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Politics : Formerly About Applied Materials

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Feb 6 9:30 AM EST

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To: StanX Long who wrote (61735)	3/8/2002 1:35:37 AM
From: StanX Long	Read Replies (1) of 70976

Stimulus Bill Would Help Tech Firms Equipment Purchases Could Yield Tax Breaks By Jonathan Krim Washington Post Staff Writer Friday, March 8, 2002; Page E01 washingtonpost.com The economic stimulus package quickly moving through Congress contains a boon for the high-technology industry that many had given up for dead only a few months ago -- tax breaks for businesses that invest in computer hardware, software and other equipment. Many corporate and individual tax breaks pushed by the White House and congressional Republicans were stripped from the bill before it overwhelmingly passed the House yesterday. That the write-offs for equipment investments remained is testimony to the growing clout of the tech lobby, which is spending increasing amounts of time and money cultivating Capitol Hill. The technology sector has been hit hard since its bubble burst in mid-2000 and the economy slid into recession. With companies everywhere struggling for profits and growth, orders for new technology equipment evaporated. The tax break, which would run for three years, allows companies to take a 30 percent write-off for a piece of equipment in the first year it is put to work, then take the current 20 percent deduction on the remainder. Although the write-offs apply to all capital equipment, the tech sector is widely viewed as the main beneficiary. Lobbyists hope the bill will open the door to making the change permanent. The theory is that the increased write-off will spur buying. But those tax breaks will cost the Treasury $35.3 billion in fiscal 2002, according to a congressional analysis. Over the life of the provision, the cost would be $126.7 billion.

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