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Business Coalition Urges Support for Extending Full Bonus Depreciation

JUN. 1, 2012

Business Coalition Urges Support for Extending Full Bonus Depreciation

DATED JUN. 1, 2012

DOCUMENT ATTRIBUTES

Institutional Authors
Aeronautical Repair Station Association
Aerospace Industries Association
Air Conditioning Contractors of America
Airlines for America
American Airlines
American Concrete Pressure Pipe Association
American Council of Engineering Companies
American Institute of Architects
American Rental Association
American Road & Transportation Builders Association
American Traffic Safety Services Association
AMT - The Association For Manufacturing Technology
Arch Coal
Association Equipment Distributors
Association of American Railroads
Association of Equipment Manufacturers
Caterpillar Inc.
Cliffs Natural Resources
CMS Energy
Comcast
Cox Enterprises
CTIA - The Wireless Association
Dallas/Fort Worth Association Equipment Distributors
Deep South Equipment Dealers Association
Distribution Contractors Association
Far West Equipment Dealers Association
Farm Equipment Manufacturers Association
FedEx
Frontier Communications
General Aviation Manufacturers Association
General Dynamics
General Motors Company
Hawker Beechcraft Corporation
Heating, Air-Conditioning & Refrigeration Distributors International
Illinois Equipment Distributors Association
Interlocking Concrete Pavement Institute
Iowa-Nebraska Equipment Dealers Association
John Deere
Kansas City Associated Equipment Distributors
Lockheed Martin Corporation
Material Handling Equipment Distributors Association
Memphis Associated Equipment Distributors
Mid-America Equipment Retailers Association
Minnesota-South Dakota Equipment Dealers Association
Montana Equipment Dealers Association
National Asphalt Pavement Association
National Association of Manufacturers
National Automobile Dealers Association/American Truck Dealers
National Stone, Sand & Gravel Association
National Cable & Telecommunications Association
North American Equipment Dealers Association
North Dakota Implement Dealers Association
Northeast Equipment Dealers Association Inc.
Northrop Grumman Corporation
NUCA - Representing Utility & Excavation Contractors
Ohio Aggregates & Industrial Minerals Association
Ohio Contractors Association
Ohio Equipment Distributors Association
Ohio-Michigan Equipment Dealers Association
Oklahoma Associated Equipment Distributors
Peabody Energy
Raytheon Company
Rockwell Collins
SouthEastern Equipment Dealers Association
SouthWestern Equipment Dealers Association
TechAmerica
Boeing Company
Goodyear Tire & Rubber Company
Shaw Group
Time Warner Cable
T-Mobile
U.S. Chamber of Commerce
Uni-Bell PVC Pipe Association
USTelecom Association
Verizon
Volvo Group North America
Water and Wastewater Equipment Manufacturers Association Inc.
West Tennessee Branch of the Associated General Contractors
Western Business Roundtable
Xerox
Cross-Reference
For H.R. 4196, see Doc 2012-5361 or 2012 TNT 51-19 .

For S. 2240, see Doc 2012-6983 or 2012 TNT 64-19 .
Code Sections
Section 168
Section 179
Subject Area/Tax Topics
Incentives
Legislative tax issues
Jurisdictions
United States
Language
English
Tax Analysts Document Number
Doc 2012-13154
Tax Analysts Electronic Citation
2012 TNT 119-35

June 1, 2012

The Honorable John Boehner

Speaker of the House of Representatives

The U.S. Capitol

Washington, D.C. 20515

The Honorable Harry Reid

Senate Majority Leader

The U.S. Capitol

Washington, D.C. 20510

The Honorable Nancy Pelosi

House Minority Leader

The U.S. Capitol

Washington, D.C. 20515

The Honorable Mitch McConnell

Senate Minority Leader

The U.S. Capitol

Washington, D.C. 20510

Dear Congressional Leaders:

The undersigned companies and associations strongly support and ask for immediate action on two bipartisan companion bills: H.R. 4196, a bill introduced by Congressmen Tiberi, Larson, Paulsen, Neal, Marchant, and Pascrell and S. 2240, introduced by Senators Stabenow, Blunt, Brown (OH), and Roberts.

These bills will provide an immediate and temporary incentive for businesses to make new capital investments in the United States by extending 100 percent expensing (bonus depreciation), the Alternative Minimum Tax (AMT) Credit in lieu of bonus depreciation provisions and including companies using PCM (percentage of completion method of accounting) through 2012.

Enacting this legislation will enable businesses to access capital for immediate investment and create jobs in the United States now.

From September 2010 through the end of 2011, businesses could elect to immediately deduct the cost of qualifying purchased property. Currently, however, businesses can only elect to deduct 50 percent of the cost of these investments. As our economy continues to struggle, this much-needed legislation restores the 100 percent bonus depreciation through 2012 and provides a real incentive for businesses to make significant investments here at home.

Additionally, the AMT in lieu of bonus provision would allow companies that do not benefit from the extension of full bonus depreciation -- to utilize their existing AMT credits (pre-paid taxes) if they make the same types of capital investments that are required under bonus depreciation.

Companies that enter into certain long-term contracts requiring PCM are currently precluded from taking advantage of bonus depreciation since income is perversely accelerated into the current year. The bills would provide companies utilizing this accounting method with parity and allow them to elect bonus depreciation.

Because of the importance of this legislation to U.S. economic growth and competitiveness, we strongly urge you to support immediate action on this pro-growth, pro-jobs legislation. Thank you in advance for your support of this bipartisan, bicameral legislation.

