Category Archives: Newsroom

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GAUGING GLOBAL GROWTH

AN UPDATE FOR 2015 & 2016

Weekly Economic Commentary

John Canally Chief Economic Strategist, LPL Financial

The outlook for global growth is important to investors, since it defines the ultimate pace of activity that creates value for countries, companies, and consumers. As investors digest the S&P 500 earnings reports for the fourth quarter of 2014, we provide an update on how consensus estimates for economic growth for 2015 and 2016 — in the United States and worldwide — have evolved over the past few years, and in particular, since oil prices peaked in mid-2014.

The International Monetary Fund (IMF) cut its global growth forecasts for both 2015 and 2016 last week (January 19 – 23, 2015). While the IMF raised its estimate for growth in 2015 for developed economies, all of the increase to that estimate came in the United States; the IMF lowered its estimates for all other developed economies, except the United Kingdom where 2015 growth estimates were unchanged. The IMF sharply lowered its 2015 growth estimate for emerging markets (EM), with oil-producing, EM nations like Russia, Saudi Arabia, Mexico, Brazil, Venezuela, and Nigeria seeing the largest markdowns in growth.
Typically, when the IMF releases a forecast, the majority of financial market participants
take little notice of the report, and that was generally the case last week, as markets
focused more on the price of oil and the European Central Bank (ECB), than on the IMF.

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Why? Because consensus forecasts for global gross domestic product (GDP) growth are available monthly from sources like Bloomberg News, and because markets constantly react to changes in projected paths of economic growth amid the daily, weekly, and monthly drumbeat of economic data and global events.

WHY GLOBAL GDP GROWTH MATTERS
In the past, prospects for U.S. economic growth garnered the most attention from market participants, but in recent years markets have focused more on the prospects for global GDP growth. Why does global GDP growth matter? As we have noted in prior Weekly Economic Commentaries, financial markets — especially equity markets — focus intently on earnings. Broadly speaking, earnings growth is driven by “top-line” growth, or revenue growth, less the costs incurred earning that revenue, with labor accounting for….

Read the Full Report here:Economic Commentary 01262015

Geiss Thermoforming USA

Advancing Plastic Thermoforming Technologies

Advancing plastic thermoforming technologies — Let’s shape up— Let’s shape up

By Don Rosato, Aldo Crugnola and Nick Schott

Wednesday, January 21, 2015

The thermoforming process typically consists of heating thermoplastic sheet, film or profile to its softening point and then forcing the hot, flexible material against the contours of a mold in three ways:

  • pneumatic means — differentials in air pressure are created by pulling a vacuum between the plastic and the mold, or the pressure of compressed air is used to force the material against the mold
  • mechanical means — plug, matched mold, etc.
  • a combination of pneumatic and mechanical means

Recent advances in thermoforming have come in both software and machinery. For example, injection molders are not the only plastic processors that can benefit from process simulation software. Accuform SRO has developed T-SIM, a thermoforming simulation software package. A consortium of 11 European thermoforming companies supported the development of the software.

Accuform SRO

T-SIM simulates positive or negative forming with or without plug assist. The software predicts the final wall thickness distribution based on the specified processing parameters (the pressure level, the speed of tools, the sheet temperature distribution, etc.). Time-dependent sheet sagging is included.

T-SIM is also able to predistort images for printing them on the flat sheet, so that once thermoformed, the images appear true. An image projection manager enables projection of multiple images using various projection methods (planar, cylindrical and spherical projection).

Let’s delve further starting with custom thermoformers like the Profile Plastics Corporation, who are specialists in heavy-gauge, custom-molded, highly engineered plastic parts manufactured via vacuum, pressure and twin-sheet thermoforming processes. The company has prospered for 50-plus years by steadily investing in and innovatively applying the latest technology.

Geiss thermoforming machine halogen heating element
Geiss Thermoforming USA

Geiss thermoforming machine halogen heating element.

Profile’s use and development of an unconventional vacuum-forming machine from Geiss Thermoforming USA is an example. The unit was one of the first halogen-heated, in-line closed-chamber-style machines in the U.S.

