RVDA Joins Coalition to Help Small Business Generate Capital

RVDA has joined over 75 Net Operating Loss Coalition Partners in calling for federal legislation to extend the net operating loss (NOL) period for small businesses.  An extended NOL carryback period is a proven economic stimulus measure, one that can deliver vital help to our nation's struggling economy.  Because capital to continue operations (payroll, debt payments, etc.) is extremely tight, if available at all, the need to transform a future tax benefit into cash today is critical to maintain otherwise viable businesses.

In the past, Congress has used NOL carryback relief as a ready tool to help lift the economy out of recession.  A temporary extension of the NOL carryback period would provide an immediate infusion of cash for those companies most in need.  Under current law, businesses may carryback losses for only two years, generating a tax refund to the extent of taxes paid in those years.  Losses that cannot be absorbed in these two years are carried forward, for use against future taxes that may be owed. 

RVDA and the NOL Coalition strongly support enacting legislation at the earliest opportunity by working with President-Elect Obama's Transition Team.  We hope to gain the incoming administration's support for extending the carryback period for net operating losses (NOLs) to 5 years from the current 2 year allowance for tax years ending in 2008 and 2009.  It should also include AMT (alternative minimum tax) NOL relief by temporarily suspending the 90% limitation on the utilization of AMT NOLs for this period.

RVDA will keep members informed on this issue.  A specific bill is expected to be introduced early in the next session of Congress.  Visit www.rvda.org for updates.