April 14, 2025 • View in browser

Formerly "Dealer Digest," NLBMDA Weekly is the premier source of federal legislative, regulatory, and industry news for NLBMDA members.

White House Announces 90 Day Tariff Reprieve, One Week After “Liberation Day”

President Trump reversed course on sweeping reciprocal tariffs levied against nearly all nations less than a week after first announcing the measure. On April 9th, the White House released a new guidance removing country-specific reciprocal tariffs opting instead for a 10 percent across-the-board tariff for nearly all imports. That same day, the White House announced new tariffs on Chinese imports, raising the tariff on Chinese imports to 125%. This new tariff has been layered on to an existing 20% tariff enacted on March 4th making the combined tariff rate 145%. Good originating from Canada and Mexico that are compliant with USMCA continue to receive duty-free treatment. Steel, aluminum, assembled automobiles, and auto parts continue to receive a 25% elevated tariff rate.

House Republicans Pass Budget Resolution, Unlocking Reconciliation Process

Congressional Republicans have passed a key milestone unlocking their ability to craft an immense legislative package expected to include tax, border, defense, and debt-limit provisions. Last Thursday, the House of Representatives cleared the FY 25 budget resolution in a 216-214 party line vote. House Republicans and Senate Republicans will be operating under different guidelines and will be required to reconcile key differences in order to deliver a legislative victory to the resolute desk.

Republicans will now work towards renewing several tax provisions enacted in the 2017 Tax Cuts and Jobs Act (TCJA) that will expire at the end of this year absent Congressional action. The President has also instructed Capitol Hill tax writers to include new tax provisions, including removing tax on tipped wages and increasing the state and local tax deduction, also know as the SALT tax deduction. Bills drafted through the reconciliation process are given expedited privileges and only require a simple majority in the Senate for passage. Speaker Mike Johnson (R-LA) has indicated his preference to pass a completed tax bill by the end of May. Senate Republicans have pushed back on the aggressive timeline floated by Johnson suggesting that the process likely will not be fully completed until Labor Day. Today, Congress began its two-week April recess in observance of Easter and Passover.

NLBMDA Hosts Successful 2025 Spring Legislative Conference

Earlier this month, the National Lumber and Building Material Dealers Association (NLBMDA), in partnership with the Windows and Doors Manufacturers Association (WDMA), held a successful 2025 Spring Meeting & Legislative Conference in the nation’s capital. Dealers across the nation descended on the Halls of Congress to meet with lawmakers and their staff to advocate for several of the legislative priorities for the LBM industry. NLBMDA members met with over 145 Congressional offices in a jam-packed day filled with advocacy and connection.

“NLBMDA’s legislative conference serves as the preeminent venue for LBM dealers seeking to advocate for the legislative priorities of the industry,” said NLBMDA Government Affairs Coordinator, Matthew Delaney. “As a member-driven organization, NLBMDA members play a critical role through highlighting the impact small to mid-sized LBM dealers have in communities throughout the country.”

Read our conference recap here.

Register for the Pro Dealer Industry Summit Today!

The Pro Dealer Industry Summit is an opportunity to drive your business forward! This premier industry event is an exclusive, live educational forum designed to promote the growth of lumber & building product dealers, distributors, wholesalers, and the manufacturers who supply them. Register now for your chance to:

network with peers and industry leaders
gain insights from LBM experts
exchange ideas and collaborate with like-minded colleagues
expand your professional connections

NLBMDA Meets with Quebec Washington Delegation to Discuss Trade, Softwood Lumber Dispute.

Earlier this month NLBMDA’s President & CEO Jonathan Paine and Government Affairs Coordinator Matthew Delaney met with representatives of the Québec government during a recent visit in Washington. ““NLBMDA thanks Minster Skeete and the entire Québec delegation for the opportunity to discuss the status of softwood lumber negotiations and the tariff dispute between the United States and Canada. NLBMDA reaffirmed its position that a long-term agreement is needed to help stabilize the market and minimize price uncertainty in residential construction, which is contingent on our partnership with Canadian suppliers,” said NLBMDA President & CEO Jonathan Paine. Read our full communication here.

Home Prices Reach Record High in February

The average household now needs to earn 22% more than the average US wage to afford a home according to the property data provider Cotality. In February, U.S. home prices hit a record high, with the national median reaching $385,000, requiring 22% more income than the average wage to afford. The Northeast continues to lead in price growth, but states like West Virginia, Tennessee, and South Carolina are also seeing sharp increases, with median prices now in the low $330,000s. Only Hawaii and Washington, D.C. saw price declines, though their values remain high. Cotality’s Chief Economist Selma Hepp noted the market’s “continued cooling” reflects weak demand amid economic uncertainty and inflation concerns.

Affordable Housing Credit Improvement Act of 2025 Introduced in U.S. House

Last week, Reps. Darin LaHood (R-IL) and Suzan DelBene (D-WA) officially introduced the Affordable Housing Credit Improvement Act of 2025 (AHCIA) (H.R.2725). The bill was introduced with 114 bipartisan cosponsors, nearly a quarter of the entire U.S. House. Earlier this month, NLBMDA members canvased the Halls of Congress to advocate for the landmark bill which if passed would make significant strides towards tackling housing affordability through expanding the Low-Incoming Housing Tax Credit (LIHTC).

“For decades, lumber and building material dealers have partnered with developers to support the construction of affordable housing,” said NLBMDA President & CEO Jonathan Paine. This is the fifth time AHCIA has been reintroduced, each time earning broad bipartisan support. This Congress, as lawmakers work to advance a substantial reconciliation bill, NLBMDA will be strongly advocating for the inclusion of the provisions in AHCIA to be included in the tax package. Read out AHCIA reintroduction communication here.

Neighborhood Homes Investment Act Reintroduced, NLBMDA Supports

Reps. Mike Kelly (R-PA) and John Larson (D-CT) have Reintroduced the Neighborhood Homes Investment Act (NHIA, H.R. 2854), a top priority bill for NLBMDA’s advocacy efforts. The legislation aims to boost the supply of affordable housing through the establishment of a new tax credit. The bill creates a Neighborhood Homes Credit (NHC) to promote new construction and substantial rehabilitation of affordable housing in distressed neighborhoods.

The NHC would be allocated at the state level by state housing finance agencies (HFAs). At the federal level, the program would be overseen by the Treasury Department. The NHC would be structured in a similar fashion to the Low-Income Housing Tax Credit, allowing developers to recover the costs associated with property acquisition and development whilst still allowing the property to be sold below market rates. Senators Todd Young (R-IN) and Mark Warner (D-VA) are expected to introduce a Senate companion bill after Congress’ April recess.

NLBMDA Co-Signs Trades Letter Opposing Proposed Tax Hikes

NLBMDA has sent a letter to Way and Means Chairman Jason Smith and Finance Committee Chairman Mike Crapo expressing opposition to a proposal by a cohort of lawmakers to raise the top individual and pass-through tax rate to 40 percent. The measure if enacted would eliminate half of the benefit of a Section 199A deduction for affected businesses. Following our letter and backlash from other lawmakers, Republican leadership has confirmed that it would not explore the proposal with Speaker Johnson (R-LA) stating, “generally, we’re trying to reduce taxes around here.”

The full letter can be found here. An expert is included below.

“As long-time Main Street champions, we encourage you to stand strong and oppose any effort to increase income tax rates, including recent proposals to raise the top individual rate to 40 percent. This idea is presented as a modest adjustment affecting only the wealthiest Americans, but it would disproportionately harm hundreds of thousands of pass-through businesses organized as S corporations, partnerships, and sole proprietorships.

…. We understand the fiscal pressures involved in crafting a legislative package of reforms and extensions, but increasing the top individual rates would target the very businesses Congress seeks to help. Proposals like this reflect a fundamental misunderstanding of how these companies operate and their central role in the broader economy.”

Treasury Department Announces Elimination of Duplicative Regulations

The U.S. Treasury Department has announced that it will take immediate action to eliminate 15 rules and guidance materials, citing burdens on small businesses. This follows the recission of the beneficial ownership information requirements under the Corporate Transparency Act (CTA). Treasury estimates that American businesses will save more than $10 billion in first-year reporting costs and $9 billion per year each year after. Treasury Secretary Scott Bessent stated, “These actions are part of President Trump’s bold agenda to unleash American prosperity.” Treasury plans further deregulation measures to ease IRS rules and expand capital access. NLBMDA has and will continue to strongly advocate for the elimination of federal regulations which target small businesses and inhibit competition.

NLBMDA Submits Formal Comments In Response to Commerce Dept’s Section 232 Investigation on Lumber and Timber

In March the Department of Commerce the initiation of a Section 232 investigation to, “determine the effects on the national security of imports of wood products: timber, lumber, and their derivative products”. A Section 232 investigation is conducted under the authority of the Trade Expansion Act of 1962 and provides the federal government with the ability to conduct targeted investigations to determine potential national security impacts for certain imports. In noticing the investigation, the Commerce Department provided a three-week window of opportunity for members of the public to submit comments on the investigation. NLBMDA, along with our association partners, submitted a formal request for an extension to provide more time to survey the membership and develop substantive comments. While the request was ultimately denied, NLBMDA nevertheless submitted abbreviated comments which sought to demonstrate the importance of foreign lumber in the U.S. economy and cautioned against new measures that would raise costs for consumers and small to mid-sized LBM dealers. The Commerce Department is required to conclude its investigation by mid-November after which it will make the determination if additional tariffs on foreign lumber are warranted.

Kodiak expands in N.C.

Kodiak Building Partners has acquired New River Building Supply & Lumber Company, which has served North Carolina since 1973. According to Colorado-based Kodiak, the acquisition aims to strengthen the company's presence in the developing Southeast market while preserving New River’s legacy in the region’s High Country, including Boone and Banner Elk.

Behind the scenes at Germantown Hardware

Orgill likes to refer to Germantown Hardware as a "lab." Just about 15 minutes from its Collierville headquarters outside Memphis, it's an ideal place to tinker with new tech and experiment with different retail tactics. The insights and takeaways gathered here in Germantown provide vital proof-of-concept data for Orgill--and for its customers.

ECI Software lands acquisition

ECI Software Solutions, one of the biggest tech players in the building materials industry, has just gotten a bit bigger. The company has acquired Davisware LLC, a provider of all-in-one business management solutions for field service organizations. The acquisition extends ECI’s footprint in the commercial food equipment, commercial HVAC & refrigeration, petroleum equipment and overhead garage door industries throughout North America.

LMC Names TC Feick Regional Manager of the Mid-Atlantic Region

LMC is proud to announce the appointment of TC Feick as the new Mid-Atlantic Regional Manager. With an impressive 40 years of experience in the LBM industry, Feick's expertise is well-established.

Simpson Strong-Tie Donates $20,000 to the American Red Cross for Myanmar Earthquake Relief Efforts

Simpson Strong-Tie has donated $20,000 to the American Red Cross, partner of the Myanmar Red Cross Society (MRCS), in support of efforts following the 7.7-magnitude earthquake in Myanmar on March 28. The earthquake is reported to have killed at least 3,000 people and counting, injured thousands more, and damaged or destroyed innumerable buildings and vital infrastructure.

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