The U.S. Senate voted 87-12 today for a House bill to repeal controversial legislation that would have required LBM dealers and other small businesses to increase dramatically the number of IRS 1099 forms that they would have to issue. The passage was hailed as a victory by many associations and businesses within the LBM industry who have worked over the past year to repeal the legislation. It now goes to President Obama for his signature; Obama has said on multiple occasions that he does not support the 1099 legislation and that it should be repealed.
The 1099 legislation refers to the IRS forms small businesses would have had to file, under the Patient Protection and Affordable Care Act, for each vendor from which they purchased more than $600 in goods from during the year. The legislation would have gone into effect in 2012.
"After a hard fought, year long battle on the 1099 legislation, today's vote is a huge victory for all LBM dealers across the country," said Scott Lynch, executive vice president of the National Lumber and Building Material Dealers Association (NLBMDA), in a statement. "This is a huge relief for businesses of all sizes and we urge President Obama to sign the repeal legislation so that businesses can continue working and improving the economy."
The National Association of Home Builders (NAHB) also praised the accomplishment.
"In testimony before Congress and in 'key vote' letters to House and Senate leaders, we have spelled out how failing to overturn these rules would kill jobs and place a major paperwork and cost burden on home builders," said NAHB chairman Bob Nielsen. "We applaud Congress for acting to rectify this situation and urge the president to quickly sign this measure into law."