NRA, IFA advocate for tax incentivesNRA, IFA advocate for tax incentives

Ron Ruggless

WASHINGTON National Restaurant Association and International Franchise Association urged federal lawmakers this month to extend expiring tax incentives they claim would help small and franchised businesses. —Members of the

John Frenz, an NRA member and chief executive of Frenz & Schmidtknecht, which owns and operates two Montana Mike’s Steakhouse restaurants in Vincennes, Ind., and Danville, Ill., testified before Congress on the importance of tax incentives. He asked that provisions set to expire this year are extended into next year so that operators can benefit from such incentives as a 15-year depreciation schedule for leasehold improvements, restaurant improvements and new construction; an expanded net operating loss carry-back provision, which helps businesses offset against past profits; and an increase in the business meal deduction from 50 percent to 80 percent. —Members of the

“In today’s tough economic environment, it is vitally important that all small businesses are given every opportunity to succeed,” Frenz said, according to a statement released by the Washington-based National Restaurant Association. —Members of the

Dina Dwyer-Owens, chairwoman of the International Franchise Association, also asked for key provisions of the Emergency Economic Stabilization Act of 2008 to remain in place. That act also granted tax incentives for certain restaurant improvements, such as construction or equipment purchases completed in 2008 and 2009. —Members of the

“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 spillover effect on other industries.” —Members of the

The Bureau of Labor and Statistics estimates that every $1 spent on construction generates $2.39 in economic activity. —Members of the

Dwyer-Owens 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 and youths. —Members of the

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. —Members of the

The IFA represents 1,300 franchise systems and more than 500 companies that supply goods and services to the franchise industry. —Members of the