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ICBA Praises President Obama for Signing ICBA Tax Priorities into Law

NOL Relief and Homebuyer Tax Credit Will Boost Economy

Washington, D.C. (November 6, 2009)—The Independent Community Bankers of America (ICBA) today praised President Obama for signing top ICBA tax priorities, including the five-year Net Operating Loss (NOL) relief measure and the expanded homebuyer tax credit, into law as part of the Worker, Homeownership and Business Act of 2009 (H.R. 3548).

“ICBA thanks Congress for swiftly passing and the Obama administration for quickly signing into law these key ICBA tax initiatives, which will help bolster the economy and help our nation’s more than 8,000 community banks continue to lend in communities throughout the country,” said R. Michael Menzies, ICBA chairman and president and CEO of Easton Bank and Trust Co., Easton, Md. “In particular, the extension of the NOL carryback from two years to five will aid more of America’s 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 praises 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.

  • 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 allows 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 also thanks Senate Finance Chairman Max Baucus (D-Mont.) and ranking member Chuck Grassley (R-Iowa) and Reps. Richard Neal (D-Mass.) and Pat Tiberi (R-Ohio) for their help in securing the NOL relief. For more information on the NOL and homebuyer tax relief efforts, visit ICBA’s Web site at www.icba.org.