Rep. Panetta Leads Bipartisan Letter Requesting CERTS Tax Exemption for Motorcoaches, School Buses, and Passenger Vehicles

WASHINGTON, DC – Today, Rep. Jimmy Panetta (D-Carmel Valley), along with Reps. Darin LaHood (R-Illinois), Albio Sires (D-New Jersey), and John Rose (R-Tennessee) led a bipartisan letter to House leadership asking them to make the Coronavirus Economic Relief for Transportation Services (CERTS) Act grants exempt from taxation. CERTS grants provide relief for the motorcoach, school bus, and passenger vessel industries devastated by the Covid-19 pandemic. Those industries provide essential transportation services to the public and were among the first to shut down in 2020, and will be among the last to fully recover. Unfortunately, CERTS Act grants, while extremely beneficial for those industries, only replaced about 20% of their lost revenue from 2020. A tax exemption for CERTS grants would be extremely beneficial for the continued recovery of motorcoach, school bus, and passenger vessel industries.

The letter can be viewed here.

"Our motorcoach and passenger vessels are a cornerstone of our tourism and hospitality industries on the central coast of California, but they are struggling to recover from the financial hits that they took during the pandemic," said Rep. Panetta. "Although Congress was able to help that industry with the CERTS Act grants, more needs to be done to ensure its full recovery. A tax exemption for those specific relief grants would strengthen the foundation not just for the survival of the motorcoach, school bus, and passenger vessel industry, but also for its continued success as an important part of our community and economy."

"In Tennessee, the motorcoach industry plays a vital role in our state's travel, tourism, and music industries," said Rep. Rose. "While I am glad the CERTS program secured targeted federal assistance for motorcoach operators and other transportation providers, this funding was used for emergency relief in the wake of the COVID-19 pandemic and should receive the same tax treatment that other pandemic relief programs received."

"Illinois' motorcoach businesses, bus companies, and school bus operators provide important transportation services to communities across our region and offer good-paying jobs," said Rep. LaHood. "To ensure that transportation service providers are ready and available for Americans once the economy reopens, Congress acted in a bipartisan manner to pass CERTS Act, similar to the Paycheck Protection Program. Making these funds tax-exempt is common sense, and would bring parity with other similar industries who received Paycheck Protection Program loans or Restaurant Revitalization Fund grants."

"The CERTS program has provided much needed relief for the motorcoach and school bus industries, which provide essential public services and were devastated by the COVID-19 pandemic," said Rep. Sires. "Making this program tax-exempt will provide critical support for grantees and bring parity with other industries that have received relief funds from Congress, such as the Paycheck Protection Program, Shuttered Venues Operators Grant, and the Restaurant Revitalization Fund grants, which are all tax-exempt."

"Grants from the CERTS program have been a windfall for U.S. passenger vessel operators who are still suffering from the debilitating effects of the coronavirus pandemic," said John Groundwater, Executive Director of the Passenger Vessel Association. "Our industry still has a steep hill to climb in reaching economic stability and we urge Congress to help by making CERTS non-taxable as it has for the Paycheck Protection Program and the Restaurant Revitalization Fund."

"Motorcoach companies around the country are grateful for the support they have received through the CERTS program, helping them cover a portion of their pandemic-related losses," said United Motorcoach Association (UMA) President and CEO Scott Michael. "Ensuring the CERTS money is properly considered as non-taxable relief would help drive the maximum benefit and would be consistent with other relief programs such as the Shuttered Venues Operators and Restaurant Revitalization grant funds. UMA and its members thank Representatives Panetta, LaHood, Sires and Rose for their leadership on this effort, as well as the Members who have joined in support of this important initiative."

"The National School Transportation Association (NSTA) firmly supports making CERTS grants non-taxable similar to other relief for businesses impacted by the Covid-19 pandemic. The CERTS program has provided a critical safety net for school bus operators during this turbulent period," said Curt Macysyn, Executive Director of NSTA. "NSTA thanks Rep. Panetta, LaHood, Sires and Rose for leading on this important issue."

"ABA and the motorcoach industry applaud Reps. Panetta, LaHood, Sires and Rose for their collective leadership on helping small businesses survive and start to rebuild post the COVID-19 pandemic," said ABA President & CEO Peter Pantuso. "It would be disingenuous for Congress to ask for emergency funding back, after providing it to these industries who have been fighting desperately to survive. Taxing CERTS grants, will just create another hardship on our family businesses who are still 40-60 percent down from pre-pandemic passenger and operating levels."

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