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American Steel Institute Supports Tax Provisions for Capital Investment
03/26/2014 - The American Iron and Steel Institute (AISI) joined 22 other manufacturing and business groups in urging the congressional leadership to renew bonus depreciation which encourages increased capital investment.
In a letter to Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY), and House Speaker John Boehner (R-OH) and Minority Leader Nancy Pelosi (D-CA), AISI and others pressed the case that "immediate renewal of bonus depreciation for 2014 will make an important difference in sustaining and expanding necessary capital investment and…job creation."
Bonus depreciation allows a business to more quickly recover the cost of capital investments, like the purchase of major equipment and machinery.
Thomas J. Gibson, president and CEO of AISI, said, "For capital intensive industries like steel, whose investments require significant expenditures, immediate or accelerated expensing has always been viewed as one of the most effective ways to spur real business investment and make U.S. manufacturing more competitive."
"The U.S. economy continues to underperform …at great cost to workers, businesses and taxpayers. Renewing bonus depreciation, and the comparable Alternative Minimum Tax credit in lieu of bonus depreciation, will provide an immediate incentive for businesses to make additional capital investments, thereby boosting the U.S. economy," the letter concluded.
Bonus depreciation allows a business to more quickly recover the cost of capital investments, like the purchase of major equipment and machinery.
Thomas J. Gibson, president and CEO of AISI, said, "For capital intensive industries like steel, whose investments require significant expenditures, immediate or accelerated expensing has always been viewed as one of the most effective ways to spur real business investment and make U.S. manufacturing more competitive."
"The U.S. economy continues to underperform …at great cost to workers, businesses and taxpayers. Renewing bonus depreciation, and the comparable Alternative Minimum Tax credit in lieu of bonus depreciation, will provide an immediate incentive for businesses to make additional capital investments, thereby boosting the U.S. economy," the letter concluded.
