Congress Urged To Extend Capital Investment Incentives

In a letter to congressional leaders, Farm Equipment Manufacturers Association (FEMA), the North American Equipment Dealers Association (NAEDA), the American Rental Association (ARA), the Associated Equipment Distributors (AED) and the Association of Equipment Manufacturers (AEM), are calling for a one-year extension of the capital investment incentives in the Economic Stimulus Act (ESA) of 2008. The groups want the 50% bonus depreciation and increased expensing levels in Sec. 179, included in the ESA, extended before they expire on Dec. 31, 2008.

The letter to Reps. Charles Rangel (D-NY) and James McCrery (R-LA) and Sens. Max Baucus (D-MT) and Charles Grassley (R-IA) was cosigned by the organizations following a meeting in St. Louis where they discussed the need to push for an extension of ESA business incentives to stimulate economic activity.

“One association study found that one-third of its members used ESA incentives to purchase equipment in 2008,” said Paul Kindinger, president and CEO, NAEDA. “Others, however, who have been holding off on making purchases because of downturns in housing and higher energy prices, indicated they would be more open to investing in equipment next year if the ESA were extended.”

“We believe a coordinated push to extend the capital investment incentives speaks to the commitment of leading industry associations to ensure that American businesses, their members, don’t lose confidence in the economy,” said Kindinger. “Congress has extended needed relief to deal with mortgage issues. We are asking for an extension of benefits already in place.”