Sincerely,

Aeronautical Repair Station

Association

Aerospace Industries Association

Air Conditioning Contractors of

America

Airlines for America

American Airlines

American Concrete Pressure Pipe

Association

American Council of Engineering

Companies

American Institute of Architects

American Rental Association

American Road & Transportation

Builders Association

American Traffic Safety Services

Association

AMT -- The Association For

Manufacturing Technology

Arch Coal

Associated Equipment Distributors

Association of American Railroads

Association of Equipment

Manufacturers

Caterpillar Inc.

Cliffs Natural Resources

CMS Energy

Comcast

Cox Enterprises

CTIA -- The Wireless Association

Dallas/Fort Worth Associated

Equipment Distributors

Deep South Equipment Dealers

Association

Distribution Contractors

Association

Far West Equipment Dealers

Association

Farm Equipment Manufacturers

Association

FedEx

Frontier Communications

General Aviation Manufacturers

Association

General Dynamics

General Motors Company

Hawker Beechcraft Corporation

Heating, Air-Conditioning &

Refrigeration Distributors

International

Illinois Equipment Distributors

Association

Interlocking Concrete Pavement

Institute

Iowa-Nebraska Equipment Dealers

Association

John Deere

Kansas City Associated Equipment

Distributors

Lockheed Martin Corporation

Material Handling Equipment

Distributors Association

Memphis Associated Equipment

Distributors

Mid-America Equipment Retailers

Association

Minnesota-South Dakota Equipment

Dealers Association

Montana Equipment Dealers

Association

National Asphalt Pavement

Association

National Association of

Manufacturers

National Automobile Dealers

Association/American Truck Dealers

National Stone, Sand & Gravel

Association

National Cable & Telecommunications

Association

North American Equipment Dealers

Association

North Dakota Implement Dealers

Association

Northeast Equipment Dealers

Association, Inc.

Northrop Grumman Corporation

NUCA -- Representing Utility &

Excavation Contractors

Ohio Aggregates & Industrial

Minerals Association

Ohio Contractors Association

Ohio Equipment Distributors

Association

Ohio-Michigan Equipment Dealers

Association

Oklahoma Associated Equipment

Distributors

Peabody Energy

Raytheon Company

Rockwell Collins

SouthEastern Equipment Dealers

Association

Southwestern Equipment Dealers

Association

TechAmerica

The Boeing Company

The Goodyear Tire & Rubber

Company

The Shaw Group

Time Warner Cable

T-Mobile

U.S. Chamber of Commerce

Uni-Bell PVC Pipe Association

USTelecom Association

Verizon

Volvo Group North America

Water and Wastewater Equipment

Manufacturers Association, Inc.

West Tennessee Branch of the

Associated General Contractors

Western Business Roundtable

Xerox

DOCUMENT ATTRIBUTES

Institutional Authors
Aeronautical Repair Station Association
Aerospace Industries Association
Air Conditioning Contractors of America
Airlines for America
American Airlines
American Concrete Pressure Pipe Association
American Council of Engineering Companies
American Institute of Architects
American Rental Association
American Road & Transportation Builders Association
American Traffic Safety Services Association
AMT - The Association For Manufacturing Technology
Arch Coal
Association Equipment Distributors
Association of American Railroads
Association of Equipment Manufacturers
Caterpillar Inc.
Cliffs Natural Resources
CMS Energy
Comcast
Cox Enterprises
CTIA - The Wireless Association
Dallas/Fort Worth Association Equipment Distributors
Deep South Equipment Dealers Association
Distribution Contractors Association
Far West Equipment Dealers Association
Farm Equipment Manufacturers Association
FedEx
Frontier Communications
General Aviation Manufacturers Association
General Dynamics
General Motors Company
Hawker Beechcraft Corporation
Heating, Air-Conditioning & Refrigeration Distributors International
Illinois Equipment Distributors Association
Interlocking Concrete Pavement Institute
Iowa-Nebraska Equipment Dealers Association
John Deere
Kansas City Associated Equipment Distributors
Lockheed Martin Corporation
Material Handling Equipment Distributors Association
Memphis Associated Equipment Distributors
Mid-America Equipment Retailers Association
Minnesota-South Dakota Equipment Dealers Association
Montana Equipment Dealers Association
National Asphalt Pavement Association
National Association of Manufacturers
National Automobile Dealers Association/American Truck Dealers
National Stone, Sand & Gravel Association
National Cable & Telecommunications Association
North American Equipment Dealers Association
North Dakota Implement Dealers Association
Northeast Equipment Dealers Association Inc.
Northrop Grumman Corporation
NUCA - Representing Utility & Excavation Contractors
Ohio Aggregates & Industrial Minerals Association
Ohio Contractors Association
Ohio Equipment Distributors Association
Ohio-Michigan Equipment Dealers Association
Oklahoma Associated Equipment Distributors
Peabody Energy
Raytheon Company
Rockwell Collins
SouthEastern Equipment Dealers Association
SouthWestern Equipment Dealers Association
TechAmerica
Boeing Company
Goodyear Tire & Rubber Company
Shaw Group
Time Warner Cable
T-Mobile
U.S. Chamber of Commerce
Uni-Bell PVC Pipe Association
USTelecom Association
Verizon
Volvo Group North America
Water and Wastewater Equipment Manufacturers Association Inc.
West Tennessee Branch of the Associated General Contractors
Western Business Roundtable
Xerox
Cross-Reference
For H.R. 4196, see Doc 2012-5361 or 2012 TNT 51-19 .

For S. 2240, see Doc 2012-6983 or 2012 TNT 64-19 .
Code Sections
Section 168
Section 179
Subject Area/Tax Topics
Incentives
Legislative tax issues
Jurisdictions
United States
Language
English
Tax Analysts Document Number
Doc 2012-13154
Tax Analysts Electronic Citation
2012 TNT 119-35

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