Asks for action on federal bill allowing commercial landlords to earn tax deductions for waiving rent payments from COVID-battered businesses
Senator Joe Pennacchio’s resolution seeking Congress’ help for countless businesses struggling to survive the coronavirus pandemic was endorsed today by the Senate.
Senator Pennacchio’s resolution urging Congress to pass a federal measure to help commercial property owners and employers survive the economic crisis brought on by the coronavirus earned Senate approval. (Pixabay)
The resolution (SR-69) urges federal action to assist commercial landlords and tenants that have been severely damaged by extended closings under COVID-19 emergency orders.
“Businesses that we’re not allowed to open have been financially devastated, and others have seen their revenue plummet because people have been living in isolation,” said Pennacchio. “I am urging Congress to vote to provide assistance to both companies on the brink of bankruptcy and landlords facing foreclosure.”
The resolution asks Congress to allow commercial property owner who voluntarily offer rental forgiveness to business tenants to claim a portion of the lost rent as a tax deduction. Landlords who forgive rent during the crisis would be eligible to claim a portion of the discount, up to $15,000 as a deduction against their federal income tax under Pennacchio’s initiative.
“When companies can’t pay their bills, employees lose their jobs, lease payments are missed, and landlords can’t make their mortgage payments,” Senator Pennacchio said.
“We want to prevent a domino effect that could do irreparable damage to local economies. This resolution, as like my bill (S-2460) in the New Jersey legislature, provides a safety net to prevent businesses from closing forever and landlords from losing their properties.”
Pennacchio’s state legislation, S-2460, would allow a New Jersey income tax credit of up to $5,000 to landlords who voluntarily forgive any or all of a business rent up to $15,000. The federal resolution calls for a tax deduction.
“Our recovery from this fiscal calamity requires unconventional solutions,” said Pennacchio. “Without creating another layer of bureaucracy, this plan can deliver desperately needed relief. Real estate sits vacant and abandoned when businesses lock their doors. It has a devastating impact on neighborhoods and entire regions.”
Pennacchio noted the net dollar benefits for state tax credits and a federal deduction for filers in the 30 percent federal tax bracket are very similar.