The bill is H.R. 3548.
The House passed the bill yesterday and the President is expected to sign it today.
You should consult your tax advisor immediately, as this bill provides for immediate tax refunds on taxes that your business has paid over the immediate 5 years, instead of the the usual 2 years for the tax period 2008 OR 2009 (not both!) There are other terms regarding the fifth year that we will not get into here.
The existing law per the stimulus bill only allowed for losses incurred in 2008, the language that PMPA worked to get passed added coverage for 2009.
Thanks to all who responded to our Action Alert October 23. Your action and support of this important provision has made a difference!
Tag: Net operating Loss Carry Back Option
PMPA is actively working on Capitol Hill,
as well as with the Administration and business groups, to extend the Net Operating Loss (NOL) carry-back tax provision to support companies who will incur losses in 2009.
Through our lobbying firm, The Franklin Partnership, we are hearing that Senate Democrats are considering adding a four-year net operating loss carry-back provision to bills being considered this week. The tax provision would enable unprofitable companies to obtain immediate cash refunds on taxes they paid over the prior four years, instead of the usual two years.
The proposal floated by Senate Majority Leader Harry Reid (D-NV) and Senate Finance Chairman Max Baucus (D-MT) falls just short of our hope to extend refunds to cover the previous five years. However, this is a VERY important step needed to help small manufacturers who are suffering today and inject immediate cash in to their businesses. Extending the loss carry back period to 5 years will allow small businesses to recover cash that could be used to help pay debt or invest in equipment and people in this difficult time.
Please support PMPA’s efforts on the NOL provision and contact your Senators and Representative, by clicking here, to urge them to support extending the NOL carry-back provision to five years and covering losses incurred in 2009.
Its really up to you.
http://capwiz.com/pmpa/issues/alert/?alertid=14223241