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This Could Be the Year!

Every sports fan begins their team’s season thinking, “this could be the year” and hopes for the stars to align so that they can watch their favorite team in the title game.

In the tax policy world, we continue to hope that this is the year where Congress will pass, and the Administration will sign into law, comprehensive tax reform. However, just as athletes know you cannot forget about the fundamentals, as Congress continues to work towards comprehensive tax reform, they need to also ensure that the basics of sound tax policy are in place for our economy to grow. To that end, manufacturers across the country applaud the introduction today of H.R. 2510 by Rep. Pat Tiberi (R-OH) that would make permanent 50% first year expensing, aka “bonus depreciation” along with a complimentary provision which allows companies with AMT credits to accelerate the use of these credits in lieu of bonus depreciation. (continue reading…)

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Headwinds

As the NAM’s Chief Economist, Chad Moutray, pointed out in his blog “The U.S. Economy Stagnated in the First Quarter” on yesterday’s dismal GDP numbers, there are “a number of headwinds in the economy which have negatively impacted manufacturing activity. These challenges include weaknesses abroad, a strong U.S. dollar, lower crude oil prices, a West Coast ports slowdown, bad weather in some regions of the country and a still-cautious consumer.” As Dr. Moutray pointed out, a significant “challenge for manufacturers was the fact that consumer spending on goods was up only 0.2 percent. Businesses also spent dramatically less on nonresidential structures, with equipment spending slowing to a crawl.” (continue reading…)

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Spring Showers Bring Highway Construction Season

As the calendar page turns to spring and the snowy parts of our nation defrost, attention turns to the upcoming highway and infrastructure construction season. Too long stitched together by a series of short term funding patches or short term reauthorizations, our nation’s infrastructure is in need of a long term solution to provide consistent funding for much needed upgrades and repairs to our country’s crumbling infrastructure. (continue reading…)

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Something We Can All Agree On

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…)

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Try, Try Again

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…)

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Some Things Just Don’t Improve With Time

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…)

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Death and Taxes

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…)

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NAM Hosts Shopfloor Briefing on Investment Week

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…)

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The Ripple-Effect

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.

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Investment Incentives Help Farmers

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…)

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