Congressman McGovern Calls For Swift Passage of Business Equipment Tax Break

Washington, DC, September 9, 2010

U.S. Rep. Jim McGovern (D-MA) today commended President Obama for proposing a significant tax break for U.S. businesses on equipment purchases and urged the leadership of the House and Senate to take the measure up quickly.

-I've talked to many, many small business owners who are eager to purchase new equipment,- Rep. McGovern said. -I believe that giving these entrepreneurs some tax relief is the right thing to do. When Congress returns from the August recess, I will urge the House Leadership to bring this important issue to the floor.-

President Obama's proposal would allow businesses to fully deduct qualified capital investments through the end of 2011. Currently, businesses write off depreciation of their equipment purchases over the -life-span- of that equipment. Under the plan supported by Rep. McGovern, businesses would be able to take the full deduction right away.

-This tax relief would put nearly $200 billion into the hands of businesses over the next two years,- Rep. McGovern said. -Using that money to invest in new equipment would spur economic growth and create new jobs. It's the right thing to do.-