President Bush's jobs and economic growth tax relief bill approved by the United States Congress contains a new 50% expensing allowance for machine tools and other equipment ordered between May 6, 2003 and Dec 31, 2004, and placed in service by Dec 31, 2004. This replaces the temporary 30% allowance enacted in 2002.
House Ways and Means Committee Chairman Bill Thomas (R-CA) and Senate Finance Committee Chairman Chuck Grassley (R-IA) and Reps Jerry Weller (R-IL) and Phil English (R-PA) were leaders in the effort to enact the new allowance. It is part of a $350 billion, 10-year jobs and economic growth tax cut that also quadruples the $25,000 small-business expensing allowance (Sec 179) through 2005, cuts the individual tax rate for dividends and capital gains to 15% (5% for low brackets) through 2008, advances the effective dates of the 2001 individual rate cuts and credits to 2003, and provides $20 billion in aid to state and local governments.
Albert W Moore, president of the Association for Manufacturing Technology, congratulated Bush and Republicans in Congress for enacting a jobs and economic growth bill that provides real upfront stimulus for America's lagging manufacturing economy.
“The 50% expensing allowance for all manufacturers, coupled with the $100,000 expensing allowance for small business, will prove a real boost for our members and their workers, and for their customers and their workers,” Moore said.