Investment Week 2015

Investment Week Highlights Need for More Manufacturing Investment for Economic Growth

Investment Incentives Header 11-24-14

The U.S. Economy is improving, but six years after the recession we are still seeing sluggish growth. While manufacturers are mostly upbeat about future demand and production, there are also persistent doubts about whether or not the economy is truly on a firm footing. Such uncertainties hold back greater investments in the economy.

Increased investment by the manufacturing sector will make a difference. A package of investment incentives that allow companies to immediately write-off at least 50 percent (or 100 percent for small businesses) of the cost of capital equipment and provide relief even for companies that continue to struggle, has made a difference in recent years. Unfortunately, these incentives expired at the end of 2014. Reviving and extending these important provisions will promote the investment needed to get our economy into high gear.

Real World Impact

“The AMT money would be used for furnace upgrades, innovation around glass processing and new bottle technology, skilled workforce programs. Planning a year, or in many cases many years in advance, is critical to manufacturers. The uncertainty of the extenders makes it harder to justify spends around programs that rely on Congress acting in a timely manner.”Ryan Modlin, Vice President, North American Government Affairs, Owens-Illinois

Expired Tax Provisions: Left Hanging...

“Two that are out there and glaring for their absence this year Section 179 and bonus depreciation both of those create incentives for our customers to invest in our products. Customers are… left hanging by having incentives taken away from them with the idea some day tax reform will fix them.”
John Rauber, Director, Washington Affairs, Deere & Company

The Real Impact of On-again, Off-again Tax Policies

“We frequently don’t know the rules we’ve been playing by until the end of the year.”
Rich Gimmel, Chairman, Atlas Machine & Supply, Inc.

Understand the Issue

The Census Bureau reported that new durable goods orders fell 2.0 percent in August, essentially offsetting the 1.9 percent increase in July. On a year-over-year basis, new orders have fallen 2.3 percent, highlighting the challenges faced by manufacturers over much of that time. In August, much of the decrease came from the transportation sector, with reduced demand for motor vehicles and parts and nondefense aircraft for the month. Excluding transportation, new orders for durable goods were unchanged in August.

Press Releases

  • 07/11/2014
    House Moves to Make Investment Incentive a Permanent Part of the Tax Code
    Washington, D.C., July 11, 2014 – National Association of Manufacturers NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman issued this statement after the House passed H.R. 4718, legislation to make permanent 50 percent expensing, also known as –bonus depreciation.