Take Action and Support Net Operating Loss for Companies of All Sizes

Transcription

1 Take Action and Support Net Operating Loss for Companies of All Sizes Tax relief for companies of all sizes is critically needed for many businesses to survive the economic downturn. Net Operating Loss (NOL) relief can help companies in a broad crosssection of industries weather the current economic conditions. The tight credit market has significantly reduced traditional business lending. NOL tax credits can provide a much needed alternative source of capital. NOL relief will assist viable companies in the preservation of their businesses by allowing them to meet payroll, retain their work force, help avoid additional layoffs, and stabilize the business environment. Unfortunately, the arbitrary $15 million threshold of NOL relief excludes medium and largesized business. Contact your member of Congress Today! 5 Simple Actions That You Can Do: 1. Send a letter to your member of Congress You can modify a sample letter (below) and deliver it to your member of Congress via standard mail 2. a letter to your member of Congress You can modify a sample letter (below) and deliver it to your member of Congress via standard mail 3. Call your legislators office Use the talking points and fact sheet to help you when you talk with your legislators office 4. Schedule a meeting with your legislator A personal visit with your representative is the best way to deliver your viewpoint, even if that visit is with a staff person. You can arrange a visit either in the district office or in Washington. 5. Invite your legislator for a tour of your facility A tour of your facility is an excellent opportunity for you to build a strong relationship with your representative. Your representative and their staffers will appreciate the good product you make and the good work you do. They ll be much more likely to keep you in mind in the future and to understand how pending legislation or regulations might affect you. The legislator will also like a plant tour because it puts them in touch with more voters. IPC will gladly help you set up a plant tour.

2 NET OPERATING LOSS NEEDED FOR COMPANIES OF ALL SIZES downturn. Net Operating Loss (NOL) is a special tax relief that allows businesses to offset one year's losses against another year's income. The NOL relief for a company can be used to recover past tax payments or reduce future tax payments. The American Recovery and Reinvestment Act of 2009 (ARRA) provided NOL relief for businesses with gross annual receipts of $15 million or less. Unfortunately, the arbitrary $15 million threshold of NOL relief excludes medium and large-sized business. Background NOL relief aids in stabilizing businesses at a time when many businesses are struggling. The NOL refunds, also known as carrybacks, will provide cash needed now for companies to fund operations, make needed investments, and in some cases, stay open for business. A NOL generally occurs when a company has incurred more expenses than revenues during a taxable period. A NOL is the amount by which deductions exceed gross taxable income, resulting in a negative taxable income. Eligible companies can receive tax refunds by applying NOLs to taxes during the previous five years. Companies also have the option of carrying the loss forward twenty years to future income tax payments thereby reducing payments they will need to make in future periods. Why is Net Operating Loss Relief Important? NOL relief can help companies in a broad cross-section of industries weather the current economic conditions. The tight credit market has significantly reduced traditional business lending. NOL tax credits can provide a much needed alternative source of capital. NOL relief will assist viable companies in the Because Net Operating Losses for 2009 are projected to be greater than 2008, NOL relief should be expanded to encompass 2009 and beyond. Allowing businesses to recover current losses now will have a positive effect on our economy. Support Net Operating Loss Relief Legislation IPC supports NOL relief for companies of all sizes. IPC also supports the extension of NOL relief for 2009 and beyond. Congress should enact S. 823 or H.R. 2452, The Net Operating Loss Carryback Act, that would expand current law to include small, medium and large sized companies. For more information please contact Ron Chamrin, IPC manager of government relations at [email protected] or

3 TALKING POINTS: NET OPERATING LOSS RELIEF FOR COMPANIES OF ALL SIZES INTRODUCTION Introduce yourself and your company TALK ABOUT YOUR ISSUE NOL is a special tax relief that allows my company to offset one year's losses against another year's taxable income NOL relief for my company can be used to recover past tax payments or reduce future tax payments Because the tight credit market has significantly reduced traditional business lending, NOL tax credits can provide a much needed alternative source of capital The immediate cash refund from NOL relief will allow companies to retain jobs and continue operations The NOL refunds, also known as carrybacks, will provide cash needed now to fund operations, make needed investments, and in some cases, stay open for business NOL relief is needed not just for small businesses, but also medium and large sized companies DON T FORGET TO TELL YOUR CONGRESSMAN WHAT THEY CAN DO TO HELP Support Senate Bill 823 and House Bill 2452, The Net Operating Loss Carryback Act Expand current law to include small, medium and large companies Extend the law to 2009

