Persistence, Persuasion Pay Off with NOL
This week Congress passed – and this morning President Obama signed – a $24 billion bill to help the unemployed and support the housing market – with a Net Operating Loss (NOL) provision included as part of the deal – a major part of the Council’s 2009 legislative agenda.
The bill extends unemployment benefits that were due to expire for an additional 14-20 weeks. It also renews an $8,000 tax credit for first-time home buyers, while also expanding it to cover many other home purchases – another priority BAC members advocated for while in D.C. last month. The NOL provision allows businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years – extending it from two years.
NOL may not roll of the tongue, or come up often in conversation, but its more than just an accounting term – it’s about jobs and economic survival. An enlightened NOL tax policy allows businesses to weather tough times, maintain their payrolls and avoid layoffs.
A delegation of Bay Area Council members met with Congressman Richard Neal (D – Massachusetts), leader of the NOL fight in Congress, on our May trip to Washington D.C. – and again last month – to offer their support and expertise on the issue. In addition, it was a key issue while meeting with other members of Congress to support the extension. The Bay Area Council’s Urban Development Working Group has also been engaged on the issue and coordinated broader outreach to Congress by the Bay Area business community. The Bay Area Council is happy to have played a role in such a huge win for business.