The new law also extends and expands tax benefits for businesses incurring net operating losses during the recession. Businesses of all sizes experiencing such losses in 2008 and/or 2009 are able to claim refunds on business taxes paid up to five years earlier (expanded from two years). In the original legislation passed in February 2009, the five-year expansion applied only to 2008 and to businesses with annual gross revenues under $15 million.
In addition, the Senate voted in December to extend two key Recovery provisions that had expired. One involved a maximum federal guarantee of 90 percent of the amount of a Small Business Administration loan (vs. 75 percent, before the Recovery Act). The other was a waiver of fees the SBA normally charges to banks. Both provisions have been extended through February 2010.
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