IPC celebrates signing of R/D tax credits.
Press Release Summary:
December 29, 2010 - President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which reinstates research and development tax credits for 2010 and extends them through 2011. According to Anthony Hilvers, IPC VP of industry programs, R/D tax credits enable U.S. electronics companies to compete globally and remain profitable and viable. Tax Cuts Bill also provides 100% bonus depreciation for investments placed in service between Sept 8, 2010 and Dec 31, 2011.
Original Press Release
IPC Celebrates Signing of Research and Development Tax Credits and New Enhanced Bonus Depreciation Legislation
Press release date: December 27, 2010
The Tax Cuts Bill seamlessly reinstates research and development (R&D) tax credits for 2010 and extends them through 2011. Additionally, the bill provides 100-percent bonus depreciation for investments placed in service between September 8, 2010 and December 31, 2011.
According to Hilvers, R&D tax credits enable U.S. electronics companies to compete globally and remain profitable and viable. "The pace of technological advancements in the electronics industry is continuous and R&D is essential for companies to maintain the ability to produce state-of-the-art electronics products," adds Hilvers.
Throughout 2010, IPC had been urging members of Congress to enact legislation reinstating and permanently extending R&D tax credits. To amplify its efforts, IPC joined forces with the R&D Credit Coalition to urge Congress to pass the extension of tax provisions, including the R&D tax credit. IPC and its members met with legislators during events such as IPC Capitol Hill Day and at plant tours hosted by IPC-member facilities. IPC and its members also delivered letters to members of Congress urging them to enact legislation extending R&D tax credits through 2010 and for as long as possible.
The new enhanced bonus depreciation benefit expands the benefit from recovering 50 percent of the cost of capital expenditures to 100 percent for investments placed in service after September 8, 2010 and through December 31, 2011. For investments placed in service after December 31, 2011 and through December 31, 2012, the bill extends the previous 50-percent bonus depreciation.
IPC and its members have long advocated for enhanced bonus depreciation benefits to assist electronics companies. Due to rapid advances in electronics manufacturing, companies must continually invest in new equipment in order to remain competitive. "Bonus depreciation is especially helpful in tough economic times because businesses can continue to purchase new equipment and write off the investment at a faster rate," explains Hilvers. "The enactment of enhanced bonus depreciation helps companies purchase much needed equipment that will allow them to remain globally competitive."
For more information on the bonus appreciation tax incentives enacted by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, visit www.ipc.org/bonus-depreciation or contact Ron Chamrin, IPC manager of government relations, at RonChamrin@ipc.org or +1 703-522-3964.
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; Moscow, Russia; Bangalore, India; and Shanghai, Shenzhen and Beijing, China.