Sometimes it seems as though there’s little to agree on in Washington, D.C. but every now and again you can see the outlines of important areas of agreement. In the past day this has occurred in a little corner of the tax arena concerning what is known as enhanced Section 179 expensing and making this on and off provision permanent for small and medium sized businesses. We’ve seen the introduction of a bipartisan bill in the House, H.R. 646 by Reps. Pat Tiberi (R-OH) and Ron Kind (D-WI). This also coincided with the release of the President’s budget request to Congress includes a provision that would make enhanced Section 179 permanent (albeit at a different level than the legislative proposals) and in the Senate with the introduction of the “Start-up Jobs and Innovation Act” by Sens. Pat Toomey (R-PA), Bob Menendez (D-NJ), Pat Roberts (R-KS) and Tom Carper (D-DE). The NAM appreciates the leadership of the Senators in supporting this provision and including it in their legislation. (continue reading…)
Kudos from America’s manufacturers again go to Reps. Pat Tiberi (R-OH) and Ron Kind (D-WI) for reintroducing their bipartisan bill, H.R. 636, make enhanced Section 179 expensing permanent. This bill, “America’s Small Business Tax Relief Act” would, if enacted, put an end to what most business-owners have come to think of as a never-ending rollercoaster ride for this critical provision of the tax code. As we’ve long written about in this space, the on-again and off-again nature of too many provisions in the tax code make an already difficult competitive environment worse for too many of our nation’s small and medium sized manufacturers. As chronicled by the NAM last November during “Investment Week,” the fate of policies like enhanced Section 179 plays a role in the investment decisions of business owners across the nation. (continue reading…)
Some things like wine or scotch improve with time. Bad regulations though, do not. In fact, if anything, more time just makes it clear how unreasonable some ideas really are. (continue reading…)
It’s been said that nothing in life is certain but death and taxes. Well it appears that the President wants to double down on this certainty by proposing to expand the death tax. (continue reading…)
On Friday, November 14th, the NAM wrapped up “Investment Week” with a Shopfloor Hill briefing held in the Rayburn House Office Building which focused on the importance of the investment tax incentives that are currently part of the “tax extenders” debate. (continue reading…)
Throughout “Investment Week” we are seeking to highlight the impact of these provisions on manufacturers large and small. Today, we want to highlight the ripple-effect that enhanced Section 179 has in the larger economy. This provision is helpful for manufacturers that are investing and for the manufacturers of capital equipment.
A good example of this synergy is Green River Cabins, LLC a manufacturer of RV Park Models and Modular Cabins, in Campobello, South Carolina. According to Company President, Dean Garritson, “as a small manufacturer, enhanced Section 179 has significant impact on our decision to upgrade or add equipment. Additionally, because the RV Park Models are personal property, when used in a business, these purchases are often eligible for Section 179.”
In fact, about 15 percent of Green River Cabins’ park model sales are sold to businesses that rent these units for nightly and weekly getaways. Over the years business owners tend to add units each year and enhanced Section 179 is critical to their decision to buy the units. So this provision is not only beneficial to Green River Cabins and helps grow their own business and sales and their whole supply chain but it is also beneficial to the business that is purchasing the cabins and their employees and supply chains as well.
According to Dean, “in short, our business uses section 179 to reduce the cost of capital equipment and to sell our product. We are one of many manufacturers that sell capital equipment and the positive impact of section 179 to our cash flow and sales helps to offset the increasing cost of government regulation.”
This is just one example of the ripple-effect that can be expanded with the permanent extension of enhanced Section 179 expensing. Manufacturers large and small call on the Congress to take action and renew and extend these provisions.
Since 1948, Unverferth Manufacturing has been working to improve and serve America’s farm operations. From humble beginnings as a company begun by a son and his father in their family’s barn manufacturing and marketing dual and triple wheel systems and components, Unverferth today is a leading manufacturer and marketer of tillage equipment, pull-type sprayers, grain carts and grain wagons, and agricultural dual and specialty wheels. Today the company has three manufacturing facilities: two in Ohio and one in Iowa and eight sales branches across North America. (continue reading…)
As part of “Investment Week” we want to highlight the role that pro-investment tax policy plays in the success of our nation’s manufacturing sector. These provisions are used by manufacturers large and small and are a particularly high priority for small and medium-sized manufacturers. In order to compete in a worldwide economy, manufacturers need to plan and invest and meet emerging needs. Extension of the pro-growth policies that expired at the end of 2013 would amount to a major step towards a tax code that will promote investment. (continue reading…)
The NAM has long advocated for pro-investment tax policies including investment incentives like enhanced Section 179 expensing, 50 percent first year expensing also known as “bonus depreciation” and provisions that allow companies to accelerate the use of AMT credits in lieu of bonus. (continue reading…)
This week the National Association of Manufacturers (NAM) is sponsoring “Investment Week” to highlight the critical role that capital investment plays in a competitive manufacturing sector.
While the country has officially come out of the Great Recession, economic growth is anemic and the economy isn’t where it should be. (continue reading…)