CHICAGO -- The National Automatic Merchandising Association has joined more than 75 business associations in signing a letter to the U.S. House of Representatives to support legislation that makes permanent an important tax provision that expired at the end of 2013. The National Association of Manufacturers led the effort.
The House passed H.R. 4718 on July 11; it awaits a decision by the Senate.
Specifically, the bill permanently extends bonus depreciation to 50%, retroactive to Jan. 1, 2013. This measure is significant, according to NAMA, as several companies have responded positively to the availability of 50% expensing, including an important part of the legislation that allows them to utilize Alternative Minimum Tax (AMT) credits in lieu of 50% expensing.
Renewing bonus depreciation and the AMT credit in lieu of bonus depreciation will provide incentives for businesses to make additional capital investments which, by extension, will boost the economy and spur job creation, NAMA said.
"Uncertainty about bonus depreciation negatively impacts confidence in purchasing equipment within the vending and refreshment services industry, especially for the majority of the industry's small business people," said Eric Dell, NAMA senior vice-president of government affairs.
House Votes To Make Small Business Tax Relief Permanent; H.R. 4457 Heads To Senate