AED Leads Effort to Extend Purchasing Tax Incentives

Written by Construction Equipment Guide

Created on Friday, 11 December 2009 19:19

A broad coalition of 31 national organizations representing the construction, manufacturing, aviation, professional services and distribution sectors has joined the Associated Equipment Distributors (AED) in calling on Congress and President Obama to extend business purchasing tax incentives included in recent economic stimulus legislation.

The American Recovery and Reinvestment Act (ARRA) allows businesses to write off 50 percent of new equipment purchases and permits qualified small businesses to expense up to $250,000. The depreciation bonus and increased small business expensing provisions were included in the ARRA to encourage companies to make new capital investments in 2009. Both incentives expire at the end of the year.

In a letter to congressional leaders and the White House coordinated by AED’s Washington office and sent on Dec. 2, the coalition said that while the depreciation bonus and increased small business expensing levels have had a positive impact, “the depression in capital-intensive sectors of the economy [e.g., construction and manufacturing], lack of access to credit, and general uncertainty about the future of the economy have combined to prevent many businesses from taking advantage of the law and the incentives have not had the chance to fully achieve their intended effect.”