Congressman Garamendi Introduces Legislation Mirroring President Obama’s Proposal to Allow American Businesses to Write-Off Jobs-Creating Capital Improvement Costs
WASHINGTON, DC – Congressman John Garamendi (D-Walnut Creek, CA) today introduced legislation along the lines of President Barack Obama’s call to offer tax incentives to American companies looking to invest in jobs-creating capital improvements. Garamendi’s, legislation, H.R. 6126, would allow all businesses, excluding real estate, to write-off 100 percent of all capital improvements purchased from September 8, 2010, the day President Obama announced the plan in Cleveland, to December 31, 2011.
"If you own a business in this country, and you’ve been thinking about broadband installation, machine tools, or a new production line, with this legislation, now’s the time," Congressman Garamendi said. "By allowing corporations to write-off 100 percent of all capital investments through 2011, we can create a chain reaction of job creation. Businesses with write-offs can expand and hire new workers by purchasing equipment made by businesses that can expand and hire new workers – a perfect synergy for economic growth."
Specifically, the bill would amend Section 179 of the Internal Revenue Code of 1986 by allowing businesses to deduct 100 percent of the cost of qualifying capital equipment placed in service on or after September 8, 2010, and before January 1, 2012. This is double the amount allowed in the Small Business Jobs and Credit Act of 2010 (H.R. 5297), which has passed the House and is currently before the Senate.
Last week, President Obama also called for an expanded research and development tax credit and an additional $50 billion investment in transportation infrastructure, policies also supported by Garamendi. Earlier this week, Congressman Garamendi explained why he supports the President’s infrastructure proposal in The Hill’s Congress Blog.
"We need to bring back American manufacturing, because if we don’t make it in America, we won’t make it in America," Congressman Garamendi added. "Democrats in this Congress are proposing a series of pro-manufacturing bills designed to restore America’s middle class. There is no magic bullet to job creation, but the legislation I introduced today is an important step forward."
Congressman Garamendi is the author of three additional Make it in America bills:
Buses, Rail Cars, Ferryboats: Make it in America Act of 2010 (H.R. 5791) would create American jobs by eliminating three waivers to the Buy America requirement and ensuring that taxpayer dollars are spent on American-made buses, rail cars, and ferryboats.
Manufacture Renewable Energy Systems: Make it in America Act of 2010 (H.R. 5792) would create American jobs by ensuring that taxpayer dollars are spent on American-made renewable energy systems, including solar, wind, geothermal, and biofuels.
Close Foreign Tax Loopholes: Make it in America Act of 2010 (H.R 5793), would have closed close to $15 billion in tax loopholes that encourage corporations to ship jobs overseas. The bill was based on language that appeared in previous legislation stalled in the Senate, but most of the loopholes were closed last month to pay for legislation that kept 161,000 teachers in the classroom while preserving funding for Medicaid/MediCal.
For more information on Congressman Garamendi’s Make it in America package, please visit: /sites/garamendi.house.gov/files/makeitinamerica.