Association of Equipment Manufacturers Calls on Congress to Reinstate Bonus Depreciation

The Association of Equipment Manufacturers (AEM) is calling on Congress to reinstate a 50 percent bonus depreciation program that it claims has helped equipment manufacturers survive during the slowdown in the economy last year. In a statement, the AEM says the bonus depreciation was seen by their members as an effective economic stimulus tool.

The bonus depreciation provision allows businesses to deduct 50 percent of the cost of new equipment in the year it is placed in service. The provision was included in the Economic Stimulus Act in early 2008 and extended to 2009 by the American Recovery and Reinvestment Act.

“Given the sluggish pace of the economic recovery, AEM strongly encourages Congress to use this proven, effective, pro-growth policy and extend the bonus depreciation benefits for small businesses,” says Dannie Slater, AEM president in a release.

Slater noted that the economic slowdown resulted in the loss of 37 percent of the workforce in the equipment industry. Further, these same companies reported sales declined by 50 percent between Jan. 2007-Sept. 2009.
AEM submitted the comments in a letter to the House Committee on Small Business, which held a hearing on “Bonus Depreciation: What it Means to Small Business.”