WASHINGTON Dina Dwyer-Owens, chairwoman of the International Franchise Association, urged federal lawmakers Wednesday to extend expiring tax incentives that she said would help franchise businesses.
In testimony before the U.S. House Small Business Committee, Dwyer-Owens asked for the extension of provisions in the Emergency Economic Stabilization Act of 2008 that provided such tax incentives as write-offs and increased depreciation for certain restaurant improvements, like construction or equipment purchases, in 2008 and 2009.
“These provisions must be extended beyond 2009 for the benefits of lower real estate costs to coincide with construction spending in the franchise industry,” said Dwyer-Owens, chairwoman and chief executive of The Dwyer Group in Waco, Texas. “Extending these provisions will entice franchise business owners to reinvest in their facilities, which creates a tremendous spill-over effect on other industries.”
The Bureau of Labor and Statistics estimates that every $1 spent on construction generates another $2.39 in economic activity.
Dwyer-Owens also urged Congress to extend the American Reinvestment and Recovery Act of 2009, which includes the Work Opportunity Tax Credit. That credit, she said, has helped franchise businesses hire unemployed veterans or youth who are not in school or already employed.
“This tax credit should be extended until our national unemployment rate returns to pre-recession levels,” she said.
Dwyer-Owens also urged Congress to address the inheritance tax, to extend tax credits for hiring qualified military veterans and to increase access to credit for franchise businesses.
The IFA represents 1,300 franchise systems and more than 500 companies that supply goods and services to the franchise industry.
Contact Ron Ruggless at [email protected].