Profile specializes in large, technical parts for medical, analytical and electronic equipment, as well as appliances and materials-handling components. The acquisition of the Geiss machine with its halogen heating has helped Profile to maintain its momentum by extending its use of heat-sensitive materials.

Of the successive operations (clamping, heating, forming, cooling and trimming) carried out to produce a thermoformed part, heating appears to be the critical step. The sheet has to be evenly heated at the proper temperature.

Heating is conventionally performed by means of medium-wave (quartz) or long-wave (ceramic) radiators, but the Philips infrared halogen lamp is providing a great improvement in the heating process. For a given installed power, infrared halogen lamps are more efficient as they create a higher irradiance at a given distance from the plastic sheet, compared to both quartz and ceramic.

Although it takes minutes for quartz and ceramic radiators to reach their operating output, infrared halogen lamps (short wave emitter) only require a few seconds to get the same level of energy. Infrared halogen lamps also generally give a better temperature gradient over the plastic thickness. This is due to short wave radiation, a unique feature of infrared halogen lamps that has been shown to be more penetrating than long wave or even medium wave radiation.

Infrared halogen lamps can be instantly adjusted to the optimized heat level by simple dimming. Adaptation to various kinds of shapes and colors is not a problem. Infrared halogen lamps are 100 percent dimmable, which allows fine tuning of the process.

Profile’s goal is to thermoform parts equal to injection molding in look, quality and precision, while outdoing them in design ingenuity and economy. Such an objective was not feasible 20 years ago, as it was not possible to trim parts with precision equal to injection molding, and it was difficult to measure part dimensions to guarantee quality on a repeatable basis.

Multiaxis CNC routers provided a way to address trim-speed and precision, and Profile pioneered their use in thermoforming. All of Profile’s parts are now CNC-trimmed. Profile also addressed the need for precision measurement by investing in coordinate-measuring machines, computer-aided devices for measuring critical part parameters on a repeatable basis. The move allowed Profile to pursue more demanding applications.

Next, Berry Plastics Corporation’s original purchase of Landis Plastics Inc. has turned out over time to bring Berry a larger injection molding/packaging base. It also gave Berry Landis’ polypropylene (PP) thermoforming technology. Putting the companies together brought together Berry’s state-of-the-art technology for deep-draw, post-trim thermoforming and Landis’ PP trim-in-place thermoforming technology that is also state-of-the-art.

Within the plastics industry, it was believed that PP could not be drawn deeper than 4 inches, but Berry developed a new PP thermoform drink cup line that draws just over 8 inches deep, yielding drink cup sizes of 22-44 ounces.

Polypropylene drink cups.
Berry Plastics

A polypropylene drink cup that unlike other materials won’t crack, leak or break is attractive to consumers, while retailers are also interested in a value-added product that provides premium image potential yet is cost competitive with traditional plastic, paper and foam cups. Barry’s new technology provides the fountain industry with a drink cup that can be crushed and straightened out and will still hold liquid.

The new drink can also spell profits for retailers who have discovered that reusable polypropylene drink cups — viewed as premium products by consumers — are a cost-effective alternative to traditional paper, plastic or foam cup materials.

Other companies are thermoforming PP, too. PP is expected to grow 9.1 percent in thermoforming applications. Less than 100 million pounds of PP was used in thermoforming 10 years ago, and about 750 million pounds is expected to be used this year. By combining its deep-draw PP thermoformed product with PP trim-in-place thermoforming technology, Berry is advancing in all sorts of single-service products including ready-to-eat packages, salad packages and snack containers.

Finally, custom thermoformer, Kintz Plastics — a recognized leader in heavy-gauge thermoforming — offers three thermoforming processes:

  • vacuum forming (with design flexibility at reduced tooling costs)
  • pressforming (a cost-effective alternative to injection molding)
  • twin-sheet forming (which compares favorably to blow molding, in both function and cost).
Kintz Plastics Inc.

The company, which produces plastic parts for the medical, computer and transportation industries, has installed the largest thermoforming machine in North America. Partly customized in-house, the four-station rotary machine dubbed “jumbo” makes parts of up to 9-by-13-by-5 feet from a single sheet of plastic.

