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The National Grocers Association (NGA) said it supports the U.S. House of Representatives' passage of two tax extenders bills today: H.R. 4453, the Permanent S-Corporation Built-in Gains Recognition Period Act, and H.R. 4457, America's Small Business Tax Relief Act of 2014.
"Today's passage of these tax provisions will provide independent grocers with much needed tax certainty and predictability,” said Peter J. Larkin, president and CEO of Arlington, Va.-based NGA. “These tax extenders are incredibly important to our industry, as each will provide independent grocers and small business owners the opportunity to invest in their stores, and have a positive economic impact on their local communities. In addition to the passage of these bills, our members are united in their calls to renew critical, pro-growth tax extenders that allow the independent grocery industry to continue to grow and contribute to the U.S. economy.”
H.R. 4453, introduced by Reps. Dave Reichert (R-Wash.) and Ron Kind (D-Wis., will allow S-Corps to access their own capital after only five years, as opposed to current law, which places the time period at 10 years. H.R. 4457, introduced by Rep. Pat Tiberi (R-Ohio), would make permanent Section 179 expensing, a tax credit that allows for the increased $500,000 expensing allowance for depreciable business property.
Earlier today, NGA sent a letter to the House leadership, urging passage of the bills, as well as passage of a larger package of tax extenders. According to the letter: "While NGA supports the two bills referenced above, it is also important to note our continued support for a larger package of pro-growth tax extenders, including the Work Opportunity Tax Credit (WOTC), Bonus Depreciation, the New Markets Tax Credit (NMTC) and enhanced charitable deductions for contributions of food. In the current economic environment, these pro-growth tax measures continue to be critical to independent grocers."
The NGA is the national trade association representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry.