The American Hotel & Lodging Association, a leading voice representing all segments of the hotel industry, issued the following statement following the inclusion of key tax provisions critical to the hospitality industry in the US House-passed Budget Reconciliation package. 

AHLA President & CEO Rosanna Maietta: “This is a win for Main Street businesses. We commend lawmakers for including critical tax provisions in the budget reconciliation bill that will prevent a tax increase on American workers and the small businesses that are the backbone of America’s hotel and lodging industry. This is a critical step to stave off the expiration of important tax provisions that will provide our members, the majority of whom are small business owners, the level of certainty they need to effectively operate their businesses. We urge the U.S. Senate to swiftly pass this legislation and send it to President Trump’s desk.”

Additional Background

• AHLA supports the House’s inclusion of permanency for Small Business Deduction (Section 199A) and applauds the increase of the Qualified Business Income deduction. The majority of hotel owners are bona fide small business owners who license the name and standards from nationally recognized hotel brand companies. These are the entrepreneurs who own real estate, acquire capital, employ workers and undertake financial risk. The expiration of the small business deduction would significantly increase their taxes – inhibiting their ability to reinvest back in their employees and businesses.  

• AHLA supports the House’s preservation of the Like-Kind Exchange (Section 1031). Maintaining Internal Revenue Code Section 1031, allowing for like-kind exchanges, as it currently exists, is critical. Any limits, caps or efforts to repeal the current law would significantly reduce new investments and inhibit job creation. This provision allows real estate owners to defer capital gains taxes if the proceeds are employed to purchase another property and, in the process, create new jobs, improve their community and promote economic activity.

• AHLA welcomes the House’s extension of bonus depreciation at 100% for almost 5 years. Bonus depreciation incentivizes hotel industry members to make capital improvements that support jobs across a myriad of sectors, enhance existing properties and draw in new guests with modern updates.