WASHINGTON—The American Hotel & Lodging Association (AHLA) issued the following statement from its president and chief executive officer, Rosanna Maietta, following the inclusion of tax provisions critical to the hospitality industry in the U.S. Senate-passed Budget Reconciliation package.
“AHLA applauds the Senate’s swift action today to prevent major tax increases on both hotel employees and businesses. The tax provisions included in the Senate bill provide small business hotel owners with the level of certainty they need to effectively operate amidst tremendous uncertainty resulting from years of inflation, trade impacts, and a softening of demand within the broader travel sector. We commend Majority Leader Thune, Senator Crapo, and other Senate champions for securing passage. We urge Congress to swiftly get this package to the President’s desk for his signature to help put businesses back on a pro-growth footing.”
Additional Background
- AHLA supports the Senate’s inclusion of permanency for Small Business Deduction (Section 199A). The majority of hotel owners are small business owners who license the name and standards from nationally recognized hotel brand companies. These are the entrepreneurs who own real estate, acquire capital, employ workers, and undertake 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 commends the Senate for making both 100 percent bonus depreciation and expanded business interest deductibility permanent. Bonus depreciation and interest deductibility incentivize 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.
- AHLA supports the Senate’s preservation of the Like-Kind Exchange (Section 1031). Maintaining Internal Revenue Code Section 1031, allowing for like-kind exchanges, as it currently exists, is critical. Any limits, caps, or efforts to repeal the current law would significantly reduce new investments and inhibit 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.
