WASHINGTON The American Hotel & Lodging Association (AHLA), the leading voice representing all segments of the hotel industry, today issued the following statement from AHLA President & CEO Rosanna Maietta The U.S. House passed a budget reconciliation package that included key tax provisions important to the hospitality sector:
It’s a big win for Main Street. We thank lawmakers for including important tax provisions that will prevent an increase in taxes on American workers and small businesses, the backbone of America’s hotel and lodging industries. This is an important step to prevent the expiration date of key tax provisions. Our members, who are primarily small business owners will have the certainty they need to run their businesses. We urge the U.S. Senate, which is a majority of small business owners, to quickly pass this legislation and deliver it to President Trump.
Background Information
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AHLA is in favor of permanent inclusion of Small Business Deduction Section 199A and the increased Qualified Business Income Deduction.
Most hotel owners are small businesses who have licensed the brand name and standards of national hotel brands. They are entrepreneurs who have real estate and capital, hire employees, and assume financial risk. The expiration of the small business deduction would significantly increase their taxes – inhibiting their ability to reinvest back in their employees and businesses. - AHLA supports House efforts to preserve the Like-Kind Exchange Section 1031). It is important to maintain the Internal Revenue Code Section 1001, which allows for like-kind trades. Limitations, caps or attempts to repeal current law will significantly reduce new investment and hinder job creation. This provision allows real estate owners to defer capital gains taxes if the proceeds are employed to purchase another property and, in the process, create new jobs, improve their community and promote economic activity.
- AHLA applauds the House for extending bonus depreciation to 100% for almost five years. Bonus depreciation incentivizes hotel industry members to make capital improvements that support jobs across a myriad of sectors, enhance existing properties and draw in new guests with modern updates.
About the American Hotel & Lodging Association (AHLA)
The American Hotel & Lodging Association (AHLA) is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide – including iconic global brands, 80% of all franchised hotels, and the 16 largest hotel companies in the U.S. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and workforce development programs to move the industry forward. Find out more by visiting www.ahla.com.
