ELFA Commends Senate on international financing provision.
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Press Release Summary:
Senate action extending international tax provision for active financial services income for one year, until December 31 of 2010, was applauded by ELFA as helping maintain level playing field with foreign competitors. Ralph Petta, Interim President of ELFA, said "The active financing rule addresses concerns about US competitiveness and fairness by applying to our financial services companies the same general US rule that defers current US tax on other active trade or business income."
Original Press Release:
Equipment Leasing and Finance Association Commends Senate Action on International Financing Provision Statement by ELFA Interim President Ralph Petta March 10, 2010
Washington, DC - The Equipment Leasing and Finance Association (ELFA) released the following statement applauding Senate action today extending the international tax provision for active financial services income for one year until December 31, 2010. This provision was included in H.R. 4213 as a component of a series of tax provisions that had expired at the end of 2009.
Ralph Petta, Interim President, ELFA, said, "The active financing 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."
This extension benefits U.S. leasing companies as it maintains a level playing field with foreign competitors. For example, a multi-year equipment lease may run five to seven years and be priced to reflect the active financing provision in current law. Without this provision, U.S. lessors would need to charge a higher rent reflecting the increased tax cost that would arise. The expiration of this provision would have had serious competitive consequences and this action represents a strong commitment by the Congress to assist U.S. companies to compete in international markets."
About the ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $518 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing 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 600 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
