Congressman McGovern Calls For Swift Passage of Business Equipment Tax Break

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."

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