2007 Lobbying Tax Deduction

In 1993, the U.S. Congress enacted the Omnibus Budget Reconciliation Act that contained provisions affecting trade associations.  The Act provided that taxpayers will no longer be able to deduct from their federal income taxes any portion of the association dues attributable to that association's "lobbying activities" as an ordinary and necessary cost of doing business.

For 2007, NAHB estimates that the non-deductible portion of national dues applicable to lobbying is 12%.  Thus, per member this amount is $18.00 and is not eligible for deduction as a business expense.

For 2007, the Texas Association of Builders estimates that the non-deductible protion of state dues is 52% or $42.38.  This means that if you are an associate member and pay $345, only $284.62 of your dues is eligible for a business expense deduction.  If you are a builder member and pay $375, only $314.62 is eligible.

Please feel free to contact the TABA office if you have further questions.

[ Back ]