Accelerated depreciation has been sound economic and fiscal policy for decades, supporting investment in manufacturing assets and equipment here in the U.S. and the jobs that go with them. Bonus depreciation has supplemented accelerated depreciation for most of the last two decades, again spurring domestic investment. Yet tax proposals drafted in Congress three years ago proposed sharp reductions in accelerated depreciation and the termination of bonus depreciation, undoing decades of successful tax policy that promoted domestic investment and job-creation through rapid cost recovery.
Renewed tax reform efforts in the Senate Finance Committee and House Ways and Means Committee this year and coming years will likely build on the past work of the committees. The CRANE coalition was created to make sure Congress hears from the business community that preserving and improving accelerated depreciation and bonus depreciation are vital to provide the capital needed to continue driving America's economic growth and job creation here at home.
Lots of issue coalitions have emerged in Washington to respond to Congressional efforts to change features of the tax code such as the interest deduction, LIFO accounting, lower tax rate on dividends, like-kind exchanges, and others. But CRANE members believed there was a gap in the debate due to a lack of voices advocating for rapid depreciation, which has been national tax policy for decades and has consistently attracted wide bipartisan support. CRANE was established to make the voices of its members heard alongside coalitions focused on other aspects of comprehensive tax reform and to make the case that proposals like lowering the corporate tax rate should go hand-in-hand with ensuring a robust system of cost recovery that supports domestic capital investment.
Role of New Members of CRANE
Membership in CRANE is open to trade associations and companies that are supportive of preserving and improving accelerated depreciation and bonus depreciation. New members can join CRANE either as regular members or steering committee members. Please see the contact page for more information.