ISSA Urges Congress to Support General Business Tax CreditsJune 29, 2020
ISSA has joined more than 100 associations representing industries that employ millions of Americans, who have played a critical role in helping the country respond to COVID-19 while struggling with the economic fallout caused by the pandemic, to urge U.S. Congress to adopt legislation to accelerate the use of general business tax credits. Such legislation would provide liquidity to companies to help with reopening and rehiring.
In a letter to congressional leaders, the signatories explained that “Current law can prevent companies from fully utilizing general business tax credits, which include more than two dozen provisions, such as the research and development tax credit, work opportunity tax credit, and renewable energy tax credits. Moreover, the economic downturn wrought by the pandemic is likely to reduce taxable income, further reducing the utility of these incentives.” Accordingly, the signatories suggested that, by amending Section 38 of the Internal Revenue Code to temporarily make these credits refundable on an elective basis, struggling companies will “have immediate access to a source of liquidity that can help provide increased cash flow to support operations, including rehiring workers.”
“While the country begins to reopen, the need for liquidity remains as urgent as ever,” said John Nothdurft, ISSA Director of Government Affairs. “By temporarily giving companies the option to monetize their general business credits, Congress can help ensure that the recovery is as strong as possible. ISSA looks forward to working with Congress on enacting this important proposal.”
ISSA is working diligently to support the full spectrum of the cleaning industry in the U.S. and worldwide during the COVID-19 pandemic, including providing a variety of government affairs resources to support its members during this challenging time. For questions regarding ISSA’s advocacy efforts, including the association’s response to COVID-19, please contact [email protected].