The National Association of Manufacturers pushed hard for passage of five-year Net Operating Loss (NOL) tax relief this year as critical to promoting investment and aiding the recovery. The NAM certainly counts President Obama’s signing of H.R. 3545, the unemployment insurance bill with the NOL tax relief, as a big help to many manufacturers.
And retail too! Ian Swanson of The Hill reports that angle today in “Black Friday boom? Retail sales boosted by carry-back legislation“:
“We think it will have a benefit,” said Craig Sherman, vice president of government affairs for the National Retail Federation (NRF), which lobbied vigorously for the measure.
Sherman said the provision will help retailers by providing money to pay for adding inventory or to hire more workers to meet the masses of December shoppers. Without the change in tax law, firms could only carry back losses to the last two tax years. Given the recession, that didn’t help many retailers who had seen minimal or no profits over the past two years.
Even if the money isn’t yet technically available, Sherman said retailers are using the incoming funds as collateral to get loans from their banks.
The NAM’s webpage with background and documents on the new NOL law is here.
The National Retail Federation previewed Black Friday sales earlier this week with a survey and news release, “Black Friday Bargains to Attract Up to 134 Million Shoppers This Year.”
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