(CHICAGO) July 14, 2014 – NAMA recently joined more than 75 business associations and organizations led by the National Association of Manufacturers (NAM) in signing a letter to the U.S. House of Representatives to support of H.R. 4718, a piece of tax legislation that made permanent an important tax provision that expired at the end of 2013. The U.S. House passed H.R. 4718 on July 11, 2014.
Specifically, HR 4718 permanently extends bonus depreciation to 50 percent, retroactive to January 1, 2013. This measure is significant as several companies have responded positively to the availability of 50 percent expensing, including an important part of the legislation which allows companies to utilize Alternative Minimum Tax (AMT) credits in lieu of 50 percent 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.
“The passage of this piece of legislation is extremely important because it represents another step forward in the effort to create a pro-business tax environment promoting much needed economic growth, jobs, and paving the way to broader tax reform,” said Eric Dell, NAMA SVP of Government Affairs. “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,” he continued.
“NAMA applauds the efforts of NAM and other coalition partners in continuing the push for comprehensive tax reform, and will further support legislation similar to H.R. 4718 that provides businesses with certainty of key tax rules in the years ahead,” Dell concluded.
Founded in 1936, NAMA is the association representing the $42 billion U.S. vending and refreshment service industry. With more than 1800 member companies – including many of the world’s most recognized brands – NAMA provides advocacy, education and research for its membership. Visit NAMA on Facebook, Twitter and LinkedIn.