House Members seek tax exemption for CERTS funds

Washington – The motorcoach industry took a major step forward this week when four U.S. House Members led a bipartisan effort to exempt grants under the Coronavirus Economic Relief for Transportation Services Act from federal taxation.

House Members

Reps. Jimmy Panetta, D-Calif., Darin LaHood, R-Ill., Albio Sires, D-N.J., and John Rose, R-Tenn., have taken the lead in seeking bipartisan support to make the CERTS Act grants exempt from being reportable income, avoiding a possible tax liability. 

This week, the legislators will be circulating a letter addressed to House Speaker Nancy Pelosi and House Minority Leader Kevin McCarty. They will ask fellow House Members to join the effort by signing the letter by Thursday, Oct. 21.

Letter campaign

As a matter of law, all federal grants are considered taxable income.

When the Internal Revenue Service announced that Paycheck Protection Program (PPP) forgiven funds would be considered a grant and therefore taxable, Congress expressed outrage that intended relief for small businesses would be a tax burden. 

Subsequently, the Consolidated Appropriations Act of 2021, which passed the House and Senate and was signed by President Donald Trump on Dec. 27, exempted the forgiven PPP grants from taxation.

Modeled after the PPP, subsequent programs for restaurants and shuttered venues also are exempt from federal taxation.

Once there is final clearance, United Motorcoach Association Members will be asked to send a letter through their automated system directly to their House Member asking for support.


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