FOR IMMEDIATE RELEASE
ICBA Thanks Congress for Passing Top ICBA Tax Priorities
NOL Relief and Homebuyer Tax Credit Will Boost Economy
Washington, D.C. (November 4, 2009)—The Independent Community Bankers of America (ICBA) today praised Senate lawmakers for backing top ICBA tax priorities including the five-year Net Operating Loss (NOL) relief measure and the expanded homebuyer tax credit as part of H.R.3548, the Worker, Homeownership and Business Act of 2009. ICBA calls on Congress to quickly pass this legislation and send it to President Obama to sign into law.
“When the economy first slipped into a decline, ICBA recommended and advocated a robust homebuyer tax credit and expanded NOL as top tax priorities to be included in any economic recovery package. ICBA appreciates the Senate’s passage of these beneficial tax measures that will help many of the nation’s more than 8,000 community banks and the small businesses they serve,” said Camden R. Fine, ICBA president and CEO. “The extension of the NOL carryback from two years to five will aid more businesses that suffered losses during the deep recession and will improve their cash flow and ability to support the economy as it begins to recover.”
The expanded NOL measure is a top ICBA tax priority and is especially important because banks have limited ability to use their deferred tax assets in Tier 1 regulatory capital. ICBA also praised the extension of the homebuyer tax credit because it’s a prime way to help stabilize home prices, the real- estate market and the broader financial sector.
- In sum, the $8,000 homebuyer tax credit is extended to contracts signed by April 30, 2010. A new $6,500 tax credit is available for certain homeowners moving to a different home. Expanded income caps are now $150,000 for singles and $225,000 for joint filers using the credit.
- The NOL relief will allow more businesses to receive a tax refund by offsetting 2008 or 2009 losses against profits in the previous five years (limited to 50 percent for the year-five carryback).
ICBA thanks the Senate for passing this vital legislation and will continue to advocate removing punitive TARP restrictions on the use of the NOL. For more information on the NOL and homebuyer tax relief efforts, visit ICBA’s web site at www.icba.org.