4 Month, Day, Year Honorable YOUR SENATOR Address Line United States Senate Washington, DC Dear Senator MEMBER OF CONGRESS: On behalf of YOUR COMPANY, located YOUR CITY/TOWN, STATE I am writing to express support and urge the passage of the S. 823, a bill that would amend the Internal Revenue Code of 1986 to extend Net Operating Loss (NOL) Tax relief through 2009 and to expand current law to include small, medium and large sized companies. NOL relief aids in stabilizing businesses at a time when many businesses are struggling. The NOL refunds, also known as carrybacks, will provide cash needed now for companies to fund operations, make needed investments, and in some cases, stay open for business. downturn. NOL is a special tax relief that allows businesses to offset one year's losses against another year's income. The NOL relief for a company can be used to recover past tax payments or reduce future tax payments. The American Recovery and Reinvestment Act of 2009 (ARRA) provided NOL relief for businesses with gross annual receipts of $15 million or less. Unfortunately, the arbitrary $15 million threshold of NOL relief excludes medium and large-sized business. It is important extend NOL relief to companies of all sizes. To weather the current economic conditions. The tight credit market has significantly reduced traditional business lending. NOL tax credits can provide a much needed alternative source of capital. NOL relief will assist viable companies in the MY COMPANY manufactures YOUR PRODUCT which are the foundation of LIST WHAT YOUR PRODUCTS GO INTO SUCH AS America s high tech products including Defense, Telecommunication equipment, and Homeland Security devices. Because Net Operating Losses for 2009 are projected to be greater than 2008, NOL relief should be expanded to encompass 2009 and beyond. Allowing businesses to recover current losses now will have a positive effect on our economy. Accordingly, enactment of S. 823 would allow businesses to recover current losses now and will have a positive effect on our economy. We thank you for supporting this much needed legislation. I look forward to working with you and your colleagues on this and future legislation to assist the electronic and interconnect industries and to secure our Nation s economic future and job growth. Sincerely, YOUR NAME TITLE

5 Month, Day, Year Honorable YOUR REPRESENATITIVE ADDRESS LINE United States House of Representatives Washington, DC Dear Honorable MEMBER OF CONGRESS: On behalf of YOUR COMPANY, located YOUR CITY/TOWN, STATE I am writing to express support and urge the passage of the H.R 2452, a bill that would amend the Internal Revenue Code of 1986 to extend Net Operating Loss (NOL) Tax relief through 2009 and to expand current law to include small, medium and large sized companies. NOL relief aids in stabilizing businesses at a time when many businesses are struggling. The NOL refunds, also known as carrybacks, will provide cash needed now for companies to fund operations, make needed investments, and in some cases, stay open for business. downturn. NOL is a special tax relief that allows businesses to offset one year's losses against another year's income. The NOL relief for a company can be used to recover past tax payments or reduce future tax payments. The American Recovery and Reinvestment Act of 2009 (ARRA) provided NOL relief for businesses with gross annual receipts of $15 million or less. Unfortunately, the arbitrary $15 million threshold of NOL relief excludes medium and large-sized business. It is important extend NOL relief to companies of all sizes. To weather the current economic conditions. The tight credit market has significantly reduced traditional business lending. NOL tax credits can provide a much needed alternative source of capital. NOL relief will assist viable companies in the MY COMPANY manufactures YOUR PRODUCT which are the foundation of LIST WHAT YOUR PRODUCTS GO INTO SUCH AS America s high tech products including Defense, Telecommunication equipment, and Homeland Security devices. Because Net Operating Losses for 2009 are projected to be greater than 2008, NOL relief should be expanded to encompass 2009 and beyond. Accordingly, enactment of H.R 2452 would allow businesses to recover current losses now and will have a positive effect on our economy. We thank you for supporting this much needed legislation. I look forward to working with you and your colleagues on this and future legislation to assist the electronic and interconnect industries and to secure our Nation s economic future and job growth. Sincerely, YOUR NAME TITLE