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The North American Equipment Dealers Association (NAEDA) and its affiliated associations are committed to helping dealers succeed.
A new monitoring program overseen by USDA’s Animal and Plant Health Inspection Service (APHIS) is up and running, and officials will use it to keep an eye on the potential spread of highly pathogenic avian influenza (HPAI) this fall. The plan is an interagency effort to collect samples from wildfowl to see if the disease is present in “apparently healthy birds,” primarily dabbling ducks like the American black duck, American green-winged teal, mallard, and Northern pintail. Samples are being obtained mostly through live capture or hunter-harvested birds, but samples are also being taken from other waterfowl as well as any dead birds that come to researchers’ attention.
The polling period for NAEDA’s first national election is over and we are extremely pleased with the level of participation. Thank you for taking the time to cast your vote as it is greatly appreciated! We are currently tabulating the results and anticipate announcing the winners by the end of the week. The voting process did present some challenges. Most importantly, it exposed a need to enhance our member database as we discovered incorrect contact names and/or email addresses. NAEDA staff worked directly with members and regional association executives to address each situation individually and as a result, every member who expressed an interest in voting should have been able to cast a vote. Regardless of the challenges encountered with this first effort, we remain confident in the results. We utilized every means possible to promote the election and each ballot was individually checked to confirm its validity. Every effort was taken to ensure the sanctity of this year’s election and each opportunity to improve the process for next year’s election will be implemented. Again, thank you for participating in NAEDA’s first national election and thank you for being a valued member of NAEDA!
NAEDA’s VP of Government Relations, Natalie Higgins, met with Representative Rod Blum’s (IA) office in early July to discuss Rep. Blum’s efforts to increase the de minimis safe harbor from $500 to $2,500 per invoice or item. Current IRS regulations provide a $5,000 de minimis safe harbor deduction for capital expenditures provided that the taxpayers maintain and file specific financial documents, typically an audited financial statement. Many of NAEDA’s members do not need to file the applicable financial statements given the structure of their businesses. For those businesses, the IRS only provides a de minimis safe harbor of only $500 per invoice or item. NAEDA does not believe that its members or it’s member’s customers should have to bear an unnecessary accounting burden simply to qualify for a more reasonable exemption. Such costs are clearly incurred to keep equipment in an ordinarily efficient operating condition.
Rep. Blum has now officially introduced his proposed bill as House Resolution 3318. In order for this bill to gain the momentum it needs to succeed, Rep. Blum needs other lawmakers join him and co-sponsor the bill. NAEDA members are encouraged to reach out to their own Representatives and ask them to co-sponsor H.R. 3800. Dealers are asked to raise this issue as you come into contact with their congressional member while they are on their August recess.
Need help getting connected to your legislators? Call or email Natalie Higgins to get more information; (636) 349-6206 or email@example.com.
NAEDA in Action: Letter issued in support of proposed tax legislation which, if enacted, would allow taxpayers without certain financial statements to deduct up to $2,500 for equipment repairs.
Current IRS regulations provide a $5,000 de minimis safe harbor deduction for capital expenditures provided that the taxpayers maintain and file specific financial documents, typically an audited financial statement. Many of NAEDA’s members do not need to file the applicable financial statements given the structure of their businesses. For those businesses, the IRS only provides a de minimis safe harbor of only $500 per invoice or item. NAEDA does not believe that its members or it’s member’s customers should have to bear an unnecessary accounting burden simply to qualify for a more reasonable exemption. Such costs are clearly incurred to keep equipment in an ordinarily efficient operating condition.
NAEDA’s VP of Government Relations, Natalie Higgins, met with Representative Rod Blum’s (IA) office to discuss the measure earlier this month. After providing NAEDA’s feedback on the initial measure, NAEDA issued a letter in support of the proposed legislation. NAEDA’s letter expressed approval of Rep. Blum’s efforts to increase the de minimis safe harbor from $500 to $2,500 per invoice or item. For a full copy of the letter, click here.
Two Senate Finance Committee members introduced separate bonus depreciation bills the last week of June. Reinstating this capital investment incentive is one of NAEDA’s top tax priorities for this congress.
Sen. Pat Roberts (R-KS) unveiled a proposal to permanently reinstate 50% bonus depreciation (S.B. 1660), which is a companion bill to Rep. Pat Tiberi’s (R-OH) House bill, H.R. 2510. Sen. Debbie Stabenow (R-MI) has also introduced legislation (S.B. 1667) that would reinstate bonus depreciation for 2015 and 2016.
NAEDA is supporting both these bills and at the same time asking members of congress to also reinstate both bonus depreciation and increased Sec. 179 expensing levels immediately to incentivize equipment purchases throughout the year. Both provisions expired at the end of 2014.
Dealers are asked to contact your lawmakers to restore 50% bonus depreciation and higher Sec. 179 levels. Calls and contacts with your senators and representatives are needed to get these pieces of legislation moving forward. Remember that in August, congress will be on their summer recess and back in their home districts which will the perfect time to raise the need for passage of these bills.
Many thanks to members of Congress who supported the passage and signing into law the TPA legislation. Dealers if you have not done so, please take time to reach out and thank members of Congress who voted for the TPA bill. It is especially important that these members hear directly from their constituents in their states. Click here for every member of Congress who voted yes on TPA and the contact information for their relevant staff. Please be sure to send your thank yous to these groups. NAEDA, plans also to stay engaged over the weeks and months ahead as the TPP and other U.S. trade negotiations move forward.
Senate Finance Committee Chairman Orrin Hatch (R-UT) has appointed Working Groups to consider various elements of tax reform, and report back to the full Committee in May with policy recommendations. The Working Group on Business Tax Reform is co-chaired by Senators John Thune (R-SD) and Ben Cardin (D-MD). The LIFO Coalition, of which NAEDA is a member, briefed the staff of that Working Group on LIFO on March 13th, and provided them with a detailed Fact Sheet on LIFO. We also submitted a separate comment letter to the Working Group, responding to the broad principles for tax reform set out by Chairman Hatch. You can read the Coalition’s comment letter and attached fact sheet here: http://www.naw.org/files/LIFO-Letter.pdf
USDA recently released data showing the opportunities for agriculture of the Trans Pacific Partnership (TPP) to help boost agricultural exports across the 50 United States. TPP is a 21st century trade agreement that will promote job growth, increase farm income, generate greater rural economic activity, and help expand U.S. agricultural exports to some of the fastest growing countries in the Asia-Pacific region. USDA released its TPP data today after President Obama announced a set of new executive actions to help grow manufacturing in rural areas and to provide new markets to small businesses across our nation's heartland.
In the Oct. 13 issue of AEM’s Advisor News, Charlie O’Brien, AEM senior vice president and ag sector lead, discussed “10 reasons not to panic about the current drop in farm equipment sales.” While I do agree with many of his observations and reasons, I feel a need to respond from the dealer’s point of view.
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