IPC announces member benefits to economic stimulus bill.February 18, 2009 -
According to IPC, members will benefit from bonus depreciation tax incentives, carryback of net operating losses, and other tax incentives in American Recovery and Reinvestment Plan. Anthony Hilvers of IPC stated that bonus depreciation permits businesses to recover cost of capital expenditures faster than ordinary depreciation schedule allows. Bill does not make Research and Experimentation Tax Credit permanent, Hilvers vowed that IPC and members will lobby to make tax credit permanent.
Economic Stimulus Bill Will Benefit IPC Members Immediately
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IPC-Association Connecting Electronics Industries
3000 Lakeside Drive
Bannockburn, IL, 60015
Press release date: February 16, 2009
IPC lobbying efforts pay off
BANNOCKBURN, Ill., USA, February 16, 2009 - IPC - Association Connecting Electronics Industries® has announced that its members will benefit from the bonus depreciation tax incentives, the carryback of net operating losses, and other tax incentives contained in the American Recovery and Reinvestment Plan, also known as the economic stimulus bill. The bill has passed through both chambers of Congress and is expected to be signed into law by the President. IPC lobbying efforts ensured that important provisions were not removed from the stimulus bill.
"Bonus depreciation tax incentives are extremely important to IPC members. Bonus depreciation permits businesses to recover the cost of capital expenditures faster than the ordinary depreciation schedule would allow," Anthony Hilvers, vice president of industry programs for IPC, explained. "In order to compete globally, the market demands that companies in the electronic interconnection industry continuously invest in capital equipment to remain competitive in producing state-of-the-art electronic products."
The five-year carryback of net operating losses for small businesses will assist eligible IPC members by helping them stabilize their finances. "The immediate infusion of cash as a result of this law will significantly help our members," said Ron Chamrin, manager of government relations for IPC.
Hilvers said the bill did not make permanent the Research and Experimentation (R & E) Tax Credit, which expires in 2009. "The R & E tax credit provides significant advantages to the entire electronic interconnection supply chain, but more and more printed board and EMS companies are realizing significant savings through this tax credit." He vowed that IPC and its members would continue to lobby to make this tax credit permanent.
IPC will continue to pressure Congress to enact measures assisting IPC members through the economic downturn. For more information on actions industry members can take to ensure that their companies are not put in a competitive disadvantage, visit www.ipc.org/getinvolved.
For more information on IPC's government relations activities, contact Ron Chamrin, IPC manager of government relations, at +1 703-522-0225 or RonChamrin@ipc.org.
IPC (www.IPC.org) is a global trade association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 2,700 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $1.7 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Garden Grove, Calif.; Stockholm, Sweden; and Shanghai and Shenzhen, China.