Kintz forms a full range of large parts with the machine, including products such as exterior vehicle panels, spas, pool stairs, office tabletops, kiosk and vending machine panels. Some captive thermoformers make parts of equal or larger size, such as truck bed and refrigerator liners.

The machine can be operated in vacuum, pressure or twin sheet modes. Kintz foresees considerable potential in large twin-sheet hollow parts, such as underground storm water drainage vessels.

Another market of significant interest to Kintz is unpainted decorative parts. This market segment is experiencing high growth utilizing Bayer MaterialScience’s and Sabic Innovative Plastics’ weatherable, high-gloss sheet products. These applications also benefit from a push to replace thermoset fiberglass composites in various recreational and agricultural vehicles, riding mowers, spas and showers, and also window and siding profiles.

About the Author

Don Rosato, Aldo Crugnola and Nick Schott

The Plastics Institute of America (PIA) at the University of Massachusetts Lowell is a not-for-profit educational and research organization dedicated to providing service to the plastics industries since 1961. The PIA is led by Prof.-Dr. Aldo Crugnola, executive director; Prof.-Dr. Nick Schott, secretary and director of educational programs; and Dr. Donald Rosato, publications chairman (pictured).

Article provided by MultiView

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DRILLING INTO THE LABOR MARKET

Weekly Economic Commentary

John Canally Chief Economic Strategist, LPL Financial

Last Friday, January 9, 2015, the United States Bureau of Labor Statistics (BLS) released its monthly Employment Situation report, providing financial markets and the public at large with the state of the labor market as 2014 ended. The U.S. economy created another 252,000 net new jobs in December 2014 and 3 million over the course of 2014. More net new jobs were added in 2014 than in any year since 1999 [Figure 1]. The unemployment rate fell to 5.6% in December 2014, the lowest reading since mid-2008.

Although the labor market has improved markedly over the past year or so, it still has a long way to go to get back to “normal,” and the Federal Reserve (Fed) is unlikely to begin raising rates until a broad range of labor market indicators are back to normal or on track to get back to normal. In our Outlook 2015: In Transit, we noted that Fed Chair Janet Yellen and the other members of the Federal Open Market Committee (FOMC) are tracking a “broad range” of labor market indicators. (See pages 10 – 11 of the Outlook for details.) Eleven of these indicators were updated with last Friday’s release, with six of them improving versus November 2014, four deteriorating, and one remaining the same.

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In an otherwise solid report, one of the big disappointments was the deceleration in wage growth as measured by the year-over-year change in average hourly earnings. Hourly earnings decelerated from 1.9% year over year in…

Read the Full Report here: Economic Commentary 01122015

Consumer discretionary (CD) Sector historically has benefited from big drops in oil.

THE BRIGHT SIDE OF CHEAP OIL

Weekly Market Commentary

Burt White Chief Investment Officer, LPL Financial
Jeff Buchbinder, CFA Market Strategist, LPL Financial

Earnings season is here and, as we wrote in our earnings preview last week (“A Tale of Two Earnings Seasons”), low oil prices and the energy sector will be the market’s main focus. Energy companies begin to report earnings this week, as energy services provider Schlumberger releases results on Thursday, January 15, 2015, although most of the sector’s results will come the last week of January and first week of February. While we try to gauge the energy sector outlook, we will also pay close attention to sectors and industries that potentially benefit the most from cheap oil, particularly in the consumer discretionary sector and the transportation industry, or the transports. (This week’s Weekly Economic Commentary, “Drilling into the Labor Market,” discusses energy’s impact on U.S. and state economies and labor markets.)

Depending on your assumptions, savings for the average American
from lower energy prices could reasonably be estimated at
over $1,000 per year.

IT STARTS WITH THE CONSUMER

The obvious place to start when analyzing beneficiaries of cheap oil is the consumer discretionary sector. The “tax cut” from lower prices at the pump is significant. U.S. consumers purchase about 140 billion gallons of gas annually, so a $1.00 drop in gasoline is a net savings of $140 billion (or about 1% of gross domestic product [GDP]). Each household that has been spending about $2,500 per year on gasoline (roughly the national average) will see a drop of perhaps $600 annually, based on U.S. Energy Information Administration (EIA) forecasts. For someone making the median income in the United States (about $52,000), that’s almost an extra week’s paycheck. And the total does not include home heating costs, where additional savings are captured, as the decline came just ahead of the coldest winter months (the sharp drop in natural gas prices is also helping). Depending on your assumptions, savings for the average American from lower energy prices could reasonably be estimated at over $1,000 per year, which for many, is like getting a raise. Keep in mind the consumer represents two-thirds of the U.S. economy.

