Legislative Bulletin - June 22, 2010

TRALA-Requested Extension of Bonus Depreciation Introduced in U.S. Senate

Federal legislation has been introduced that would extend the bonus depreciation provision contained in the American Recovery and Reinvestment Act of 2009 through the end of 2010. The legislation, S. 3513 is known as the “Bonus Depreciation Extension to Create Jobs Act.” Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) are sponsoring the bill. S. 3513 would accelerate depreciation of certain assets by allowing businesses to depreciate up to 50% of the cost of the asset in the first year it is placed in service.

TRALA has been a strong advocate for the extension of the bonus depreciation provision. In a letter sent in January 2010 to Chairman Baucus and Ranking Member Grassley, TRALA President & CEO Tom James urged an extension of bonus depreciation to help provide a needed jolt to the economy and to create new jobs. “Incentivizing the purchase of new trucks by lessors not only boosts truck manufacturing jobs, it benefits the broader business community that utilizes rented and leased vehicles to move their goods around the country,” James said.

In its letter, TRALA also emphasized the environmental benefits that would be advanced as the truck leasing community is able to increase its purchases of new 2010 commercial trucks due to a bonus depreciation extension. “Operating these new trucks will result in a more than 90% reduction in NOx and particulate matter emissions over trucks manufactured five years ago…Incentivizing the purchase of new 2010 trucks by TRALA members will not only create jobs…it will create “green” jobs and will accelerate the utilization of these new technologies and their environmental benefits,” said James.

To see a copy of TRALA’s letter to Chairman Baucus and Ranking Member Grassley urging the extension of the bonus depreciation provision, please click here. A copy of S. 3513 can be seen here. For further information, please contact TRALA’s Joe Sculley at jsculley@trala.org or by calling (703) 299-9120.