NAHB Member Saves $100K on Infrastructure Measure NAHB Championed

Membership
Published

In a great example of the value of NAHB membership, President Biden today signed infrastructure legislation into law that includes a key provision fought for by NAHB that will save many members thousands of dollars and one member at least $100,000.

Of importance to the housing community, the Infrastructure Investment and Jobs Act contains one provision that NAHB has been fighting to enact for the past three years that restores an exemption for water and sewer contributions in aid of construction (CIAC). This provision will save some developers as much as 40% on water and sewer costs and one Tennessee builder and developer said it will save his business $100,000 on one development alone.

The background of CIAC can be traced to the Tax Cuts and Jobs Act enacted in 2017, when Congress eliminated an exemption for water and sewer CIAC, making such contributions taxable if the utility is a privately-owned, for-profit entity.

As a result, in areas served by a corporate, for-profit water utility, when a builder installs new water or sewer infrastructure to support additional housing — at no cost to the existing residents — that infrastructure is taxed by the federal government. In some states, affected utilities were required to pass this tax liability to the developer, resulting in CIAC surcharges as high as 40%.

The new law, which is effective for CIAC contributions made after Dec. 31, 2020, ends this tax liability and could not come soon enough for James Carbine, a residential builder/developer in the Nashville area.

“The taxes alone on a sewer system by a private utility that we are starting to develop were $100,000,” said Carbine. “This subdivision is 50 lots and that’s $2,000 per lot. And if a lot cost goes up by $2,000, the house sales price goes up five times that to $10,000. This new law that NAHB fought for not only saves the developer money, it also promotes housing affordability.”

Carbine has been an NAHB member for 35 years and says the investment is well worth it.

“My annual dues are $700. This year alone I have saved $100,000 because of NAHB’s efforts. That’s a pretty good return,” he said.

Sewer systems with private utilities in the Nashville area very prevalent, so Carbine noted the new law “will save builders a lot of money.”

“This is something our members need to be aware of,” he added. “This is just one item that NAHB has done this year and there’s a long list of things that are sometimes difficult to equate to dollars that help our industry nationwide. I know NAHB has worked on this issue since it went into effect. It took three years and it’s a big win.”

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Advocacy | Economics

Jul 24, 2026

Podcast: Exploring Next Steps on the ROAD to Housing

On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez discuss what’s next following the enactment of the 21st Century ROAD to Housing Act, how state and local HBAs are tackling key issues in their areas, and the latest economic data.

Advocacy

Jul 24, 2026

Latest Tariff Actions Add Uncertainty to Housing Market

Recent tariff developments could create more uncertainty for home builders over building material supply chains and pricing.

View all

Latest Economic News

Economics

Jul 27, 2026

Share of Apartments Built in Buildings with 50+ Units Moves Higher in 2025

Following the highest number of multifamily completions in nearly 40 years in 2024, completions declined in 2025 to 484,000, according to NAHB analysis of the Census Bureau’s Survey of Construction. For the ninth consecutive year, a majority of new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.

Economics

Jul 24, 2026

New Home Sales Edge Higher as Affordability Challenges Persist

Affordability challenges continued to weigh on the new-home market in June, as elevated mortgage rates, rising inflation and broader economic uncertainty kept many prospective buyers on the sidelines.

Economics

Jul 23, 2026

Acquisitions Increasing Among Home Builders

At the start of 2026, most home builders predicted that high mortgage rates and hesitancy among buyers would be their toughest challenges this year. They weren’t wrong: the 30-year mortgage rate averaged 6.49% in June and housing demand has weakened, as reflected by flat mortgage applications in the first half of the year.