Congress’s Easter Break – An Opportunity to Talk Tariffs

Members of Congress have left town for a two-week Easter break where they will be either on Congressional Delegation (CODEL) trips to sites around the world or back home in their states and districts. If you happen to run into your Representative or Senator in the next ten days or so, please take a moment to emphasize with them how devastating the latest tariff war with China is on our industry. The Hardwood Federation team is making the rounds here in D.C. with key Congressional leaders on trade and with the White House (including Senate Finance Committee staff totay), but our collective voices need to be heard. Feel free to use our talking points about the impacts of tariffs on the industry in 2018 when speaking to your elected officials.  You may also share the Hardwood Federation’s Tariff Relief Proposal as well as the Hardwood Federation Board of Director’s Statement on Global Tariffs.

HF Fly-In Just Three Weeks Away

Over sixty industry leaders have signed on to spread the word about the challenges facing the U.S. hardwood companies in the current economic environment.  Join them NOW!  This is your opportunity to be part of the solution.  Registration is open through May 2, 2020; our special rate at the host hotel ends on April 25^th.  Don’t delay!  Sign up HERE!

Tax and Budget Negotiations Make Slow Progress

Just before leaving town, the House passed a compromise budget resolution which begins the process (budget reconciliation) to restore and extend key business tax incentives critical to the hardwood sector. Budget reconciliation is a parliamentary procedure that allows enactment of legislation with a simple majority vote in the Senate instead of the customary 60 vote threshold. A comprehensive budget reconciliation bill will be the vehicle for the Republican majority to revive and extend key business tax benefits that have been phasing out or have outright expired. These benefits include 100 percent bonus depreciation which allows manufacturers to write off the full costs of investments in machinery and equipment in the same year those costs are incurred. This benefit was reduced by 20 percent in 2023, 2024 and again in 2025. It is slated to fully phase out in 2027 unless extended. Also to be included is the Research and Development tax credit which expired in 2022 and restoring more favorable interest deductibility for companies (EBIT to EBITDA). Finally, the bill will extend the Section 199A tax benefit for S-Corporations and other pass-through structures which is scheduled to expire at the end of this year. The Federation has been meeting with key lawmakers in both the House and Senate for over a year advocating for restoring and extending these critical benefits. When Congress returns the last week of April, forging and moving a comprehensive budget reconciliation package will be the key focus in the four-week run up to Memorial Day.