Coalition  Urges  Congress  to  Make  Bonus  Depreciation  Permanent      October  15,  2015    Dear  Senator/Representative      In  2008,  a  bipartisan  Congress  tried  to  jumpstart  an  ailing  economy  by  implementing  an  important  pro-­‐growth  tax  relief  program  known  as  accelerated  expensing,  or  “bonus  depreciation.”    This  makes  it  easier  for  companies  to  write  off  expenses  more  quickly  than  they  had  previously  been  able  to  –  letting  the  company  account  for  all  or  a  share  depreciation  in  the  first  year  of  a  capital  expenditure,  rather  than  amortizing  it  over  several  years.    Fundamental  tax  reform  that  includes  full  business  expensing  remains  a  top  priority.    But  for  the  here  and  now,  this  program  has  been  a  success.    Congress  has  renewed  it  every  two  years—until  this  year.    We  urge  you  to  support  the  current  legislation,  H.R.  2510  introduced  by  Rep.  Pat  Tiberi  (R-­‐Ohio)  and  S  1660  introduced  by  Sen.  Pat  Roberts  (R-­‐Kansas),  would  make  permanent  the  extension  of  accelerated  expensing.    This  legislation  is  an  important  pillar  of  a  pro-­‐growth  tax  reform  agenda  that  will  create  jobs  and  incent  greater  investment  in  infrastructure  throughout  our  economy        Bonus  depreciation  encourages  investment.  Accelerated  expensing  gives  businesses  the  certainty  they  need  to  spend  money  on  capital  expenditures  in  an  uncertain  economic  environment.  A  recent  study  out  of  Harvard  and  the  University  of  Chicago  found  that  50  percent  expensing  raises  investment  appreciably;  sometimes  up  to  30  percent  over  a  given  time  period.  This  makes  sense:  where  normal  depreciation  schedules  allow  the  company  to  depreciate  the  value  of  an  investment  over  the  course  of  the  decade,  this  legislation  allows  companies  to  take  that  tax  write  off  more  quickly,  reducing  the  stated  value  of  the  capital  expenditure.  By  guaranteeing  that  companies  can  write  off  the  value  of  an  investment  sooner,  bonus  depreciation  legislation  encourages  companies  to  get  those  investments  done  quicker.        Bonus  depreciation  builds  the  economy  and  creates  jobs.  Capital  investment  contributes  to  economic  growth  both  directly  and  indirectly.  When  companies  spend  money  on  capital  purchases,  they  not  only  benefit  the  recipient  of  the  sale;  they  also  create  jobs,  stimulate  local  economies  and  unleash  the  power  of  the  multiplier  effect.  That  money  goes  not  just  to  contractors  involved  in  the  project,  but  is  also  circulated  throughout  the  local  economy  as  those  contractors  hire  local  workers  and  subcontractors,  who  then  spend  that  money  on  local  goods  and  services,  and  the  cycle  continues.          Bonus  depreciation  moves  toward  fundamental  tax  reform.  “Full  business  expensing”  

is  a  cornerstone  of  pro-­‐growth  tax  reform.  Bonus  depreciation  moves  the  current  tax  system  more  than  halfway  to  full  business  expensing.  Making  bonus  depreciation  permanent  would  be  a  massive  victory  and  big  step  forward  towards  meaningful  tax  reform  that  will  help  American  businesses  compete  in  the  face  of  an  increasingly  difficult  regulatory  environment  here  at  home,  and  the  incredibly  competitive  global  marketplace.        Growing  our  economy  is  the  only  way  to  create  jobs,  pay  down  the  debt  and  ensure  our  nation’s  long  term  financial  security.        Permanently  extending  the  benefits  of  bonus  depreciation  will  encourage  investment,  build  the  economy  and  create  jobs.  We  hope  you  support  permanent  extension.  At  the  very  least,  it’s  crucial  to  support  S.  1666,  the  2-­‐year  extension  of  the  50  percent  expensing  bill  introduced  by  Sens.  Debbie  Stabenow  (D-­‐Mich.)  and  Pat  Roberts,  which  will  continue  our  nation's  forward-­‐looking  policies  that  encourage  investment  in  new  jobs  and  equipment.        Sincerely,      David  Williams  President  Taxpayers  Protection  Alliance    Seton  Motley  President  Less  Government    Karen  Kerrigan  President  &  CEO  Small  Business  Entrepreneurship  Council    Jeff  Mazzella  President  Center  for  Individual  Freedom    Andrew  Moylan  Executive  Director  and  Senior  Fellow  R  Street  Institute    Norm  Singleton  Senior  Vice  President  Campaign  for  Liberty        

Brent  Gardner  Vice  President  of  Government  Affairs  Americans  for  Prosperity    Matthew  Kandrach  Vice  President  60  Plus  Association    Iain  Murray  Vice  President  Competitive  Enterprise  Institute        Brandon  Arnold  Executive  Vice  President  National  Taxpayers  Union    Andrew  Langer  President  Institute  for  Liberty    Andresen  Blom  Executive  Director  Grassroot  Hawaii  Action      

Gregory  T.  Angelo  President  Log  Cabin  Republicans    Mario  Lopez  President  Hispanic  Leadership  Fund    George  Landrith  President  Frontiers  of  Freedom      

Thomas  Schatz  President  Council  for  Citizens  Against  Government  Waste    Matt  Schlapp  Chairman  American  Conservative  Union    Dan  Schneider  Executive  Director  American  Conservative  Union