Equipment Industry Can Benefit From Use Of Bonus Depreciation In Economic Stimulus Package
Statement by Dennis Slater, president of the Association of Equipment Manufacturers
As rebate checks go out to the American people, the U.S. economy is expected to benefit from the economic stimulus package passed by Congress and signed in February 2008 by President Bush.
Businesses will also benefit from a less publicized, but important provision in the package, states the Association of Equipment Manufacturers (AEM).
AEM notes that equipment manufacturers and buyers will find the legislation’s bonus depreciation provision of particular interest. AEM President Dennis Slater outlines why below and notes availability of brochure with more details.
AEM strongly supported the economic stimulus legislation, especially the section that provides a bonus deprecation for businesses to deduct 50 percent of the cost of new equipment purchased and placed into service in 2008. A healthy equipment industry contributes greatly to the overall strength of the economy, helping Americans to keep jobs.
In a recent poll of AEM construction equipment manufacturing members, 60 percent of respondents said that the bonus depreciation provision will provide their customers with an incentive to purchase new equipment. Manufacturers expect the bonus depreciation will spur business investment in new capital goods by reducing the current year cost of the asset. Temporary bonus depreciation provisions passed in 2003 have been credited with boosting business spending by four percent in the six months following enactment.
More details about the requirements of the depreciation bonus and what it means to equipment buyers are available online in a brochure produced by AEM with the Associated Equipment Distributors (AED) - contact AEM’s Washington office for a copy - Dana Kinsey at dkinsey@aem.org or call 202-898-9064.
