Law Change Brings Bigger Tax Refunds
Money-losing U.S. airlines including the two largest, UAL Corp. and AMR Corp., said they were each getting several hundred million dollars in tax refunds because of a recent tax law change.
President Bush signed an economic stimulus package March 6 that allows companies to “carry back” net operating losses incurred during 2001 and 2002 over the last five years. Tax laws previously allowed a carry-back period of only two years.
United Airlines spokeswoman Susana Leyva said the carrier has received a $464-million tax refund as a result of the change.
The airline also got $644 million in direct cash aid from the landmark bailout act passed in the wake of the Sept. 11 attacks, bringing its total financial aid from the government to more than $1 billion.
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