AICC AICC 40 Years

 
 

Legislative Updates

Articles

AICC Joins 528 Business Groups and Chambers in Advocating for Passage of Tax Extenders

AICC, The Independent Packaging Association, joined more than 500 associations, business advocacy groups and chambers of commerce across the country in calling on House and Senate leaders to pass a business tax extenders bill before the conclusion of this session of Congress.

In a letter sent on Tuesday, November 18, business groups urged the House and Senate tax-writing committees to work together “to extend seamlessly, enhance or make permanent the expired and expiring tax provisions." The letter went on to say, “These tax provisions are critically important to U.S. jobs and the broader economy.” To read the letter and see the co-signing organizations, click here or on the title above to read more.

IRS Issues Final Regulations on PPACA's Employer Mandate

On Feb. 10, 2014, the IRS issued much-anticipated guidance - in the form of final regulations - relating to PPACA's employer mandate. The final regulations reiterate much of the guidance published in the Dec. 27, 2012, proposed regulations, but add some very important clarifications. Below is a summary of the most important changes. Click on the title above to read more.


Position Papers

Boiler Maximum Achievable Control Technology and Non-Hazardous Secondary Materials Regulations

Research and Development Tax Credit

Free Trade Agreements

Accelerated Depreciation

Topic: Boiler Maximum Achievable Control Technology and Non-Hazardous Secondary Materials Regulations

Download Boiler Maximum Position Paper

Topic Brief

Recently the Environmental Protection Agency enacted regulations to decrease greenhouse gas emissions by targeting industrial boilers. AICC stands in firm support of the goal of protecting our environment: 64% of the energy used in containerboard mills is generated by biomass combustion, which significantly reduces the carbon dioxide emissions from what they would have been had they only used fossil fuels. In addition, 78% of U.S. corrugated shipments are reclaimed and recycled. However, the standards enacted by the Boiler MACT regulations are impractical for most businesses to carry out. It is estimated the regulations will cost $14 billion to implement and cost approximately 200,000 jobs as businesses are forced to cut back or even shut down in order to meet the E.P.A. standards. The E.P.A. has since reconsidered this regulation and has implemented an administrative delay while it collects information on the potential impacts of these regulations. The House of Representatives is currently considering a bill for the E.P.A. to develop new standards that make taking such steps for the environment plausible. AICC urges Congress to look carefully at these laws to develop regulations that strike a better balance between environmental responsibility and economic practicality.

Legislative Proposals

H.R. 2250: "E.P.A. Regulatory Relief Act", to provide additional time for the Administrator of the Environmental Protection Agency to issue achievable standards for industrial, commercial, and institutional boilers, process heaters, and incinerators.

Introduced: June 21, 2011

Sponsor: Morgan Griffith (R- Va.)

49 bipartisan cosponsors

Referred to House Committee on Energy and Commerce

Topic: Research and Development Tax Credit

Download Research and Development Tax Credit Position Paper

Topic Brief

The Research and Development Tax Credit is a tax break that has been temporarily extended fourteen times since 1981. Although this tax break is an excellent incentive for businesses, its status as a temporary benefit undercuts its desired effects. As long term planning is very important for businesses, it is difficult for the Research and Development Tax Credit to have its intended effect of encouraging economic growth and innovation if businesses cannot take it in to account for more than one year at a time. An investment of a few hundred thousand dollars is a multiple year project for small businesses. As such, AICC supports incorporating the Research and Development Tax Credit in to the tax code. This would encourage innovation, especially environmentally friendly improvements, by encouraging businesses to make investments knowing that the tax credit is not in jeopardy each year.

To better understand how this impacts businesses, we can look at the example of the small business owner who is trying to make his packaging more sustainable. Lighter weight packaging made of more environmentally friendly materials means less fuel needed for shipping and less material wasted. To research and develop the new packaging can cost upwards of several hundred thousand dollars. The research and development tax credit allows a business owner to write off the portion of his investment he makes that year, but as it stands there is no incentive to make any investment beyond that. So it doesn't encourage further investment by providing the advantage of a tax write off, it only provides a break for those who would have spent the money anyway. While that is a noble reward system, it does not have its desired effect of encouraging further investment. To really get the greatest return on our investment in our country, Congress should make the Research and Development tax credit a permanent part of our tax code.

Legislative Proposals

H.R. 1693: "Research and Development Tax Credit Extension Act of 2011", to make the Research and Development tax credit a part of American tax code.

Introduced: May 3, 2011

Sponsor: John Carney (D- Del.)

1 cosponsor

Referred to House Committee on Ways and Means

H.R. 942: "American Research and Competitiveness Act of 2011", to make the Research and Development tax credit a part of American tax code.

Introduced: March 8, 2011

Sponsor: Kevin Brady (R- Tex.)

32 bipartisan cosponsors

Referred to House Committee on Ways and Means

Topic: Free Trade Agreements

Download Free Trade Agreements Position Paper

Topic Brief

The Association of Independent Corrugated Converters supports the Free Trade agreements currently being considered. As an organization of independent manufacturers, AICC knows that the free trade agreements will be good for business and American jobs. America has trade surpluses with all of the countries with which it has free trade agreements, and trade deficits with those it doesn't. The proposed agreements with Panama, South Korea, and Colombia would each improve America's economy by giving us a more open market.

Free trade agreements, however, can cause an interim loss of American jobs. The North American Free Trade Agreement, for example, caused a net loss of 739,280 jobs. To rectify this, Trade Adjustment Assistance proposals have been introduced as a way to benefit the American economy without abandoning the American worker. AICC also supports this solution as part of Congress's approval of the Free Trade Agreements currently being considered.

Legislative Proposals

Status: negotiated, waiting on Congressional approval

U.S.-Korea Trade Agreement
Status: negotiated, waiting on Congressional approval

U.S.-Panama Trade Promotion Agreement
Status: negotiated, waiting on Congressional approval

Topic: Accelerated Depreciation

Download Accelerated Depreciation Position Paper

Topic Brief

Accelerated Depreciation, because of the "time value of money", is good for businesses. It encourages businesses to invest in new technology by making it more favorable economically for them to do so. Having up to date technology means a more efficient, more environmentally friendly business that will help America to compete in the global marketplace. In 2010 Congress and President Obama extended accelerated depreciation with the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This legislation provides 100 percent depreciation bonus for capital investments placed in service after September 8, 2010 through December 31, 2011. For equipment placed in service after December 31, 2011 and through December 31, 2012, the bill provides for 50 percent depreciation bonus. The Association of Independent Corrugated Converters encourages Congress to continue its support of accelerated depreciation as an economic stimulus.

Legislative Proposals

There are no proposed bills on this topic at this time.
© 2015 Copyright Association of Independent Corrugated Converters. All Rights Reserved