ELFA supports investment incentives in year-end tax bill.

Press Release Summary:



According to statement made by William G. Sutton, ELFA CAE, President, and CEO, ELFA commends inclusion of the full 100% expensing for qualified capital investments, including investments in plants and equipment, for 2011 and 50% deduction for 2012 as key component of year-end tax package between the President and congressional negotiators. In addition, ELFA applauds extension of the international tax provision for active financial services income for 2 years through December 31, 2011.



Original Press Release:



ELFA Commends Inclusion of Major Investment Incentives for Plants and Equipment in Year-End Tax Bill



Washington, D.C. - William G. Sutton, CAE, President and CEO of the Equipment Leasing and Finance Association (ELFA), released the following statement regarding the year-end tax bill that is scheduled for a vote in the Senate later today:

"ELFA commends the inclusion of the full 100% expensing for qualified capital investments, including investments in plants and equipment, for 2011 and a 50% deduction for 2012 as a key component of the year-end tax package between the President and congressional negotiators.

"ELFA has consistently supported the use of capital formation tax incentives that focus on the need to invest in plants and equipment as a key component of economic growth and competitiveness. This provision allowing the full deduction - without monetary limitations - of qualified capital investments through 2011 and the 50% bonus depreciation level for 2012 is a major step in that direction.

"In addition, ELFA applauds the extension of the international tax provision for active financial services income for two years through December 31, 2011. This provision expired at the end of 2009.

"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 continue to 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.

"The ELFA and its member companies support proposals and tax incentives for both large and small businesses designed to provide a much needed economic stimulus to the economy. These incentives spur investment in plant and equipment, which is a key driver in capital formation, economic growth, and productivity."

About the ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $521 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. In 2011, ELFA is celebrating 50 years of equipping business for success. For more information, please visit www.elfaonline.org.

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