Gulf Opportunity Zone Act of 2005

GULF OPPORTUNITY ZONE ACT OF 2005 -- (Senate - December 16, 2005)

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Mr. LOTT. Mr. President, I would like to thank Chairman GRASSLEY and Senator BAUCUS for their commitment to enacting a long-overdue tax bill that will help get cash back into the pockets of businesses and individuals who are rebuilding their lives and their communities in the wake of hurricane's Katrina, Rita, and Wilma.

By significantly lowering the cost of capital for small, medium, and large businesses alike, the provisions in this legislation will spur business investment on the gulf coast, increase the supply of affordable housing, and put dislocated employees back to work.

Specifically, this legislation includes roughly $8 billion in tax incentives to help the gulf coast. These provisions: 50 percent bonus depreciation for property acquired in the GO Zone; double small business expensing for small businesses in the Zone; increase the amount of tax-exempt bonds Mississippi is allowed to allocate by $4.8 billion; allow for an additional advanced refunding for bonds previously issued by Mississippi and by all local issuers within the GO Zone; increase the amount low-income housing tax credits available to Mississippi; increase the allocation of new markets tax credits available for companies investing in Mississippi businesses and construction; allows for a 5-year net operation loss carryback for businesses in the zone; allows for a 10-year NOL for public utility disaster losses; allows public utility disaster losses to be carried back 5 years; increases reforestation expensing from $10,000 to $20,000 for expenses incurred in the Go Zone for 2006; allows small timber growers a 5 year NOL carryback for losses incurred in the zone; allows increased expensing for demolition and clean up costs through 2007; and makes the employees retention credit available to all employers in the zone.

We have been at this for several months now. My constituents have been patient, and deserve action now. This is a vitally important bill. It is critical that we pass it today and that it is sent to the President for his signature before we adjourn.

This amendment modifies recent legislation introduced by Chairman Grassley by making clear that the business tax incentives in this legislation do not apply to the construction of private or commercial golf courses, country clubs, massage parlors, hot tub facilities or suntan facilities, racetracks or other facilities used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises.

However, it also makes clear that tax incentives do apply to the construction of hotels, restaurants, parking lots, and other attachments to gaming facilities.

I would have much preferred a clean bill, but in the interest of my constituents, I am offering this amended legislation today. I ask unanimous consent that the amendment be adopted.

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