Government Connection

GCCA Calls on Senate Finance Committee Leadership to Continue to Support Net Operating Loss Relief

On Friday, February 5, 2021, GCCA joined over 80 organizations calling on the Senate Finance Committee leadership to continue to support the Net Operating Loss (NOL) relief which was enacted in the CARES Act. The CARES Act included a 5-year carryback for losses incurred in 2018, 2019, and 2020. It also suspended the loss limitation rules for those years. Absent the loss limitation relief, pass-through businesses with large losses would have been unable to access the NOL relief. With small business revenue declining by an average of 30 percent in the past year, this provision was necessary to ensure businesses of all sizes benefitted from the policy. The coalition effort was sent in response to a letter signed by 120 House and Senate Democrats who recently wrote Speaker Nancy Pelosi and Majority Leader Chuck Schumer calling for the retroactive repeal of this NOL relief, calling it a “special-interest giveaway”. This ill-advised effort would result in a massive, retroactive tax hike on thousands of businesses who, by definition, have suffered losses in recent years and need help during the pandemic.

 

READ THE LETTER HERE.

February 05, 2021

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