Please see below letter we are sending with 28 associations around California signing. We expect to have a couple more before we send.
Now I need your help. We want to send a letter with individual businesses. My request the other day did not get much response. Can we add your business to a similar letter. I think this is pretty noncontroversial and we need to show the legislators individual businesses agree with these associations.
To sign all you need to do is tell me it is okay and send me your address. We need to complete this by Monday.
Small Business California
2311 Taraval Street
San Francisco, CA 94116
July 17, 2012
The Honorable Christine Kehoe
Chair, Senate Committee on Appropriations
California State Capitol
Sacramento, CA 95814
RE: AB 2408 (Skinner) – OPPOSE - Elimination of Net Operating Loss Carry Back
Dear Senator Kehoe:
The associations listed below, who represent the 3.2 million small businesses in this state are Strongly Opposed to AB 2408 that would entirely eliminate small businesses’ ability to carry back their Net Operating Loss, resulting in significant impacts on small businesses and start-up companies.
Small Business is the engine that drives California's economy. Our state’s small businesses create most of the net new jobs at significant financial and personal risk. Many small businesses, as well as new businesses, nearly all of which are small by definition, must endure several years of losses before profitability can be achieved. This is particularly true in a down economy. Therefore, AB 2408 comes at an especially bad time for small businesses that are trying to get through these difficult times.
Although this proposal has been characterized as a measure that will close a loophole for large corporations, in fact, it will impact 6-7 small businesses for every large business affected. This would be particularly harmful to small businesses in cyclical industries, small businesses that have been affected by the downturn in the economy and small businesses who want to invest in their company to create more jobs for the people in California.
AB 2408 would suspend the ability of a small business to carry back losses and prevent them from growing or investing in their business.
Even without AB 2408, federal tax law and the laws of most other states already treat net operating loss carry backs significantly more favorably than existing California law. We believe that suspending the NOL is bad for the economy in California, but is especially harmful to small companies.
Therefore, the Associations listed are in Strong Opposition to AB 2408 and respectfully request you vote NO on this measure.
Thank you for your consideration and we look forward to answering any questions that you may have. Please contact Scott Hauge, President of Small Business California at 415.680.2109 or Lori Kammerer, Kammerer & Company, SB Cal’s Governmental Relations Advocate at 916.441.5674.
SMALL BUSINESS ASSOCIATIONS IN STRONG OPPOSITION TO AB 2408:
Associated Builders and Contractors of California
Building Owners and Managers Association of San Francisco
California Association of Competitive Telecommunications Companies (CALTEL)
California Association for Micro Enterprise Opportunity (CAMEO)
California Chapter of the American Contractors’ Association
California Employers Association
California Fence Contractors’ Association
California Metals Association
Engineering Contractors' Association
Golden Gate Restaurant Association
Insurance Brokers & Agents of the West
Los Angeles National Association of Women Business Owners
Marin Builders’ Association
Napa Chamber of Commerce
Oakland Metropolitan Chamber of Commerce
Plumbing Heating and Cooling Contractors of California
San Diego Regional Chamber of Commerce
San Francisco Builders Exchange
San Francisco Chamber of Commerce
San Francisco Council of District Merchants Associations
San Francisco Hispanic Chamber of Commerce
San Francisco National Association of Women Business Owners
San Francisco Small Business Advocates
San Francisco Small Business Network
Small Business California
Small Business Majority
Small Manufacturers Association of California