The National Association of Manufacturers helped organize an April 1 letter by more than 80 groups to Congressional leaders calling for Congress to renew the expired bonus depreciation law through at least the rest of 2010. Bonus depreciation represents the kind of enhanced capital-cost recovery system that has proved to spur business investment.
From the letter:
Bringing back bonus depreciation will encourage companies of all sizes to invest in newer, more efficient, and more environmentally-friendly equipment, which will help large and small businesses alike. In the manufacturing sector, for example, many smaller companies produce custom-made equipment that is often sold to larger companies ineligible for Sec. 179, but which could claim bonus depreciation. The two capital investment incentives work well in concert. Both are sorely needed now to help spur sales and create jobs.
Reinstating bonus depreciation will help inoculate the economy against a backward slide in business capital investment in the months ahead, enhance the impact and benefits of other job creation legislation (e.g., infrastructure investment), encourage recovery in fragile, capital-intensive sectors of the economy (e.g., construction and manufacturing), and, most significantly, put Americans back to work.
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