Equipment Finance Sector applauds passage of EESA 2008.
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Press Release Summary:
According to Kenneth E. Bentsen, Jr., President of ELFA, Emergency Economic Stabilization Act of 2008 will help restore confidence in capital markets and provide liquidity to credit markets while providing adequate protection for U.S. taxpayers. ELFA also lauded several additional key measures in bill including extension of renewable tax credits for energy and provision for active financial services income.
Original Press Release:
Equipment Finance Sector Applauds Passage of EESA 2008
Statement on Passage of the EMERGENCY ECONOMIC STABILIZATION ACT OF 2008
Equipment Leasing and Finance Association
President Kenneth E. Bentsen, Jr.
October 3, 2008
The Equipment Leasing and Finance Association (ELFA) applauds final congressional action on the EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 (H.R. 1424). "We believe this critical legislation will help restore confidence in the capital markets and provide liquidity to the credit markets while providing adequate protection for U.S. taxpayers," said Kenneth E. Bentsen, Jr., President of the Equipment Leasing and Finance Association.
"We appreciate the efforts undertaken by the Congress which should help to restore order and the flow of capital in the markets, while providing sufficient oversight and protections for the taxpayers," said Bentsen.
ELFA also lauded several additional key measures in the bill including the extension of renewable tax credits for energy and a provision for active financial services income.
Renewable Energy: The extension of the renewable solar, wind and geothermal energy tax credits will enhance the ability of the equipment finance industry to spur development and investment in this high growth arena. ELFA has advocated for a multi year extension of the renewable energy production tax credits and the renewable energy investment tax credits as a crucial federal commitment to these clean energy technologies. These federal tax incentives go directly to developers and owners of renewable energy projects including financing parties in certain cases. The equipment attributes of solar projects are particularly suitable for leasing so the multi year extension should be a major boon to the equipment finance industry. This legislation extends the 30% investment tax credit (ITC) for commercial solar for eight years until December 31, 2016 and extends the placed in service date for the production tax credits (PTCs) for solar and geothermal through December 31, 2010 and wind through December 31, 2009. These credits were scheduled to expire on December 31, 2008.
Active Financing: The Equipment Leasing and Finance Association applauds congressional action extending for one year until December 31, 2009 the Subpart F provision for active financial services income. This rule addresses concerns about U.S. competitiveness and fairness by applying to our financial services companies the same general U.S. rule that defers current U.S. tax on other active trade or business income. Like their foreign-based competitors, our financial services firms -including manufacturers and leasing companies - will only pay a current tax in the country where their foreign operations are located.
About ELFA
The Equipment Leasing and Finance Association is the trade association that represents companies in the $650 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing investment in capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its over 700 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. For more information, please visit www.elfaonline.org
