APRA President Testifies on Capitol Hill for Tax Credit
Fairfax, VA- William Gager, Automotive Parts Rebuilders Association (APRA) president, urged the House-Senate Joint Committee on Small Business to support tax relief for the remanufacturing industry. In a prepared statement to the committee, Mr. Gager called on the 107th Congress to pass a 20 percent tax credit on remanufacturing equipment purchases and to pressure the Internal Revenue Service into cooperating more readily with the industry in tax simplification and core valuation issues. Mr. Gager submitted written comments to the committee and participated in a roundtable discussion with leaders of several other industries and business organizations.
Rep. Donald Manzullo (R-IL), who co-chaired the roundtable discussion, has introduced H.R. 1037, the Small Business Employers Tax Relief Act. Included in H.R. 1037 is the language from last year's remanufacturing tax credit legislation, submitted by Representatives Phil English (R-PA) and John Tanner (D-TN), that called for a 20 percent tax credit on the purchase of equipment used in metals recycling, core suppliers and remanufacturing. Mr. Gager praised Rep. Manzullo and also Representative Nydia Valezquez (D-NY) for including the remanufacturing tax credit in their jointly sponsored bill.
The overall bill is divided into four sections: tax relief, tax relief for environmental protection, tax simplification and taxpayer protection. The remanufacturing portion of the bill is listed under the environmental segment, in Section 202.
Mr. Gager also took the opportunity to ask for congressional assistance in dealing with the Internal Revenue Service. "The remanufacturing industry has not found the Internal Revenue Service receptive to working with it to resolve tax issues of concern," said Mr. Gager. Of particular concern to the automotive parts rebuilders community is the valuation of cores for tax purposes.
A variety of tax-related issues were discussed during the roundtable, including the controversial death tax and the Alternative Minimum Tax. The subject of the death tax unleashed a particularly lively exchange between supporters of President Bush's tax plan which calls for the abolition of the estate tax over 10 years and those who believe the dreaded tax should be abolished much sooner.
"It was a productive meeting," said Mr. Gager of the roundtable event. "It's important that we all take whatever opportunities we can to educate our leaders about our remanufacturing industry. Such efforts will most certainly payoff."
Mr. Gager is optimistic that remanufacturing tax relief will pass in the 107th Congress. "The groundwork was effectively laid last year, and there's broad support this year for small business tax cuts in general. So long as our members keep in touch with their representatives in Congress, we will be in great shape."
APRA members are encouraged to contact their member of the House or Representatives, and urge him/her to co-sponsor HR 1037, the Small Employers Tax Relief Act.
For more information on HR 1037 and APRA's efforts to achieve remanu-facturing industry tax relief, visit the Remanufacturing Tax Credit Center at www.reman.org/tax_credit_center.htm.