NGA Backs 100% Bonus Depreciation, WOTC Extension
The National Grocers Association (NGA) is encouraging Congress to support the inclusion of the 100 percent bonus depreciation and the Work Opportunity Tax Credit (WOTC) in the payroll reduction legislation currently under consideration.
“These two provisions are extremely important to our members in expanding growth of their businesses and hiring new employees,” explained Peter Larkin, president and CEO of the Arlington, Va.-based trade organization. “These provisions have had strong bipartisan support and would provide certainty now to community-focused businesses and the timely incentives needed to generate continued investment and hiring of employees during the next 10 months, rather than at the end of the year.”
Larkin expressed his views in a letter sent members of Congress this week requesting their support as they debate the provisions of compromise legislation on the issues. While various tax provisions expired in 2011, Larkin said that without the particular provisions mentioned in the letter, employers are reluctant to plan, invest and hire.
The 100 percent bonus depreciation in 2011 spurred retail grocers, wholesalers and other businesses to invest in equipment for remodels and expansion. As a result, it created jobs not just for retailers and wholesalers, but also for the manufacturers and suppliers that produce and install the equipment. In the case of independent retail grocers and wholesalers, most of those investments benefit local community businesses.
The WOTC has encouraged employers to hire employees, particularly veterans, and other people in special-needs categories and who need training. Last year, WOTC placements reached an all-time high of 1.2 million jobs, up 23 percent from 2010. Deferring the extension of the WOTC for as much as 10 months will have adverse employment consequences for those currently without jobs who are seeking to return to work, according to NGA.