Issue link: https://read.dmtmag.com/i/288177
www.BoatingIndustry.com 24 | Boating Industry | April 2014 [ Washington Update ] www.BoatingIndustry.com ago refl ects the progress the industry and others have made on the issue. "A lot more needs to be done, but if you go back to the 2008, 2009 timeframe, nobody knew what this was," said NMMA legislative counsel Jeff Gabriel. "We thought we had a Mount Everest to climb and this industry has done a wonderful job on it." That progress shows the importance of a concerted industry effort, Ga- briel said, as it has been everyone from NMMA staff to manufacturers to dealers to boaters making sure their Congressional representatives under- stand the issue. "This industry, working with a lot of stakeholder partners, has made an amazing difference in the understanding on the hill," Gabriel said. "That comes directly out of the years of toiling and hard work that the industry has done." TAXES While there's been no major action lately, tax reform continues to be a hot issue in Washington. For the marine industry, one of the biggest concerns in recent years have been the frequent proposals to modify or eliminate the second-home mort- gage interest deduction. For many owners, the interest on loans for boats that meet certain requirements including a head and galley can be deducted. Last summer, Reps. Mike Quigley, D-Ill., and Tim Walz, D-Minn., in- troduced HR 2563, the "Ending Taxpayer Subsidies for Yachts Act," which would eliminate the second mortgage deduction for boats, but leave it intact for cabins, RVs, etc. A similar provision was included in a broader bill intro- duced earlier in the year by Rep. Keith Ellison, D-Minn. There is little reason to expect action on those efforts that specifi cally target the marine industry and Rep. Quigley has distanced himself from the effort after getting pressure from his constituents, Gabriel said. "It was a political stunt by Congressman Quigley, quite frankly," Gabriel said. "He's trying to draw an issue that's not there. It didn't generate enough support for it to go anywhere." These efforts represent a fundamental misunderstanding of who the de- duction benefi ts – working class boat owners and factory employees, Ga- briel said. The ultra-rich who purchase megayachts are already not using the deduction for a number of reasons from paying cash to maxing out their deductions to registering ownership under an LLC. "That said, the fact that he dropped the bill and it gets mentioned has everyone highly focused on the issue and if it would ever get anywhere," Gabriel said. At this point, the most likely way the deduction would get eliminated is if it's part of a larger tax reform package that included all second homes. It was specifi cally identifi ed late last year as one of 12 "Top Tax Loopholes" by the Democratic staff of the Senate Budget Committee: "Stop Tax Subsidies for Yachts and Vacation Homes — Eliminate deductions used by the wealthiest Americans that subsidize yachts and vacation homes." The change would save taxpayers about $15 billion over 10 years, it was estimated. HEALTHCARE REFORM The high-profi le website failures of Patient Protection and Affordable Care Act – aka Obamacare – have gotten plenty of coverage this year. But be- yond those issues, there have also been several changes that could affect your business. Most notably, the Internal Revenue Service announced in February that employers with less than 100 workers wouldn't have to provide health in- surance to those employees until 2016. In order to qualify for the delay, companies have to certify to the government that they haven't released employees to get under that 100-employee threshold and that they won't drop health plans they already offer. Under the original act, companies with more than 50 full-time employ- ees were going to be required to offer insurance in 2014 or face fi nes of up to $3,000 per employee. In July 2013, that requirement was changed to 2015 and now those companies with between 50 and 100 employees will have an additional year to comply. Larger fi rms have to cover at least 70 percent of employees starting next year, the IRS said. Another exemption of interest to the boating industry included in the 227-page ruling is that employers won't have to cover seasonal workers that are employed less than six months. For more on healthcare reform, be sure to check out our "Preparing your company for healthcare reform" in our January issue and online at BoatingIndustry.com. BOATING GOES GRASSROOTS NMMA is trying to grow the industry's grassroots lobbying efforts through a new website, BoatingUnited.com. The site, launched in February, is designed to be an online community for marine manufacturers, boating businesses, enthusiasts and supporters. The site is open to NMMA members and nonmembers. "It's an open community for any stakeholder with a vested interest in the industry," said Michael Lewan, NMMA's grassroots and government relations manager. "We really picture it as being the home of the recreational boating industry's grassroots efforts – 80 million people we can potentially tap into. We want to give them the resources and tools to come together and present a unifi ed and powerful message." Through Boating United, users can sign up to receive updates on legislation affecting the industry, learn more about specifi c bills and contact their members of Congress. Boating United's "action center" allows users to send pre-drafted letters to their elected representatives or for users to write their own. P22x27-BI14APR-GovtUpdate.indd 24 3/13/14 4:25 PM