Source: Hotel News Now
March 27, 2020
By Danielle Hess
REPORT FROM THE U.S.—The U.S. House of Representatives is considering an economic stimulus bill that it could pass Friday to aid businesses and individuals who have been affected by the COVID-19 outbreak. Hotel executives have identified parts of the bill that could help the hotel industry during these trying times, but more help is needed, sources said.
According to The New York Times, industry organizations have been lobbying for a provision called “Technical Amendments Regarding Qualified Improvement Property,” which would allow hoteliers who spent money on renovations in the last two years to accelerate how they write off those costs to get an immediate tax refund, which could be used to cover bills amid the COVID-19 crisis.
Cecil Staton, president and CEO of the Asian American Hotel Owners Association, said his organization is grateful this tax change has been made.
“This was a drafting error that has lingered since the passage of the Tax Cuts and Jobs Act and has remained a challenge for hoteliers,” he said via email. “It was long considered a political negotiating point during many unrelated topics, and we are relieved that the political nonsense surrounding this important provision has ended. We strongly support the inclusion of this technical correction on qualified improvement property.”