The Association of Equipment Manufacturers (AEM) calls for quick action on the proposed economic stimulus package.
In a letter to President Bush and Congressional leaders, AEM offered its recommendations for proposals to provide an immediate boost to the economy and encourage job creation.
- 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 U.S. businesses develop innovations which lead to long-term economic growth. This credit expired in 2007.
- 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 United States remains the world leader in economic growth and business development," said AEM President Dennis Slater.
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.
AEM is the North American-based international trade group serving the off-road equipment manufacturing industry (agriculture, construction, forestry, mining and utility).