As part of the Parity for Main Street Employers coalition, ABC opposed a proposal from Democrats in the U.S. House of Representatives that would raise taxes on small construction businesses through the repeal of the bipartisan-supported net operating loss carryback and loss limitation provisions previously included in the CARES Act. The CARES Act included a five-year carryback for losses incurred in 2018, 2019 and 2020, and suspended the loss limitation rules for those years to provide critical relief for pass-through businesses with large losses.
“This proposed repeal is deeply disappointing,” the coalition wrote. “It runs counter to the bipartisan support similar policies have received in the past (including the House Democratic alternative bill released on March 23), it tilts the field by allowing public companies to carry back losses while blocking the same treatment for smaller family-owned businesses, and it extends the tax hike out beyond 2025, when the existing limitations were set to expire.
“At a time when 20 million Americans are out of work and millions of businesses are closing their doors, the HEROES Act would raise their taxes. The Main Street Employers coalition strongly supports the NOL and loss limitation relief provided by the CARES Act and calls on Congress to keep this important relief intact as it considers additional responses to COVID-19,” according to the coalition.
ABC previously joined more than 100 national business trade groups in a letter of support for the CARES Act provision.