IPC Tax Relief Goal signed into law.
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Press Release Summary:
Worker, Homeownership, and Business Assistance Act of 2009, HR 3548, was signed into law, allowing net operating loss (NOL) relief for electronics companies of all sizes. Expanding NOL refund eligibility to medium- and large-sized companies, relief can be used by a company to recover past tax payments or reduce future tax payments. Eligible companies can receive tax refunds by applying NOLs to taxes during previous 5 yr and can carry loss forward 20 yr to future income tax payments.
Original Press Release:
Persistent IPC Lobbying Results in Expanded Tax Relief
BANNOCKBURN, Ill., USA, November 6, 2009 - Net operating loss (NOL) relief, an IPC 2009 legislative goal, became a reality for electronics companies when the Worker, Homeownership, and Business Assistance Act of 2009 (H.R. 3548) was signed into law today. The NOL relief provision in the bill expands the NOL refund eligibility to medium- and large-sized companies that were previously excluded from NOL relief, allowing businesses of all sizes to offset 2008 and 2009 losses against previous or future taxable income.
"All electronics companies can now file for much needed tax refunds if they incurred an NOL in 2008 or are incurring a loss in 2009," said Nilesh Naik, CEO of OneSource Group and IPC Board of Directors Chairman. "The tax refunds can be used to pay for operations, make needed investments, and in some cases, stay open for business."
This past spring, IPC members who participated in IPC's 2009 Capitol Hill Day advocated NOL relief with their elected officials. Additionally, IPC joined forces with the NOL Coalition to persistently pressure Congress to enact NOL legislation that would assist businesses affected by the tough economic times.
"IPC members' Capitol Hill Day lobbying efforts convinced their legislators to support NOL relief either by cosponsoring a bill or pledging to support the NOL provision once it came up for a vote," added Naik.
The NOL relief can be used by a company to recover past tax payments or reduce future tax payments. An NOL is the amount by which deductions exceed gross taxable income, resulting in a negative taxable income. Eligible companies can receive tax refunds by applying NOLs to taxes during the previous five years. Companies also have the option of carrying the loss forward twenty years to future income tax payments, thereby reducing payments they will need to make in future periods.
For more information about IPC's NOL relief lobbying efforts, visit ipc.org/net-operating-loss or contact Ron Chamrin, IPC manager of government relations, at +1 703-522-0225 or RonChamrin@ipc.org.
About IPC
IPC (www.IPC.org) is a global trade association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 2,700 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $1.7 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Garden Grove, Calif.; Stockholm, Sweden; Moscow, Russia; and Shanghai and Shenzhen, China.
