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 June 12th edition below and sign up to receive your copy.
Budget Reconciliation and Taxes: The Senate Finance Committee is expected to release text of its portion of the comprehensive budget reconciliation bill on Friday. It is anticipated that the bill will revive and make permanent a pair of key business tax benefits: 100 percent bonus depreciation and the research and development tax credit. The bill is also expected to make permanent the 20 percent deduction for S-Corporations and other pass-through structures. The House-passed bill bumps the deduction up to 23 percent, so we anticipate that the Senate Finance Committee’s product will mirror House action on this front. Maintaining the delicate balance of support will be the primary issue confronting Senate leadership. A number of Senate Republicans do not support the state and local tax (SALT) deduction compromise in the House bill but modifying that provision threatens to upend support from House Republicans in high SALT states. Likewise, there is appetite among several Senate Republicans to extend the phase out dates for many of the Inflation Reduction Act renewable energy tax credits, but the House Freedom Caucus members have insisted that doing so would kill their support for the bill.
Trade Progress: President Trump announced on Wednesday that his negotiating team had reached a tentative deal with China on trade between the two countries. According to the administration, tariffs on imports from China would be locked in at up to 55 percent on some products or most likely 30 percent for most products, while China would impose a 10 percent tariff on U.S. goods entering the Chinese marketplace. The agreement is not quite yet finalized and the situation is fluid.
The administration continues to work on multiple deals and is engaged in ongoing negotiations. We will continue to provide updates as they are available.
Transportation Bill Rolls Forward: Support for the Freight Restriction Elimination for Safer Hauling (FRESH) Act is picking up support in the House. The bill would allow trucks carrying perishable commodities that are traveling at the maximum gross vehicle weight on state roads to access the federal interstate highway system at these higher weights. The legislation defines “perishable commodity” to include biomass, chips, logs, and pulpwood. The bill is a truck weight efficiency measure that is a close cousin to the Safe Routes Act. The Hardwood Federation is advocating in support of both these measures in hopes that their provisions will be included in the upcoming highway bill that will be written late this year and into 2026.
Source: Hardwood Federation