The National Marine Manufacturers Association is leading a 71-member coalition urging Congress to extend the net operating loss carryback period to five years from the current two-year allowance.
A net operating loss is a period when a company’s expenses exceed its profits, resulting in negative taxable income. Currently, a company can use its NOL to offset taxes owed on profits made in the two previous years.
Extending the carryback period provides companies most in need with increased short-term liquidity as they struggle to keep their doors open, according to the NMMA.
“Congress has used NOL carryback relief in the past to help manufacturers, retailers and companies across all sectors,” said NMMA president Thom Dammrich. “We encourage legislators to use this tool again to enable these companies to retain jobs and avoid going out of business.”
To read the coalition’s letters on its tax policy recommendations, click here and then click on “Economic Relief Initiative.”
For information, contact NMMA counsel Bryan Zumwalt at (202) 737-9764; email@example.com.