MCLEAN, VA—The new tax relief bill contains a 50 percent expensing allowance for machine tools and other equipment ordered between May 6, 2003 and Dec. 31, 2004, and placed in service by Dec. 31, 2004.
The bill is part of a $350 billion, 10-year jobs and economic growth tax cut. The Association for Manufacturing Technology (AMT) believes it will add more jobs by enabling manufacturers to more rapidly improve their productivity.
The bill also quadruples the $25,000 small business expensing allowance through 2005; cuts the individual tax rate for dividends and capital gains to 15 percent through 2008; advances the effective dates of the 2001 individual rates cuts and credits to 2003; and provides $20 billion in aid to state and local governments.
“The 50 percent expensing allowance for all manufacturers, coupled with the $100,000 expensing allowance for small business, will be a real boost for our members and their workers, and for their customers and their workers,” says Albert W. Moore, president of AMT.