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International Franchise Association Requests that Congress Extend Franchise Tax Incentives

The International Franchise Association (IFA), which represents 1,300 franchise systems and more than 500 companies that supply goods and services to the franchise industry, recently urged lawmakers to extend the expiring tax incentives that "would help franchise businesses" according to Dina Dwyer-Owens, chairwoman of the IFA.  

The IFA is concerned about the U.S. House Small Business Committee not extending the Emergency Economic Stabilization Act of 2008 which provides tax incentives as write-offs and increased depreciation for certain restaurant improvements and renovations such as equipment purchases and construction.  

Dina Dwyer-Owens also asked Congress to extend the American Reinvestment and Recovery Act of 2009 which includes the Work Opportunity Tax Credit.  The Work Opportunity Tax Credit is a credit that she says has "helped franchise businesses hire unemployed veterans or youth who are not in school or already employed".  

The IFA is asking Congress to extend both of these tax incentives that having been helping franchise owners and those interested in buying a franchise for the past two years.  The IFA feels that taking the tax incentives away just as the economy has began to recover could further damage the economy.  This believe is similar to the extension that is being requested for the first time homebuyer credit for the real estate market.  Although different they are very much alike in a way which is that they are trying to get extensions on both until the economy returns to somewhat of a normal status.