Home / Knowledge / News / Legislation Bill will help save retail jobs, NRF
Legislation Bill will help save retail jobs, NRF
06
Nov '09
The National Retail Federation welcomed passage of legislation that will bring recession-plagued retailers and other businesses more than $10 billion in badly needed cash by lengthening the period during which they can “carry back” current losses to claim a tax refund from previous years when they made a profit.

“This legislation will provide retailers with an important source of capital to finance their operations and keep employees on the payroll,” NRF Vice President and Tax Counsel Rachelle Bernstein said. “Because retail sales have fallen so dramatically over the past year and access to capital has been so limited, retailers are experiencing severe challenges in finding the cash they need to operate their businesses as the economy moves toward recovery.”

“Today's vote comes at a crucial time because most retailers see between a quarter and half of their annual sales during the final quarter of the year as consumers buy gifts for the holidays,” Bernstein said. “If retailers can't find a way finance inventories for the 2009 holiday season, many could be forced to close stores, lay off workers or even go out of business. This will help keep that from happening.”

The House voted 403-12 today to approve Senate amendments to H.R. 3548, the Unemployment Compensation Extension Act of 2009, and sent the measure to President Obama for his signature. The bill extends unemployment insurance benefits but also includes a provision added in the Senate that will expand businesses' ability to “carry back” net operating losses suffered during the current recession in order to claim a refund from taxes paid in previous years.

Existing law allows companies to carry back a loss for up to two years. Economic stimulus legislation enacted in February expanded the period to five years for companies with up to $15 million in annual gross receipts, but larger businesses were still restricted to two years. The provision included in the unemployment bill will expand the five-year period to include all businesses that suffer a loss regardless of size, and will give companies the choice of using the carryback for losses from either 2008 or 2009 rather than just 2008 as provided in the stimulus bill. In the fifth year, the carryback will be limited to 50 percent of a company's taxable income for that year, but any loss not utilized can be “carried forward.” Small companies that took a five-year carryback under the stimulus bill will be able to carry back 2009 losses as well. The proposal is estimated to provide $10.4 billion in tax relief over 10 years.

The provision was added to the bill by Senate Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., but was based on legislation sponsored in the Senate by Baucus and fellow Finance Committee member Senator Olympia Snowe, R-Maine, and in the House by Select Revenue Measures Subcommittee Chairman Richard Neal, D-Mass., and Ranking Member Patrick Tiberi, R-Ohio.


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search