Read Full Report here: Market Commentary 01122015

Consumer discretionary (CD) Sector historically has benefited from big drops in oil.
Consumer discretionary (CD) Sector historically has benefited from big drops in oil.
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MDNA News Magazine

Read the Fall edition of the MDNA News Magazine online here! Highlights inside the latest issue include: Austin D. Lucas Scholarship Winners/ Recipients, MDNA Convention, NEW Members and More…

 

Read the 2017 Summer edition of the MDNA News Magazine online here!  Published by the Machinery Dealers National Association . Highlights In this edition: Weekend With The Pros, Chapter News, New Board of Directors, MDNA Board Report Highlights, New Members…

 

Read the 2017 Winter edition of the MDNA News Magazine online here! Highlights inside the latest issue include: MDNA Convention, MDNA Board Report, NEW Members, AMEA Staff Change and AMEA appraisers Forum!

  Read the 2016 Fall Edition of the MDNA News Magazine online here! Highlights inside the latest issue include: Austin D. Lucas Scholarship Winners/ Recipients, MDNA Convention, NEW Members and More…

  Read the 2016 Summer Edition of the MDNA News Magazine online here! Highlights inside the latest issue include: Chapter News, MDNA Convention Coverage, MDNA Board Report, NEW Members and More…

   Read the 2016 Winter edition of the MDNA News Magazine online here! Highlights inside the latest issue include: Section 179, Chapter News, Cover Story, MDNA Convention, New Educational Program, MDNA Board Report, NEW Members

    The 2015 FALL edition of the MDNA News has been published! IN THIS ISSUE: Austin D. Lucas Scholarship Trust Recipients Awarded, MDNA 2016 Convention, Weekend With The Pros Re-Cap, The Golden Years and more…

  The 2015 SUMMER edition of the MDNA News has been published! IN THIS ISSUE: THE NEW BOARD, COVER STORY- THE YEAR OF WOMEN IN MACHINERY, SPONSORS, NEW MEMBERS AND MORE….

inc500 (2) RESELL AWARD

ReSell CNC Growing Fast

Machinery Dealers National Association (MDNA) Member Firm, ReSell CNC was recognized in The 2014 Inc. 5000 Magazine as the #155th fastest growing privately held company in the United States and the #8th fastest growing Business Services Company.

ReSell CNC was established in 2008 and is headed by MDNA member, John Butz. ReSell started as a small one man shop and has grown into a full stocking dealer with twenty employees and representatives across the United States.

Inc500_stacked_gold

inc500 (2) RESELL AWARD

 

 

 

 

 

ReSell CNC stocks all types of used CNC machine tools while focusing on metal cutting machinery such as Mazak, Haas, Mori Seiki, Okuma, Makino, Fadal, Daewoo, Kitamura, Citizen, Star and many more CNC machine brands. ReSell resells manufacturing equipment through auctions and liquidation sales.

John Butz, the founder and president of ReSell CNC and Mike Mills who joined the company this year and runs ReSell CNC West, the office in Scottsdale, AZ, have worked in the CNC business for over twenty years and bring the knowledge and experience that was needed to grow the company so fast.

john butz, RESELL
John Butz, RESELL CNC
Mike MIlls RESELL
Mike Mills, RESELL CNC

 

 

 

 

 

 

 

Matt Horn, Vice President of Operations, ReSell CNC remarks on how they were able to get here-

“Our rapid growth has been propelled by the addition of auction capabilities to the already extensive retail services we can provide to customers and by the addition of our Western US office in Scottsdale, AZ. These two additions have allowed us to bring more comprehensive solutions to our customers and to expand our customer base into the Western US.”

