GO Zone extension bill makes it through the House
May 22, 2008
The GO Zone extension bill that relates to the Gulf Opportunity or GO Zone Act passed the House on Wednesday (5/21/08). This bill will get rid of the deadline to start construction and qualify for the GO Zone bonus depreciation. The Senate and House must now come to an agreement on the bill. If the extension is approved it will create an additional $1.1 billion in tax incentives for GO Zone rebuilding efforts in the wake of Hurricane Katrina.
By a vote of 260 to 160 the House passed H.R. 6049, the Renewable Energy and Job Creation Act of 2008. The bill also would allow grant recipients who deducted their loss after Hurricanes Katrina and Rita to amend previous tax returns so grants will not be considered taxable income.
“These common-sense provisions will fix two unfair roadblocks for many people on the Gulf Coast trying to rebound from hurricanes Katrina and Rita,” said Taylor. “I want to thank Chairman (Charles) Rangel for allowing these recovery efforts to be included in this legislation, and House leadership for continuing to support recovery from the 2005 hurricanes.”
The Gulf Opportunity Zone Act of 2005 (GO Zone Act) allows a bonus depreciation tax deduction for property placed in service before Dec. 31, 2010 in the five Mississippi counties - Hancock, Harrison, Jackson, Pearl River and Stone - and the seven Louisiana parishes that incurred the most destruction from the hurricanes. This legislation removes a legal technicality that work had to begin by the end of 2007 for the deduction.
The language is very similar to the New York Liberty Zone Act, which provided tax deductions for affected businesses and employees during the September 11th, 2001 terrorist attacks.
The Senate’s version of the bill, the Alternative Minimum Tax and Extenders Tax Relief Act of 2008, has been referred to the Senate Committee on Finance. The Senate had previously approved both recovery measures as part of its version of the Foreclosure Prevention Act of 2008, but the Senate and House still must reach an agreement on the bill.
Jeremy Quinn
5/22/08
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