Bill Overview
Title: CERTS Tax Exemption Act
Description: This bill excludes from income taxation grants to assist providers of transportation services affected by COVID-19.
Sponsors: Rep. Panetta, Jimmy [D-CA-20]
Target Audience
Population: People employed by US-based transportation service providers affected by COVID-19
Estimated Size: 500000
- Transportation service providers were significantly impacted by COVID-19 due to lockdowns and reduced travel demand.
- The Coronavirus Economic Relief for Transportation Services (CERTS) Act provided grants to bus, motorcoach, passenger vessel, and pilotage companies.
- Income taxation exemption on these grants would benefit those companies that received them.
- Main affected entities are in the transportation industry across different sectors, including buses, motorcoaches, and passenger vessels.
- The transportation services industry employs millions of individuals worldwide, meaning that company-level financial relief could indirectly impact employees as well.
Reasoning
- Transportation companies experienced financial strains during and post-COVID-19 due to reduced ridership, which affected their business revenues.
- The CERTS Tax Exemption Act would provide tax relief by ensuring the grants obtained from the initial CERTS Act are not taxed, potentially improving financial stability and investment capacity for those companies.
- A range of perspectives is needed, from large operators to small family-owned businesses, as well as employees who might see indirect effects such as job security and benefits.
- Given the budget cap for the CERTS Tax Exemption Act, its immediate impact is most palpable for businesses that already secured CERTS grants, limiting the commonness factor of the policy directly impacting simulated subjects.
- Ultimately, the true measure of impact lies not only in company savings but in how they choose to reinvest or maintain these savings, affecting employees indirectly.
Simulated Interviews
Owner of a Charter Bus Company (New York, NY)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The tax exemption would definitely help, as it allows us to retain more capital in the business.
- We've been struggling to get back to pre-pandemic levels of business.
- Any financial relief helps stabilize the workforce and maintain our fleet.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Bus Driver (Los Angeles, CA)
Age: 37 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- If the company saves money on taxes, perhaps they would be able to offer better job security or even raises.
- We’ve heard that the company needs all the financial help it can get to avoid more layoffs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Owner of a Passenger Vessel Company (Miami, FL)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- Since we didn’t receive any grant money, the tax exemption doesn’t impact us directly.
- However, it could indirectly benefit the industry as a whole if larger players can stabilize.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
School Bus Operator (Dallas, TX)
Age: 28 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- Tax savings could trickle down into maintaining jobs or maybe improving the fleet.
- I’m hopeful that less tax burden on the company can contribute to better job stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
CEO of Interstate Bus Company (Chicago, IL)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- The tax exemption allows us to focus more on our expansion plans and sustaining new routes.
- It's a welcome fiscal reprieve amid unpredictability in travel demand.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Manager at a Motorcoach Company (Seattle, WA)
Age: 33 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- This exemption is certainly beneficial in planning for future seasons.
- It could aid in rebuilding our operational capacity and perhaps in employee incentives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Fleet Maintenance Worker (Orlando, FL)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- Our company didn't get the grant, so the exemption doesn't directly affect us.
- I hope the overall industry stabilizing would lead to long-term job security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Tour Bus Guide (Phoenix, AZ)
Age: 25 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- The company’s edge in saving through taxed grants could potentially mean more work hours.
- It’s been a tough couple of years, any positive change is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Owner of a Limo Service (Houston, TX)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- As we didn’t get the grant, the tax exemption doesn’t affect us directly.
- I hope the indirect effects would normalize business dynamics over the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Operations Director at a Cross-Country Travel Service (San Francisco, CA)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The exemption from taxes could help us pivot back to pre-pandemic levels.
- It’s a positive step for financial sustainability in challenging times.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $200000000 (Low: $150000000, High: $250000000)
Year 2: $5000000 (Low: $4000000, High: $6000000)
Year 3: $1000000 (Low: $500000, High: $2000000)
Year 5: $100000 (Low: $50000, High: $150000)
Year 10: $10000 (Low: $5000, High: $15000)
Year 100: $1000 (Low: $500, High: $1500)
Key Considerations
- COVID-19 had a disproportionate impact on transportation services, necessitating the initial CERTS grants.
- Exemption from taxation is a temporary relief measure; long-term financial health depends on recovery of demand for transport services.