couple); and
• Expand NOL relief to all businesses so that they can offset current losses against taxable profits earned in the previous five years. 

Extension of the home buyer tax credit and expanded NOL relief have been top legislative priorities for the NLBMDA in 2009. Both have been deemed critical to reviving the housing market during the prolonged recession.

"The enhanced and extended home buyer tax credit will go a long way toward assisting the economic recovery of our industry by speeding up the disposition of foreclosures, stabilizing home prices and helping to bring equilibrium to housing inventories in many parts of the country," said NLBMDA chairman Dan Fesler, CEO of Lamperts in St. Paul, Minn. "Further, the expansion of the net operating loss carryback provision will free up capital and save jobs at a time we need it the most."