Senate Democrats hoping to win approval of the Finance Committee’s controversial economic stimulus bill are emphasizing the support the package is receiving from parts of the homebuilding industry.

The support of the homebuilding industry, which gives much more in political contributions to Republicans than Democrats, could be key given the tight votes on the package expected this week.  

The lawmakers and industry leaders hailed a $14.4 billion tax break in the Finance package that would help homebuilders.

The provision would loosen manufacturers’ tax liability by allowing them to use their 2007 and 2008 losses to claim a refund on any taxes paid over the past five years. Sen. Kent Conrad (D-N.D.), a co-author of the provision, said it would help stem operating and tax losses in an industry that employs 3.5 million Americans but has lost 300,000 of those jobs over the past three years.

The National Association of Home Builders had pushed for such a provision to be included in an economic stimulus bill.
Conrad said the homebuilders supporting the Finance package were helping with lobbying calls to Republicans. “They’re making calls for us. They’re energized,” Conrad said. “That’s how serious this situation is … We’re talking about survival here, for many of these companies.”

According to the Center for Responsive Politics, homebuilders have given $2.7 million to Republicans so far in the 2007-2008 cycle compared to $1.4 million to Democrats. In the 2005-2006 cycle, homebuilders gave Republican candidates $6.9 million compared to $2.1 million to Democrats.

Top brass from three of the country’s top home manufacturers — Tim Eller, CEO of Dallas-based Centex, Stuart Miller, CEO of Miami-based Lennar Homes and Lawrence Gotlieb, vice president of public affairs for Los Angeles-based KB Homes — attended Tuesday’s press conference.

“We support whatever party works to promote homeownership,” said Gotlieb, who acknowledged his industry has traditionally given more to Republicans than Democrats. “The Democrats were the ones who spoke up about the issue. They recognized the instability.”

Only three Republicans supported the Finance package in committee, and it is not clear whether Democrats will win the 60 votes necessary under Senate rules for the package to be approved. Senate GOP leaders favor a slimmer measure worked out in a deal between the Bush administration and Democratic and Republican leaders in the House.

Besides Conrad and Baucus, Debbie Stabenow (D-Mich.) and Ken Salazar (D-Colo.) also appeared at the press conference and were involved in writing the provision.