[ADVOCACY CONNECTION ] By Matthew Delaney
Dealer Advocacy: From Engagement to Impact Since 1917, the National Lumber and Building Material Dealers Association (NLBMDA) has maintained a sustained presence in Washington. Spanning 55 congressional sessions and 20 presidential administrations, this enduring mission reflects more than a century of advocacy dedicated to advancing the priorities of LBM dealers and strengthening the industry’s voice at the federal level. It is the role of associations like NLBMDA to maintain a sustained presence in Washington, advancing common-sense policies while ensuring real-world industry perspectives are reflected in federal decision-making. While our annual Spring Meeting & Legislative Conference brings dealers to Capitol Hill, our advocacy extends year-round to ensure the LBM industry remains represented as lawmakers and regulators consider policies that impact how you do business. By building consensus and delivering clear, practical insight into how proposals affect dealers on the ground, we help move policy discussions forward and break through the legislative gridlock that too often stalls even the most straightforward solutions. The 119th Congress, which convened in January 2025 alongside the beginning of President Trump’s second administration, has presented a meaningful window for NLBMDA to advance long-standing policy priorities. Among the most consequential opportunities was Congress’s consideration and passage of a comprehensive tax and spending package, where NLBMDA engaged extensively to ensure the interests of LBM dealers were reflected. Absent congressional action, dealers
faced the prospect of higher tax liabilities starting this year and the loss of key provisions that support reinvestment in their companies. The work on Capitol Hill started in 2018, shortly after the previous tax bill was signed into law, with the understanding that several pro-growth provisions would eventually phase down or expire. From that point forward, NLBMDA prioritized sustained engagement with lawmakers and their legislative staff to underscore the importance of preserving these tax tools for LBM dealers. Among the most significant outcomes of last year’s bill was the preservation and restoration of full expensing through 100 percent bonus depreciation, which allows businesses to immediately deduct the cost of equipment and certain investments rather than spreading those costs over several years. For example, if a dealer invests $125,000 in equipment or another qualifying asset, they can deduct the full amount in the purchase year, reducing taxable business income by $125,000 and generating roughly $35,000 to $40,000 in tax savings, depending on the tax rate. Originally enacted under the 2017 Tax Cuts and Jobs Act, this provision began phasing down after 2022 and was scheduled to expire entirely without congressional action. While there was an expectation that this tool could be extended in some form, a central uncertainty remained whether any renewal would again include phase-outs that undermine long-term planning. NLBMDA, in partnership with coalition partners and industry stakeholders, engaged early and consistently to advocate for permanence and predictability, ultimately helping
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secure a structure with no phase-downs that provides dealers with the long-term certainty needed to confidently plan and invest in their businesses. Last year’s tax bill negotiations also provided an opportunity for NLBMDA to advance several housing-related provisions. As suppliers to America’s homebuilders, NLBMDA has consistently advocated for federal policies that promote attainable homeownership and expand housing production, a result that ultimately strengthens demand for LBM dealers. Included in the final bill was a significant boost to the Low-Income Housing Tax Credit, a tool that plays a critical role in financing the construction and rehabilitation of affordable housing. By expanding the credit, the legislation is expected to unlock additional housing development, helping to address underproduction while supporting more stable, long-term demand across the building materials supply chain.
Shaping Workable Regulatory Outcomes Complementing our legislative advocacy, NLBMDA maintains a consistent and vigilant presence in the regulatory arena, recognizing that agency rulemakings from the Occupational Safety and Health Administration (OSHA), Department of Labor (DOL) and Department of Transportation (DOT), among others, have direct day-to-day impacts on how dealers operate. NLBMDA regularly monitors federal regulatory activity and submits substantive comments on proposed rules that could affect lumber and building material dealers, particularly in areas such as labor, workplace safety and employment policy.