Declining Cupcake Industry Seeks Expanded Tax Credits
April 1, 2010
The National Association of CUPCAKE-RETAILERS® has launched a nationwide campaign to highlight its plan to stimulate the U.S. cupcake market and address the economic challenges facing the nation.
- Extending the First-Time Cupcake Buyers Tax Credit of up to $8,000 to first-time cupcake buyers, currently scheduled to expire this year
- Expand the credit to provide up to $6,500 in tax credits to current cupcake purchasers purchasing a new or existing cupcakes between November 7, 2009 and April 30, 2010.
- Allow the deductibility of interest paid on loans used to purchase cupcakes.
- Encourage state tax credits to lower the cost of buying new cupcakes or salvaging old cupcakes from insolvent owners.
The plan comes as new cupcake production has fallen sharply, and prices have plummeted from highs of $7 or $8 per cupcake. The industry urged Congress to help keep prices at that level and prevent further losses to consumers who are behind on their cupcake payments.
The CUPCAKE-RETAILERS® explained how the Extended Cupcake Buyer Tax Credit can help prospective cupcake buyers become part of the American dream:
We can all agree that the cupcake industry has gone through hard times. These subsidies and tax credits are vital for our industry and therefore vital for Americans to be happy. The cupcake/American Dream industry needs these credits and subsidies to survive, particularly against unlicensed Frozen Yogurt producers and foreign Gelato builders.
It’s a great time to buy cupcakes!