The Association of Equipment Manufacturers (AEM) has called for quick action on the proposed economic stimulus package.
In a letter to President George W. Bush and congressional leaders, the AEM offered its recommendations for proposals to provide an immediate boost to the economy and encourage job creation.
The association’s recommendations include:
- Bonus Depreciation – Enacting a 50 percent bonus depreciation provision would spur business investment in new capital goods by reducing the current year cost of the asset. According to the National Association of Manufacturers, the bonus depreciation provisions passed in 2003 increased business spending by four percent in the six months following enactment.
- Research and Development Tax Credit – The R&D tax credit creates jobs in the near term and helps
- Section 179 Expensing – Increasing the section 179 expensing limits to $400,000 for purchases of business assets up to $1 million would target small and medium-sized businesses and encourage investment.
- Agriculture Equipment Depreciation – Included in the Senate’s version of the Farm Bill is a provision to update the depreciation schedule for agriculture equipment to five years from its current seven. Estimates say the change will increase farmers’ investment in agriculture equipment and raise farm income by $800 million per year. The agriculture equipment industry annually generates over $82 billion in economic activity.
“We are asking Congress and the president to lead the way with a bipartisan effort to help ensure the
Along with a short-term economic boost, AEM also urges Congress to pass legislation that promotes long-term economic growth, most notably approving free trade agreements and providing funding to revitalize our nation’s critical infrastructure.
“Our continued prosperity and quality of life are connected to our ability to trade freely in the global marketplace, as well as dependable transportation routes and improvements in water quality,” Slater adds.
More information is available at www.aem.org.