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Permanent Tax Policy: Helping America Invest and Create More Jobs

July 11, 2014

Businesses all across the country are applauding H.R. 4718, which will reduce the tax burden on businesses by making permanent 50 percent bonus depreciation.  At a time when economic growth is stagnant, making certain tax policy permanent encourages businesses to grow, invest and hire. 

Letter from over 100 associations representing millions of businesses and workers across the country: “[W]e support swift action on legislation (H.R. 4718) to permanently extend bonus depreciation, creating a pro-investment tax climate that will spur much needed economic growth and jobs and provide a bridge to broader tax reform….Renewing bonus depreciation and the comparable AMT credit in lieu of bonus depreciation will provide an immediate incentive for businesses to make additional capital investments, thereby boosting the U.S. economy and job creation.”

American Airlines, Arch Coal, CMS Energy, General Motors, The Goodyear Tire Company, T-Mobile, United Airlines, Xerox (AMT Coalition): “H.R. 4718 raises the cap to 50%, which will provide an immediate incentive for businesses to make new capital investments in the United States, boosting the U.S. economy and leading to greater job creation in these important industries.”

AdvaMed: “H.R. 4718 would provide needed certainty for tax planning purposes and allow companies – including entrepreneurial developers of advanced medical technologies – to invest more heavily in their businesses while encouraging growth across the country.”

American Iron and Steel Institute: “As such, 50 percent bonus depreciation as well as the provision that allows companies that fall under the corporate AMT to claim unused AMT credits in lieu of bonus depreciation will spur increased business investment in new facilities and equipment, which are critical to economic growth and job creation.”

American Rental Association: “The 50-percent bonus depreciation provisions that have been part of U.S. tax policy for more than a decade have allowed ARA members to make significant additional investments in equipment by reducing ARA members’ tax liabilities and increasing cash flow.”

Associated Builders and Contractors: “Bonus depreciation has been a vital provision since its resumption over five years ago, and enacting it permanently would serve to create jobs, increase wages, and grow the economy.”

Associated General Contractors: “Depreciation policy allows for many construction firms to take advantage of this tax deduction to purchase new equipment to replace antiquated machinery, and or meet new safety and emission standards.”

Business Roundtable
: “Private-sector investment is a major contributor to job creation, wage growth, and U.S. competitiveness.  Fifty-percent expensing reduces the cost of capital for business investment, thereby allowing businesses to undertake a greater amount of investment.”

CTIA – The Wireless Association: “If adopted, H.R. 4718 will facilitate continued expansion of wireless broadband networks, supporting an innovative, growing, and U.S.-based applications development sector, as well as enabling innovations in areas such as telematics, smart-grids, and telemedicine….Bonus depreciation encourages investment, promotes innovation that advances American leadership, and supports high-tech, high-wage jobs.”

Farm Bureau: “Tax provisions that accelerate expensing and depreciation allow farmers and ranchers to better manage cash flow, minimize tax liabilities and reduce borrowing….bonus depreciation gives those that exceed expensing limits a way to upgrade and modernize their businesses.”

National Association of Manufacturers: “Making this policy a permanent part of the tax code will provide job creators of all sizes with the certainty needed for effective business planning, driving investment and job growth.  The expiration of this incentive at the end of 2013 has had a chilling effect on the economy with many manufacturers putting capital investment decisions on hold.  Acting now to make 50 percent first-year expensing permanent will reduce this uncertainty and enable businesses to make investments that will increase jobs and productivity.”

National Grocers Association: “This provision provides an important incentive for grocers to expand their business, enabling them to grow and thrive in a competitive industry. By making bonus depreciation permanent, NGA members can operate without the threat of its expiration and therefore plan future business investment. Most importantly, this tax provision enables NGA’s members to grow and create jobs.”

National Propane Gas Association: “H.R. 4718 would help companies better access capital, invest in new facilities and create American jobs by permanently extending 50 percent bonus depreciation….The goal is to create a pro-investment tax climate that will spur much needed economic growth and jobs and provide a bridge to broader tax reform.”

National Retail Federation: “Bonus depreciation provides an important incentive for investment in the United States, which will help to spur our sluggish economy….NRF urges you to support H.R. 4718, which provides an important economic stimulus for the economy as a whole and which eliminates an inequity in the current law with respect to their stores.”

T-Mobile: “…passage of H.R. 4718 will immediately free up much needed capital locked in the Treasury and help T-Mobile purchase additional spectrum from the FCC and make additional capital investments in our advanced wireless network in 2015 and 2016. This is ready capital sitting on the sidelines that, if authorized by Congress, will help boost the U.S. economy and lead to greater job creation in several important growth sectors of the U.S. economy, including telecommunications.”

U.S. Chamber of Commerce: “As the U.S. economy continues to recover, this legislation would restore 50% depreciation and provide a real incentive for businesses to make significant investments here at home.”

US Telecom: “Permanently extending 50% expensing and the comparable AMT credit in lieu of that provision will provide certainty, predictability, and an immediate incentive for businesses to make and plan for additional capital investments this year and beyond….we urge Congress to pass this legislation, which is so important to job creation and our economic growth.”

Verizon: “Fifty percent expensing incents companies like ours to increase their investment in, and speed their transition to infrastructure and manufacturing technologies, such as broadband. This drives higher efficiency, competitiveness and job creation across the entire U.S. economy.”