NEC Urges Congress to Consider Tax Provisions in Fiscal Cliff Talks
On Monday, the New England Council sent a letter to the members of the New England Congressional delegation advocating for consideration of important tax provisions during “fiscal cliff” discussions. Many of these tax provisions, some set to expire at the end of the year without Congressional action, impact the New England region and New England businesses. With this in mind, the New England Council urged the Congressional delegation to consider the importance of several key provisions:
R&D tax credit – The research and experimentation tax credit (better known as the R&D tax credit) is crucial for business to be able to invest and innovate and drives high-salaried employment ,
Active Financing Exception – The active financing exception helps ensure that American companies that earning certain types of banking or finance income in other countries, are not subject to U.S. tax until the funds are repatriated to the United States. This ensures that these companies can compete globally and grow jobs domestically
Bonus Depreciation Allowance – Depreciation allowance provisions allow a business to rapidly deduct its investments in new fixed assets and recover investment costs quickly. These provisions encourage businesses to invest capital and expand operations.
Capital Gains and Dividends Taxes – Finally, rates for capital gains and qualified dividends, currently set at 15 percent, are set to expire at the end of the year. Favorable tax rates for both capital gains and qualified dividends encourage investment in companies large and small and the New England Council supports the extension of these rates.
The Council has advocated in support of each of these various provisions in the past and will continue to support tax policies that support the economic prosperity of our region. Visit the Business Competitiveness page to learn more.