#stockingdealer #usedmachinery #cncbusiness #cnc #usedcnc

LPL 2015 OUTLOOK 1

Outlook for 2015, LPL Financial

Written by Douglas M. O’Rear, AIF®  - Chandler, O’Rear & Associates

Looking ahead to 2015, I see a year that will be marked by transitions. Likely changes in LPL 2015 OUTLOOK 1monetary policy around the world, the return of volatility, and the recent shift in the political balance of Congress could mean 2015 is a year that will have the global economy, markets, and central banks all on the move.

LPL Financial Research has identified significant elements that will be in transit in 2015, which include:

  • The U.S. economy continues its transition from the slow gross domestic product (GDP) growth of 2011–2013 to more sustained, broad-based growth. Ongoing progress in the labor market, an uptick in wage growth, and continued improvement in consumer and business spending have propelled an uptrend in U.S. economic output. LPL Research expects that inflation—which has historically accelerated as the economy moves into the second half of the business cycle—is poised to continue proceeding higher, but only modestly so.
  • Central banks around the world will also be on the move in 2015. In the United States, the economy is likely to continue to travel toward a point where the Federal Reserve (Fed) will begin raising interest rates, albeit gradually, for the first time in nine years. The Eurozone and Japan—the world’s second and fourth largest economies, respectively—could benefit, as central banks in those regions embark on more aggressive policy actions aimed at restarting and re-accelerating their long-dormant economies.
  • Washington shifts from a relatively quiet 2014 to take a bigger role in 2015. The Republican takeover in the Senate and approaching debt ceiling limit might provide the opportunity for some movement out of the gridlock that has plagued Washington in recent years.

Against this backdrop, LPL Research forecasts the following:

  • The U.S. economy is expected to expand at a rate of 3% or slightly higher in 2015. This forecast matches the average growth rate over the past 50 years, and is based on contributions from consumer spending, business capital spending, and housing, which are poised to advance at historically average or better growth rates in 2015.
  • Tempered by increasing levels of volatility, stocks may be poised to advance 5–9%. LPL Research expects continued economic growth, benign global monetary policy, and a more favorable policy climate from Washington indicate that the powerful, nearly six-year-old bull market should continue. This forecast is in-line with the average stock market growth of 7–9%, since WWII. Supported by improved global economic growth and stable profit margins in 2015, expected earnings per share growth for S&P 500 companies is 5–10%.
  • Expect flat bond market returns. With sustained improvement in economic growth, slowly rising inflation, and the approach of the Fed’s first interest rate hike, bond prices are likely to decline in 2015. LPL Research believes high-yield bonds and bank loans with their attractive yields can help investors manage this challenging bond market.lpl 2015 outlook 2

To help investors prepare for an expected market in transition, LPL Research has compiled timely advice into its Outlook 2015: In Transit publication. Transition, as is described in this publication, is just another word for change. The forthcoming change in the economic and market landscape in 2015 offers great opportunities, but also major challenges, likely in the form of increased volatility. However, as LPL Research forecasts relatively strong economic growth unfolding over the horizon, the bigger threat to most investment portfolios will be the pull of our emotions. It is human nature to weigh market struggles substantially more than the strong market returns between them. As investors, keeping our emotions in check when confronting increased volatility could be the key to potential success in 2015. With an investment strategy in hand and a destination in mind, LPL Research believes 2015 is poised to be a potentially favorable, though perhaps volatile, year for investors.

Read the full report here: LPL 2015 Outlook

LPL 2015 Outlook Abridged

 

arnold story 1993 - MIX 96

Radio DJ Turned Machinery Dealer

MDNA Member Jon Arnold celebrates his 20th Anniversary with Arnold Equipment Company, and shares his interesting beginning

Written by Jon Arnold, President, Arnold Equipment Company                                                                                                  Published 12/16/2014

Flash back

It’s the fall of 1994.  There I was, working as the afternoon drive DJ for Mix 96 in La Crosse, Wisconsin.  Being heavily involved with station promotion and live remote broadcasts, I helped bring the station’s ratings up in the market for my time slot.

Jon Arnold 1993 - MIX 96 VAN

Time For A Change

Unfortunately, the ownership group decided to go in a new direction and change music formats.  They blew up the staff and I was out of a job.  Immediately, I was hired by the top station in town (Z-93) on a part-time basis.  It was at that time that I reassessed my career and decided to go in an entirely different direction.

