Colored Stones

Save E-mail Print Most Popular RSS Reprints

NRF applauds passage of 'carryback' legislation

November 06, 2009

Washington--The National Retail Federation (NRF) is welcoming passage of legislation that will allow retailers and other businesses to lengthen the period during which they can "carry back" current losses to claim a tax refund from previous years when they made a profit.

The House voted yesterday 403-12 to approve Senate amendments to H.R. 3548, the Unemployment Compensation Extension Act of 2009, and sent the measure to President Obama for his signature. The bill extends unemployment insurance benefits but also includes a provision added in the Senate that will expand businesses' ability to "carry back" net operating losses suffered during the current recession to claim a refund from taxes paid in previous years.

"Today's vote comes at a crucial time because most retailers see between a quarter and a half of their annual sales during the final quarter of the year as consumers buy gifts for the holidays," NRF Vice President and Tax Counsel Rachelle Bernstein said in a media release. "If retailers can't find a way to finance inventories for the 2009 holiday season, many could be forced to close stores, lay off workers or even go out of business. This will help keep that from happening."

Existing law allows companies to carry back a loss for up to two years. Economic stimulus legislation enacted in February expanded the period to five years for companies with up to $15 million in annual gross receipts, but larger businesses were still restricted to two years.

The provision included in the unemployment bill will expand the five-year period to include all businesses that suffer a loss regardless of size, and will give companies the choice of using the carryback for losses from either 2008 or 2009 rather than just 2008 as provided in the stimulus bill.

In the fifth year, the carryback will be limited to 50 percent of a company's taxable income for that year, but any loss not utilized can be "carried forward."

Small companies that took a five-year carryback under the stimulus bill will be able to carry back 2009 losses as well.

The proposal is estimated to provide $10.4 billion in tax relief over 10 years.

The provision was added to the bill by Dem. Senate Majority Leader Harry Reid of Nevada and Dem. Senate Finance Committee Chairman Max Baucus of Montana, but was based on legislation sponsored in the Senate by Baucus and fellow Rep. Finance Committee member Senator Olympia Snowe of Maine, and in the House by Dem. Select Revenue Measures Subcommittee Chairman Richard Neal of Massachusetts and Rep. Ranking Member Patrick Tiberi of Ohio.

"The sponsors of these bills have been telling their fellow members of Congress for months that this is about saving and creating jobs, and if it wasn't enacted soon more jobs would be lost," Bernstein said. "That message has been heard, and the work that has been done is going to help tens of thousands of retail workers keep their jobs at a time when jobs are hard to find."

The NRF has led the retail industry's efforts for the five-year carryback, explaining to Congress that many retailers hadn't seen sufficient profits before the current recession for a two-year carryback to be adequate. The NRF testified on the issue before the House Small Business committee in September.

The NRF is the largest retail trade association in the world, with members including department, discount, drug, grocery, independent and specialty stores, catalog merchants, chain restaurants and e-tailers, as well as the industry's key trading partners of retail goods and services.

For more information about the NRF, visit its Web site, NRF.com.
Save E-mail Print Most Popular RSS Reprints
Post a Comment
* Required field
* Author:
* Comment:
 

More Colored Stones

Richard Hughes
Ruby, sapphire expert Hughes wins Bonanno award

Richard W. Hughes, known for his adventure-laden travelogues, his writings on undisclosed gemstone treatments and as the author of Ruby and Sapphire, has won the 2010 Antonio C. Bonanno Award For Excellence in Gemology, the Accredited Gemologists Association has announced. Read More

'Vivid Pink' up for sale at Christie's
Price is right for pearls this holiday
More Colored Stones

More Like This

Design Portfolio

advertisement

Video

Small multi video player located on right rail of NJN site

advertisement

Sponsored by:

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.
Newsletters
Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.
Reader Connect
ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.
Jewelry Yellow Pages
Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.
Classifieds
Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.
NJN Customer Connect
CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.

advertisement