SEMA Joins Forces With Industry to Urge Additional Measures
SEMA and 113 other trade associations sent a letter urging President Donald Trump,House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell to helpbusinesses survive the COVID-19 crisis by employing an economic response matchingthe scale now being taken to end the pandemic. To minimize the number of businessesclosed and workers unemployed, the response needs to be coordinated, massiveand focused on ensuring that all businesses have the resources necessary toride out the pandemic.
This letter notes that the response should include—butnot be limited to—the following areas:
Immediately provide readily accessible, unsecured credit to businesses ofall sizes to ensure they have the cash to pay their workers, rent and othercosts during this crisis. While Congress, Treasury and the Federal Reservehave recently announced policies to increase the availability of credit tosome businesses, these policies need to be expanded to make certain they arecomprehensive and that credit is readily available to all operating businessesin the short term.
Suspend the filing of business returns and the payment of all business taxesto the federal government for the duration of the pandemic. These suspendedtaxes should include taxes owed for the 2019 Tax Year, estimated payments for2020 and all payroll tax obligations. The suspension should be broad and applyto all businesses. When the pandemic is over, the repayment of any deferredtaxes should be spread out over time.
Amend the Tax Code to, among other items, restore the ability of businessesto carryback any net operating losses against previous year tax payments, suspendthe application of the Section 163(j) limitation on interest expense deductionsfor tax year 2020 to avoid penalizing businesses for borrowing during thiscrisis and suspend the Section 461(l) loss limitation on pass-through businessesto allow owners to fully deduct any losses they incur this year.
Congress has passed two short-term bills to increase coronavirus testing,provide worker benefits for sick and family leave and offer low-interest small-businessdisaster loans. Lawmakers are now working on additional packages to addressthe pandemic. The bills will likely include direct cash payments to individuals,financial aid to business sectors suffering significant impact and potentiallyaddition financial stimulus. SEMA will continue to work with other industryorganizations in a coordinated effort to help protect businesses and restorethe economy.