Jon Arnold  1993 - MIX 96

Growing up

I spent summer’s cleaning machines, driving the forklift, answering phones and not really paying much attention to what dad did for a living other than what time I was done working so I could hang out with friends or go play 9 holes before dark.  Looking back, I wish I would have shown more interest in dad’s business which I often said “I would never get into.”

Jon Arnold with Used Machinery

 

Never Say Never

My dad, Nate Arnold, gave me the option in November of 1994 to join him in the machinery business.  He told me “If you don’t like it in 3 months, go do something else.”  20 years later, I’m happy to say I’ve stuck with it and have really enjoyed meeting and working with people from all over the world.  Nate is now happily retired and I’m continuing to move forward with the business, keeping it alive and thriving in a fast paced world.  I have made many friends in the business and look forward to what the next 20 years will bring.

Jon and Nate Arnold, Arnold Equipment Company

Nate Arnold with Used Machinery

Carolyn Lee, NAM

MDNA Convention 2015, Speakers

Machinery Dealers National Association Announces Powerful Leading Ladies To Speak For The 74th Annual Convention In April 2015, Washington, D.C.

Carolyn Lee, NAMCarolyn Lee is Senior Director of Tax Policy at the National Association of Manufacturers (NAM), the nation’s largest industrial trade association. In this role Carolyn is responsible for portions of the NAM’s tax portfolio, including issues individual marginal tax rates – which are a top priority for small and medium sized manufacturers – as well as tax issues relating to investment income, energy efficiency and capital cost recovery. Lee is also the NAM’s lead for the implementation of the derivatives title of the Dodd-Frank Wall Street Reform Act. Prior to joining the NAM in the fall of 2011, Lee served as the Director of Legislative and Government Affairs at the Telecommunications Industry Association, Manager of State and Federal Government Affairs for 3M Company and in various positions on Capitol Hill including as Legislative Director for former U.S. Senator Olympia Snowe (R-ME), and as a senior legislative staff member for former U.S. Rep. Sue Kelly (R-NY).  Carolyn is a graduate of Gettysburg College in Gettysburg, Pennsylvania graduating with a B.A. in Political Science and lives in Arlington, Virginia with her husband and two children.

Lindsay Mannion, BB&T WEALTH, Assistant Vice President, of Atlanta, Georgia will lmspeak to attendees on the following topics: Financial Markets Update, Financial Planning and Retirement Planning. BB&T was recently recognized as one of “Forbes Best Banks 2013” by Forbes and was named among the Top 20 of the World’s Strongest Banks by Bloomberg Markets magazine in May 2012.

As a BB&T Private Wealth Financial Advisor, Lindsay Mannion helps her clients take a comprehensive, strategic approach to nancial planning even in the early stages of asset accumulation. Utilizing an in-depth nancial needs assessment and in partnership with BB&T specialists in Banking, Strategic Credit, Risk Management, Investments and Trust & Estate Planning, she develops recommendations tailored to her clients’ needs, priorities and preferences.

Lindsay attended the University of North Carolina at Wilmington where she earned a BS in International Business and the Spanish language. She also completed BB&T’s Leadership Development Program. She holds Life, Accident, and Health Insurance licenses, as well as Series 7 and 66 Securities licenses.

Learn More about the 2015 Convention here 

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Government Affairs Update-Section 179

Government Affairs Update: December 22, 2014, 10:00 am  uscapitol-washingtondc-picture1

Via: Mark Robinson, Executive Vice President, MDNA

RE: On Friday, December 19, 2014, the President signed into law H.R. 5771  

Per the White House Press Secretary: “On Friday, December 19, 2014, the President signed into law: H.R. 5771, which temporarily extends several expired tax provisions related to individuals, business, and energy through December 31, 2014; and exempts from taxation Achieving a Better Life Experience (ABLE) accounts set up for the benefit of persons with disabilities to assist in maintaining health, independence, and quality of life.”

