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Committee on Taxation Proposes Initiatives to Increase Liquidity and Promote Job Growth

FLORHAM PARK, N.J., Jan. 13 /PRNewswire/ -- The Committee on Taxation (COT) of Financial Executives International (FEI) today issued a letter to Congress encouraging the inclusion of important tax relief for businesses in the economic stimulus legislation package that Congress and President-Elect Obama's team are developing. In the letter addressed to House and Senate leadership, COT outlined ten recommendations to further stimulate the economy, which include the extension of a strengthened Research and Development (R&D) tax credit, a temporary extension of the carryback period for net operating losses to five years, and a temporary change in the treatment of capital losses.

"COT commends the efforts of the Congress, the Administration, and the Federal Reserve to date and strongly supports further action to increase access to capital, increase liquidity, and promote job growth during this time of economic uncertainty," said Ron Dickel, Chairman, FEI Committee on Taxation.

Recommendations proposed in the letter include the following:

• Extend bonus depreciation and increase Section 179 expensing provisions
• Temporarily allow taxpayers to receive a refund of AMT prepayments in lieu of bonus depreciation
• Temporarily extend the carryback period for net operating losses to five years and waive the 90 percent limitation for Alternative Minimum Tax (AMT)
• Extend the general business credit ("GBC") carryback period from one year to five years and allow carrybacks and carryforwards to offset 100 percent of a taxpayer's regular tax and AMT
• Temporary change in the treatment of capital losses
• Multi-year extension of a strengthened Research and Development (R&D) tax credit
• Repeal the 3 percent withholding requirement for government payments
• Allow foreign subsidiaries of U.S. companies to lend or otherwise send money to the U.S. without adverse tax implications
• Temporary relief from pension funding requirements
• Expand tax credits for new hires or reverse layoffs

For a copy of the letter, please contact Nicole Madison for FEI at Nicole.madison@fd.com.

About FEI

Financial Executives International is the leading advocate for the views of corporate financial management. Its 15,000 members hold policy-making positions as chief financial officers, treasurers and controllers. FEI enhances member professional development through peer networking, career management services, conferences, teleconferences and publications. Members participate in the activities of 84 chapters, 73 in the U.S. and 11 in Canada. Visit www.financialexecutives.org for more information.