WASHINGTON, D.C. – Yesterday June 10, 2010, a bipartisan group of seven lawmakers proposed tax relief for tourism and fishing businesses all along the Gulf coast that are being hammered by the oil spill. In Florida alone, hotels, restaurants, the fishing industry and related businesses are looking at losses amounting to $10 billion, according to a recent estimate from the University of Central Florida.
In response, Sens. Bill Nelson (D-FL), Mary Landieu (D-LA), George LeMieux (R-FL), David Vitter (R-LA), Richard Shelby (R-AL), Roger Wicker (R-MS) and Thad Cochran (R-MS) have introduced legislation that would allow fishing and tourism-related businesses to carry back their losses from the oil spill for an additional three taxable years. In other words, they could amend returns for the last five years and receive a refund for past taxes paid.
“The spill has severely damaged the way of life for many businesses in the Gulf Coast area, particularly those involved with fishing and tourism,” Nelson said. “We want to ensure the long-term viability of these industries that are such a vital part of our states’ cultures.”
This proposed tax break is not the first time that Congress has decided that special circumstances warrant government financial assistance. After Hurricane Katrina in 2005, Congress created a similar rule for local businesses suffering losses after the storm. In 2009, they did the same for businesses affected by Midwestern storms, tornadoes, and floods.
More specifically, the Nelson-Landrieu measure extends the so-called net operating loss-carry back period from two years to five years. It would mean businesses with losses this year could amend returns from the past five years to reflect those losses. It would cover hotels, entertainment, restaurants, and other related businesses in counties and parishes along the Gulf coast, and include commercial and charter fishing businesses.
In response, Sens. Bill Nelson (D-FL), Mary Landieu (D-LA), George LeMieux (R-FL), David Vitter (R-LA), Richard Shelby (R-AL), Roger Wicker (R-MS) and Thad Cochran (R-MS) have introduced legislation that would allow fishing and tourism-related businesses to carry back their losses from the oil spill for an additional three taxable years. In other words, they could amend returns for the last five years and receive a refund for past taxes paid.
“The spill has severely damaged the way of life for many businesses in the Gulf Coast area, particularly those involved with fishing and tourism,” Nelson said. “We want to ensure the long-term viability of these industries that are such a vital part of our states’ cultures.”
This proposed tax break is not the first time that Congress has decided that special circumstances warrant government financial assistance. After Hurricane Katrina in 2005, Congress created a similar rule for local businesses suffering losses after the storm. In 2009, they did the same for businesses affected by Midwestern storms, tornadoes, and floods.
More specifically, the Nelson-Landrieu measure extends the so-called net operating loss-carry back period from two years to five years. It would mean businesses with losses this year could amend returns from the past five years to reflect those losses. It would cover hotels, entertainment, restaurants, and other related businesses in counties and parishes along the Gulf coast, and include commercial and charter fishing businesses.
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