What this means:

As previously reported this law retroactively expands Section 179 deduction limits thru 12/31/2014. This new law reinstates the limit on Section 179 to $500,000 as well as reinstates 50% Bonus Depreciation.  Effective January 1, 2015 the Section 179 limit reverts back to $25,000 and will remain there unless Congress acts AGAIN!


Government Affairs Update: December 17, 2014, 11:30 am

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Via: Mark Robinson, Executive Vice President, MDNA

RE: What you should tell your customers about the Tax Extenders Bill:

Late Tuesday evening HR.5771 was passed by the Senate having already been approved by the House on December 3rd. Once signed by the President into law (sources indicate he will sign this bill) the law will extend the tax breaks regarding Increased Expensing and Bonus Depreciation that expired in 2013 through December 31, 2014.

  • Through December 31, 2014 the Section 179 Expense Deduction Limit is $500,000
  • 2014 Limit on Capital Purchases = $2 Million
  • 50% “Bonus Depreciation” on qualified assets placed in service during 2014, however Bonus Depreciation does not apply to Used Capital Equipment
  • As always customers should seek advice from their tax advisers

Government Affairs Update: December 17, 2014, 10:00 am

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Via: Mark Robinson, Executive Vice President, MDNA

Late Yesterday H.R.5771, The Tax Increase Prevention Act of 2014 passed the Senate.

Senate Record shows: “Status: Passed Senate, under the order of 12/16/14, having achieved 60 votes in the affirmative, without amendment by Yea-Nay Vote. 76 – 16. Record Vote Number: 364.”


Government Affairs Update 12/16/14.  10:00 am

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Latest Senate Action on H.R.5771 

Via: Mark Robinson, Executive Vice President, MDNA

12/15/2014 Senate floor actions: Motion to proceed to consideration of measure made in Senate.

Late Yesterday Senate Majority Leader Harry Reid indicated that the Tax Extender Bill, H.R.5771, approved earlier this month by the House would be passed by the Senate within “Days” and then sent on to the President.  He indicated that it would likely not be changed as this would send it back to the House.

It cannot be stressed enough that if H.R.5771 is passed by the Senate and signed by the President it is only effective for 2014.  And this issue will have to be addressed all over again next year.

This delay was caused by the Senate taking up and passing a spending bill that averted a Government shutdown and consideration of a series of nominations prior to moving on the Tax Extender Package.


Government Affairs Update 12/12/14

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Via: Mark Robinson, Executive Vice President, MDNA

NAM, our lobbying partner in Washington, D.C. has just informed MDNA that the Senate may vote by the end of today on the Tax Extender bill passed by the House last week and reported to you in the MDNA Biweekly on Tuesday December 9th.

If passed by the Senate and signed by the President this law would ONLY cover the 2014 calendar year.

Currently HR5771 contains the following language regarding Section 179:

EXTENSION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.

(a) In General-

(1) DOLLAR LIMITATION- Section 179(b)(1) is amended–

(A) by striking `beginning in 2010, 2011, 2012, or 2013′ in subparagraph (B) and inserting `beginning after 2009 and before 2015′, and

(B) by striking `2013′ in subparagraph (C) and inserting `2014′.

(2) REDUCTION IN LIMITATION- Section 179(b)(2) is amended–

(A) by striking `beginning in 2010, 2011, 2012, or 2013′ in subparagraph (B) and inserting `beginning after 2009 and before 2015′, and

(B) by striking `2013′ in subparagraph (C) and inserting `2014′.

(b) Computer Software- Section 179(d)(1)(A)(ii) is amended by striking `2014′ and inserting `2015′.

(c) Election- Section 179(c)(2) is amended by striking `2014′ and inserting `2015′.

(d) Special Rules for Treatment of Qualified Real Property-

(1) IN GENERAL- Section 179(f)(1) is amended by striking `beginning in 2010, 2011, 2012, or 2013′ and inserting `beginning after 2009 and before 2015′.

(2) CARRYOVER LIMITATION-

(A) IN GENERAL- Section 179(f)(4) is amended by striking `2013′ each place it appears and inserting `2014′.

(B) CONFORMING AMENDMENT- The heading of subparagraph (C) of section 179(f)(4) is amended by striking `2011 AND 2012′ and inserting `2011, 2012, AND 2013′.

(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2013.