The Hardwood Federation produces a “D.C. Cheat Sheet” newsletter to keep the industry up-to-date on the latest news from Washington D.C. Check out the November 17th edition below and sign up to receive your copy.
Final Election Outcomes Inch Closer to the Finish Line
As we all know, election night didn’t deliver results to show which party would control each chamber of Congress. But as outstanding results trickled out over the days immediately following the election, it became clear that Democrats would retain control of the Senate by reaching the magic number of 50. Across the Hill, the House GOP didn’t gain its razor thin majority of 218 seats until several days after election day. Despite the closely divided legislature, long-time allies of the hardwood industry from both parties will help shape the agenda next year, as well as the lame-duck session that will close the 117th Congress. The Hardwood Federation is also looking forward to meeting with new members of Congress that will join key committees including the Senate Agriculture and Energy and Natural Resources and House Agriculture, Natural Resources, and Ways and Means.
Lame Duck Agenda Takes Shape
Although final election outcomes will cast more light on legislative dynamics in the lame duck session that kicked off Monday, many issues are emerging on top of the list in Congress:
- Federal Spending – Funding for the federal government runs out on December 16. To prevent a partial government shutdown, lawmakers must kick the can for an additional amount of time or agree on a final budget for Fiscal Year (FY) 2023.
- Energy Permitting – Senate Democratic Leadership have struck a bargain with Sen. Manchin to address energy permit streamlines impacting projects in West Virginia.
- Tax Package – Every year several tax credits reach their “sunset dates” and have to be dropped or renewed. This year there’s a push for renewal of 100 percent depreciation of industrial equipment, which the industry supports.
Industry Urges Congress to Extend Tax Break for Heavy-Duty Equipment
On November 14, the Hardwood Federation sent a letter to the Hill’s key tax writers urging Congress to extend the tax credit for 100 percent bonus depreciation as they consider an end-of-year tax package. The industry relies on the credit to bolster investments in new dry kilns, boilers, forklifts, trucks, and other equipment essential to producing hardwood products and moving them to end customers. Although Congress generally pulls together a “tax extenders package,” as the legislation is generally known, at the end of each year, the timing and scope of a tax deal in December is not yet known.
Source: Hardwood Federation