WASHINGTON, DC—It’s a done deal. The U.S. House of Representatives and Senate gave final approval to pass Congress’ tax overhaul. The American Hotel & Lodging Association (AHLA) and Asian American Hotel Owners Association (AAHOA) applauded the move.
The vote in the House of Representatives was 224-201 and came hours after the Senate’s early morning passage along party lines; it is the first major overhaul of the nation’s tax laws since 1986.
“We applaud Congressional leadership and all members of the U.S. House who voted for final passage of this tax reform legislation, which will help American businesses and strengthen our overall economy,” said Craig Kalkut, VP of government affairs, AHLA. “These tax cuts are key for the hotel industry, allowing it to continue to grow, create more jobs and strengthen local economies… Many jobs in local communities are also dependent on a thriving hotel and tourism sector.”
Chip Rogers, president and CEO, AAHOA, also weighed in, stating, “For the past three decades, hoteliers have endured the crushing burden of perpetually increasing tax obligations that stifled growth and job creation. This substantial reformation of the tax code presents hoteliers with the opportunity to reinvest in their properties, increase employee wages, develop new businesses and create new jobs.”
Rogers added, “AAHOA members worked tirelessly to educate their legislators about how reforming the tax code will create jobs and economic growth in the hospitality industry. Through thousands of meetings, letters, conferences, Op-Eds, phone calls and emails, AAHOA members made their voices heard and played a part in getting tax reform passed. This is what democracy looks like. Hoteliers are eager to put this tax cut to work and ignite local economies across the country. The final bill contains many of the provisions AAHOA members requested, and we are optimistic about opportunities for economic growth. This tax cut is a ringing endorsement of our free enterprise system that gives small business owners and entrepreneurs the chance to save and reinvest more of their own money to keep America’s economic engine powering along.”
Among the many provisions in the final bill, some of the highlights for businesses include the following:
- A 20% deduction for pass through income, which encourages hoteliers to reinvest capital to raise wages, hire new employees, and expand their businesses.
- Like-kind exchanges for real estate are preserved, which allows hoteliers critical capital access to invest in new properties, create jobs and develop businesses.
- Full and immediate expensing of business assets is allowed, which enables hoteliers to modernize their properties.