This week ICSC led an effort to show the support of the commercial real estate industry for S. 823/H.R. 2452, the Net Operating Loss (NOL) Carryback Act.
The NOL Carryback Act would provide American companies struggling in the current economy with the ability to access a quick infusion of cash by writing off losses from 2008 or 2009 against gains from the last five years, rather than carrying them forward for the next 20 years. ICSC supports the NOL Carryback Act and is advocating removal of the program exemption for companies that have accepted funds from the Troubled Asset Relief Program (TARP).
The act will allow businesses to stabilize operations and stay current with mortgage payments, thereby protecting banks from absorbing another round of write-downs associated with non-performing real estate loans. While the losses being experienced today will be offset against future tax liabilities, the real estate industry needs liquidity to make payroll, maintain the commercial properties in our communities, and stave off foreclosures and bankruptcies.