In last week's Big Builder Online survey, readers were asked to weigh in on the net operating loss (NOL) tax carryback provision and whether a possible extension would help or hinder builders. This provision has re-emerged as a source of debate in the home building industry following President Obama's proposed budget.
The majority of respondents--65%--said they are in favor of an extended NOL tax carryback for home builders of all sizes. "This will help the large builders who paid too much for land and helps the small builder who could not afford to pay that much. Now with land values lessened, the small builder can buy lots at a reasonable price and sell their homes again," said one respondent.
However, 30% of respondents oppose an extended carryback, and 5% are undecided. One respondent against the carryback said: "The large public builders will sell the land at depressed prices and further extend the downturn."
Responses were mixed when asked if the extended carryback would unfairly benefit the large public builders, with 45% saying yes and 47.5% saying no; 7.5% were unsure.
When asked if the NAHB and its lobbying efforts reflect the interests of all its members, 45% said the trade organization was not working on behalf of its entire membership. However, 12.5% said the NAHB is reflecting the interests of its members and 25% said it is to a degree; 17.5% are undecided.
"There are a lot of home building-related issues, and for the most part I do feel that they reflect the interests of their members. However, in this case I think they completely underestimated the consequences of their actions. I also think that Congress' action to remove this from the stimulus bill was a big mistake," noted one respondent.