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Skriven 2006-01-12 23:33:14 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (060112) for Thu, 2006 Jan 12
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Fact Sheet: A Commitment to Continued Recovery and Rebuilding in the Gulf
Coast
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For Immediate Release
Office of the Press Secretary
January 12, 2006

Fact Sheet: A Commitment to Continued Recovery and Rebuilding in the Gulf
Coast



President Bush is committed to helping residents of the Gulf Coast rebuild
their lives in the wake of Hurricane Katrina. On December 21, 2005, the
President signed into law the Gulf Opportunity (GO) Zone Act of 2005, which
provided tax relief for businesses affected by Hurricane Katrina. Through
this bipartisan legislation, along with other legislation and disaster
assistance, the Administration is working to boost the small business
sector and revive the spirit of entrepreneurship in Louisiana, Mississippi,
and Alabama.

As businesses rebuild or purchase new equipment, the GO Zone Act will help
in many important ways:
  þ Small Business Expensing. Under current law, small businesses are
    permitted to expense, rather than depreciate, up to $100,000 of
    investments in equipment. The GO Zone Act increases to $200,000 the
    amount that eligible small businesses can expense.
  þ Bonus Depreciation. Businesses of all sizes are generally required to
    depreciate their investments over time, recovering the cost of those
    investments through annual depreciation deductions. The GO Zone Act
    provides a significant acceleration of this cost recovery by allowing
    businesses to claim a depreciation deduction in the first year the
    property is used equal to 50 percent of its cost. This bonus
    depreciation is available to companies of all sizes for their
    investments in equipment and depreciable real property.
  þ Expensing for Demolition and Cleanup Expenses. Under existing law, the
    cost of demolition generally is added to the business owner's basis in
    the underlying land and cannot be recovered until the property is sold.
    The GO Zone Act provides relief by allowing businesses to expense 50
    percent of their demolition and cleanup expenses.
  þ Net Operating Loss Carrybacks. Businesses incurring uninsured losses
    generally can carry those losses back two years to obtain a refund of
    taxes previously paid. The GO Zone Act extends this to a five-year
    carryback rule for eligible losses.

As businesses hire employees, businesses and workers are receiving the tax
relief they need:
  þ Work Opportunity Tax Credit. Under current law, a work-opportunity tax
    credit is available for employers hiring individuals from eligible
    groups. The Katrina Emergency Tax Relief Act, which the President
    signed into law in September, expanded the categories of groups
    eligible for the credit to include people affected by Hurricane Katrina
    and relaxed the requirements for employers claiming the credit.
  þ Employer-Provided Housing and Employer Tax Credit. The GO Zone Act
    excludes from the calculation of an employee's income for tax purposes
    up to $600 per month for housing provided by employers in the region
    affected by Hurricane Katrina. These employers are also entitled to a
    significant tax credit for providing such housing.

More information about the various tax provisions is available at
http://www.irs.govor at 1-866-562-5227.

If businesses have suffered substantial economic injury or physical damage,
they may be eligible for financial assistance from the U.S. Small Business
Administration (SBA). Thus far, SBA has approved more than 6,000 physical
disaster and economic injury loans totaling over $460 million. SBA has also
partnered with local banks to initiate a one-year Gulf Opportunity Pilot
Loan Program (GO Loan) to expedite small business financing.
  þ Applying for a Physical Disaster or Economic Injury Loan. Businesses
    should apply directly to SBA for these loans. SBA can provide up to
    $1.5 million in loans for each business. The interest rate that SBA
    charges on a disaster loan is determined by the business' ability to
    obtain credit elsewhere. More information is available at
    http://www.sba.gov/disaster or at 1-800-659-2955.
  þ Applying for a GO Loan. GO Loans are delivered through banks and
    lending institutions doing business in the Gulf Coast, with SBA
    guaranteeing a portion of the loan. More information is available at
    http://www.sba.gov/financing/goloans.
  þ Disaster Assistance Information Coordination. Ninety-two Disaster
    Recovery Centers (DRCs) are currently open in the Gulf Coast. DRCs
    areÿresource centers that provide information about different types of
    state and Federal disaster assistance, including SBA loans for
    homeowners, renters, and business owners. Additional information is
    available at 1-800-621-FEMA.

If businesses are looking to participate in Gulf Coast reconstruction
contracting with the Federal Government, they should contact the Hurricane
Contracting Information Center (HCIC). Launched in October 2005, the HCIC
has provided contracting information through over 150,000 website visits
and 7,000 calls. More information is available at
http://www.rebuildingthegulfcoast.govor at 1-888-487-2362.

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