Martin Falbisoner
Associated Equipment Distributors (AED) has long advocated “for capital investment incentives in Washington.”Photo: Martin Falbisoner/Wikipedia Creative Commons License
Industry group Associated Equipment Distributors is applauding an Internal Revenue Service proposal to permit bonus depreciation of 100 percent through 2022 on certain classes of equipment.
“AED strongly supports 100 percent bonus depreciation and has a long track-record of advocating for capital investment incentives in Washington,” the association said in a recent news item on its website. “The Association was instrumental in ensuring that construction equipment distributors are able to take advantage of the tax law’s full expensing provision by successfully lobbying to remove ‘construction machinery and equipment’ from a carve-out prohibiting dealers with floor plan financing from utilizing bonus depreciation.”
The proposed changes to a section of the Internal Revenue Code would enable the bonus depreciation permitted under the Tax Cuts & Jobs Act’s enactment. Since the act was passed, the association has worked with the treasury department, Congress and the IRS “on the law’s implementation, which included urging relief for AED members that sell construction equipment and other machinery or vehicles, such as farm equipment and trucks, to utilize bonus depreciation,” the Sept. 24 news item said.
The proposal would give dealers that sell other types of vehicles and equipment, such as trucks and farm equipment, “greater flexibility to take advantage of bonus depreciation,” the AED says.
The AED cautions, however, that equipment dealers should consult with their accountants and tax lawyers to determine how the proposed regulations will affect their companies.
An international organization, AED represents more 500 companies involved in distributing, renting and supporting equipment used in such industries as agriculture, construction, mining, forestry, and power generation. For more information, visit http://aednet.org.