WASHINGTON, DC – Congressman David Schweikert (AZ-06) led colleagues Congressman Brendan Boyle (PA-13), and Congresswoman Lizzie Fletcher (TX-07), in introducing H.R. 3587, legislation that will help amend a widely recognized must-pass ‘technical correction’ in U.S. tax law. This legislative fix will help businesses complete their taxes fairly, regardless of whether their accounting cycle lines up with the tax year, and better use their tax cuts to build up our economy, create more jobs, and invest in their businesses.

Reps. Schweikert, Boyle, and Fletcher released the following statements after introduction: 

“Ensuring that businesses can use the new tax law to grow and support their workers is a major goal of the Tax Cuts and Jobs Act. said Congressman Schweikert. “I am pleased to see this technical correction introduced to help our local businesses and I look forward to seeing how we can continue to keep our tax code up to date.”

“The Net Operating Loss deduction provision in the 2017 tax law has hurt many of the family-owned small businesses in our communities,” said Congressman Boyle. “Small business is the backbone our local economies across the country and employ approximately 2.5 million people in Pennsylvania alone.  Our bill will help them keep their doors open by fixing this error.”

“I came to Washington to solve problems.  When my constituents came to see me about the problem the net operating loss carrybacks were causing for them, I was glad to be able to work across the aisle to work to solve it,” Congresswoman Fletcher said.  “This technical error was the result of a failure of the legislative process.  These technical corrections are important, as is making sure the process for enacting legislation is thorough and fair.”

Background:

In drafting the Tax Cuts and Jobs Act (TCJA), legislation signed into law by President Trump in December of 2017, the tax law’s Net Operating Losses (NOL) provision made changes that subsequently hurt businesses whose tax year does not align with the calendar year. This legislation will help fix this provision and is among the most important changes to the TCJA.

Full text of the legislation can be found here.