July 14, 2008

NECA Legislative Update -- Testifying at HSBC,

Rema Testifies Before House Committee

On Thursday, July 12, Oregon NECA member Randy Rema testified before the House Committee on Small Business and reported on NECA’s efforts and his company’s interest in green buildings.

Rema reported on the green jobs created through growing consumer interest in solar and other renewable technology, and he asked the committee to vote to on legislation that would extended tax credits for alternative energy investments. Rema’s remarks included reference to NECA’s investment in green training through NJATC. 

Copper Coalition Obtains Commitment for Bill Introduction

Rep. Bart Stupak (D-MI) has committed to introduce legislation that will attempt to curb copper theft. While the details of the legislation are still being worked out, it is likely that scrap metal dealers will be required to document certain transactions involving copper with penalties associated for non-compliance. 

Along with many industries impacted by copper theft, NECA participates in a coalition that is attempting to prevent this practice.  NECA signed on to a letter to House Judiciary Chairman John Conyers (D-MI) calling for documentation of transactions between the sellers of copper and secondary metal recyclers, which will serve as the basis for the soon to be introduced legislation described above.

Increased Reporting May Require Additional Credit Card Disclosures to the IRS

Included in legislation that would “patch” the Alternative Minimum Tax (AMT), as well as the Housing Stimulus legislation being considered by the Senate, is a provision that would require annual sales figures to be reported to the IRS.

Tax authorities believe that such a disclosure would help reduce the tax gap and would pick up as a result an additional $9.8 billion in unreported income. Banks and credit card companies are likely to increase fees in response to the measure, which will definitely impact small businesses.

Banks and card companies that are unable to obtain a taxpayer’s identification number with each transaction will be required to withhold 28 percent of the total credit card cash flow. And yes, the same legislators who proposed the three percent withholding tax are the same ones proposing a 28 percent withholding premium. NECA is working to prevent imposition of this new withholding premium.

Recycling fluorescent lamps now law in Massachusetts

As of May 1, residents of Massachusetts can no longer dispose of mercury-containing lamps (like compact and regular fluorescent bulbs) in regular trash. Rather, they must be treated as hazardous material and taken to special disposal facilities.

Lamp manufacturers are responsible for implementing lamp recycling education programs in Massachusetts. However, if such education does not produce annual target levels by the first quarter of 2009, manufacturers could be fined and subject to stiff penalties from Massachusetts authorities.

While this only impacts residents of Massachusetts, it is likely other states will secure similar legislation. Additional education regarding how lamps should be recycled can be found at http://www.lamprecycle.org/. 

2008 NECA Political Leadership Council Summit, Sept. 10-11 in Washington, D.C.

Mark your calendars now! Invitations and an agenda for this important annual event will be coming soon.