NAM Applauds Key Investment Incentives in the “Start Up Jobs and Innovation Act”

By November 7, 2013Taxation

Manufacturers know firsthand that capital investment is critical for economic growth, job creation and competitiveness, which is why the NAM has long supported a strong capital cost recovery system. Kudos to Sens. Patrick Toomey (R-PA) and Bob Menendez (D-NJ) for introducing the “Start Up Jobs and Innovation Act” and for recognizing the critical role that Sec. 179 expensing plays in encouraging investment by smaller manufacturers. As a capital intensive industry sector, making permanent the higher expensing limit that is in law today is key to helping manufacturers grow and compete. This is a key provision for NAM members.

More generous expensing  lowers the after-tax cost of investing  for manufacturers making capital investments and helps spur sales for manufacturers selling the equipment. The NAM applauds the Senators for making permanent the current $500,000 expensing limit, eliminating the phase-out, and indexing the limit to inflation. These common-sense updates to this provision will allow more manufacturers to realize the benefit of expensing. Manufacturing has the highest multiplier of any other economic sector — every dollar spent in manufacturing adds another $1.48 to the economy. A permanent expansion of Sec. 179 benefits U.S. manufacturers and the economy as a whole. We applaud the Senators for their leadership in this area.

Carolyn Lee

Carolyn Lee

Senior Director of Tax Policy at National Association of Manufacturers
Carolyn Lee is Senior Director of Tax Policy at the National Association of Manufacturers (NAM), the nation's largest industrial trade association. In this role Carolyn is responsible for portions of the NAM's tax portfolio including issues individual marginal tax rates - which are a top priority for small and medium sized manufacturers - as well tax issues relating to investment income, energy efficiency and capital cost recovery.
Carolyn Lee

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