Financial Executives International's Committee on Taxation has written to congressional leaders encouraging them to include more tax relief provisions for businesses in the economic stimulus package.
In the letter addressed to House and Senate leadership, the committee outlined 10 recommendations to further stimulate the economy, including the extension of a strengthened research and development tax credit, a temporary extension of the carryback period for net operating losses to five years, and a temporary change in the treatment of capital losses.
The letter from the FEI committee recommends that Congress and President-elect Barack Obama extend bonus depreciation and increase Section 179 expensing provisions; temporarily allow taxpayers to receive a refund of their alternative minimum tax prepayments in lieu of bonus depreciation; temporarily extend the carryback period for net operating losses to five years and waive the 90 percent limitation for the AMT; extend the general business credit carryback period from one year to five years; and allow carrybacks and carryforwards to offset 100 percent of a taxpayer's regular tax and AMT.
The letter also recommends a temporary change in the treatment of capital losses; multi-year extension of a strengthened R&D tax credit; repeal of the 3 percent withholding requirement for government payments; rules allowing foreign subsidiaries of U.S companies to lend or otherwise send money to the U.S without adverse tax implications; temporary relief from pension-funding requirements; and expansion of tax credits for new hires or reverse layoffs.
