Advocacy - Federal Affairs

Federal Affairs

The Federal Affairs prioritizes legislative issues being debated on the national level. Using member feedback, Committee members, who represent a diverse cross-section of industries and organizations, create a federal advocacy agenda that outlines issues having an effect on the local business community.

The Committee works cooperatively with many organizations including the New England Council and the US Chamber of Commerce.

Top Federal Priorities

Flood Relief

Click here to read a letter sent to Rhode Island's Congressional delegation in support of the Small Business Disaster Assistance Grant Act of 2010.

Unemployment Insurance

Rhode Island's Unemployment Insurance system, if no action is taken, will be faced with a $9 million interest payment due to the Federal Government by September, 2011.

With the support of Congress and the Federal Government, states were granted a waiver on the interest payments due on the borrowing of federal funds for unemployment insurance benefits. Estimates are that approximately 40 states will have borrowed federal dollars to pay for unemployment insurance benefits to their residents by the end of 2010. In Rhode Island’s case, the estimated interest payment due to the federal government will be $9 million.

Click here to read a letter sent to Rhode Island's Congressional Delegation on behalf of Chamber members

Health Care Reform

Congress recently passed historical health care reform.

Click here to see a comprehensive description of the legislation at the Kasier Family Foundation web site.

Race to the Top - Click here to read the Chamber's letter of Support

Net Operating Loss Carryback Act

The Net Operating Loss (NOL) Carryback Act pending in Congress (H-2452 and S-823) would amend the Internal Revenue Code to allow a 5-year carryback of operating losses for any net operating losses for taxable years 2008 and 2009. The bill also includes a provision applicable to life insurance companies with net operating losses. The bill would not allow this carryback provision to apply to TARP recipients.

A Loss Carryback is an accounting technique with which a company retroactively applies net operating losses to a preceding year’s income in order to reduce tax liabilities present in that previous year. Currently, a loss carryback can be applied only to the 3 years preceding the loss. These bills would extend the loss carryback provision to 5 years.

The House bill was introduced on May 15, 2009 by Representative Neal of Massachusetts and was referred to the House Committee on Ways and Means and the Senate bill, sponsored by Senator Olympia Snowe of Maine, was introduced on April 2, 2009 and has been referred to the Senate Finance Committee.

The Chamber Federal Affairs has written a letter in support of this legislation. Click here to read the letter.

UPDATE: Congress recently passed an extension of the NOL. The legislation provides for a five year carryback period (previously two years) for losses incurred in 2008 or 2009, but not both. The provision will allow companies that we're previously limited as to their carrybacks to tap into earnings going as far back as 2003 and thereafter; very profitable years for many companies (e.g., homebuilders, etc.). The election is not available for companies that received TARP assistance. Most companies have already filed their 2008 tax returns and will have the opportunity to file refund claims almost immediately.

Advocacy - Federal Affairs

Knowledge Economy Project
The Greater Providence Chamber of Commerce and the Providence Foundation - together with a consortium of the state’s leading businesses, hospitals, colleges and universities – launched a first-of-its kind effort to invest in the region’s economic growth. The group retained New Economy Strategies based in Washington, D.C. to determine how key employers can move beyond their own institutional strengths and into a far reaching collaborative network that fuels the expansion of a knowledge economy in Providence. The Federal Affairs Committee should closely monitor the activities of this project in order to be prepared to participate, advocate, and/or support when, and if necessary. Click here for more information.

FAA Appropriations Act
Ensure that any proposed changes to the funding formula for FAA will not result in any decrease in FAA funding for New England. Support sustained funding for airport planning and development and noise compatibility planning programs; air navigation facilities and equipment; and FAA operations in New England. This initiative was first heard by the Chamber’s Transportation Committee.

Federal Research Funding
Support increased investment in the knowledge economy by investing in basic and applied research through such organizations as the National Institutes of Health (NIH), the National Science Foundation (NSF), Department of Energy (DOE) and others. During the past five years, funding for these agencies has not kept up with inflation while at the same time increased competition for such grants has occurred. Such an investment creates high skilled, high wage jobs and can also lead to the development of spin-off companies, which contribute to the state’s economy.

Transportation Issues -Rail funding
The Greater Providence Chamber of Commerce recently joined the Business Alliance for Northeast Mobility in sending a letter to FRA Administrator Szabo urging him to assume a leadership role in expediting this environmental process which will make the Northeast Corridor eligible for future rounds of high speed rail funding.

Click here to read the letter