Senate Fails, Equipment Sales Could Be Hurt

With the economic problems facing the U.S., it’s hard to believe that Congress failed to extend helpful tax provisions before leaving the Capitol on Christmas Eve. While legislation to extend the five-year equipment depreciation tax incentive and other expiring tax provisions (H.R. 4213) passed the House of Representatives, the Senate failed to take any action on this tax extenders package.

In our meetings with the North American Equipment Dealers Association (NAEDA) it’s clear they believe the lapse in these tax provisions could slow equipment sales in 2010. We will continue to work with NAEDA to push for legislation to reinstate these tax provisions retroactively in 2010.

We urge you to continue to press your Senators for quick action on these provisions as Congress returns Jan. 5 to start the new year. The sooner Congress gets back to work to enact these tax provisions, the better chance farmers and ranchers will return to dealerships. We urge you to make calls to your senators expressing support for the bonus depreciation provision, Section 179 extension and the five-year equipment depreciation provision.