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U.S. Travel Supports Oil Spill Tax Break for IndustryJune 15, 2010 By: George Dooley
The U.S. Travel Association today expressed its strong support for legislation introduced by Sen. Bill Nelson (D-FL) that would allow tourism-related businesses to carry back losses due to the Deepwater Horizon oil spill for an additional three taxable years.
Nelson’s proposal, which would allow eligible taxpayers to carry back the net operating losses for five years instead of the two years allowed under current law, is being offered as part of the tax extenders bill (H.R. 4213, American Jobs and Closing Tax Loopholes Act of 2010) currently under consideration by the Senate.
“Providing additional years to carry back losses due to the oil spill is an appropriate way to show support for one of the leading industries in the region,” said Roger Dow, president and CEO of the U.S. Travel Association, who sent a letter of support for the amendment to Nelson this week. “While the full economic impact of the spill on the region’s communities remains unknown, the early effects are already clear. The perception of the spill’s impact has been as damaging as the actual effects from the oil.”
Dow emphasized the vitality of the travel industry in every community throughout the country is demonstrably linked to ensuring a strong economy overall, and recognized the federal government’s efforts to help ensure the sustainability of the thousands of small travel and tourism-related businesses that operate along the Gulf Coast.
According to data from the U.S. Travel Association, travel and tourism generates $94 billion in expenditures in the Gulf region states of Alabama, Florida, Louisiana and Mississippi and is responsible for the direct employment of more than 1 million residents.