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Oct 4, 2010 12:00 AM
Printing Industries of America (PIA) supported the provision to extend bonus depreciation and increase small business expensing, recently signed into law. PIA notes Global Printing CEO Jon Budington will take advantage of the new law, which he urged Congress to pass earlier this year in testimony before the U.S. House Small Business Committee.
President Obama signed into law the Small Business Bill H.R. 5297, which temporarily extends bonus depreciation and increases the small business expensing limit. Printers can take advantage of the 50% bonus depreciation deduction on new equipment purchased and placed in service in 2010. Also helpful to printers is the law's provision that increases the small business expensing limit to $500,000, its highest level ever. PIA pushed for the inclusion of these tax relief provisions.
In July, PIA and Global Printing CEO Jon Budington testified before the U.S. House Small Business Committee and urged Congress to pass pro-growth legislation. "Bonus depreciation is a winning proposition that our nation needs for economic recovery," said Budington. "By allowing Global to depreciate 50% of capital investments in the coming tax year, Congress reduces the up-front costs of those investments. As a result, bonus depreciation leaves Global with more cash resources for both investment and new jobs."
PIA reports the provision to increase small business expensing (Section 179) will allow printers to make immediate investments in their businesses. The law increases expensing limitations up to $500,000 and provides an increase in the phase-out threshold amount to $2 million for 2010 and 2011.
"Bonus depreciation and increased small business expensing are tools needed by printers and companies in a broad cross-section of industries to maintain viability, save jobs, and make investments," says PIA CEO Michael Makin. "These provisions are steps to relieve the current credit crunch, but access to credit will not matter if there is a lack of print customers. As long as uncertainty abounds regarding tax, health care, and regulatory policy, that uncertainty will continue to prevent a healthy recovery in our industry. Moving forward, Printing Industries would like Congress to consider making these provisions a permanent part of the tax code."