April 23, 2001
CONTACT: William Gager
(703) 968-2772
gager@BuyReman.com

Gager Testifies on Capitol Hill for Reman Tax Credit

Fairfax, Virginia – TRI Chairman William C. (Bill) Gager urged the House-Senate Joint Committee on Small Business to support tax relief for the remanufacturing industry.  In a prepared statement to the committee, Gager called on the 107^th Congress to pass a 20% tax credit on remanufacturing equipment purchases and to pressure the Internal Revenue Service into cooperating more readily with the industry in tax simplification and core valuation issues. Gager submitted written comments to the committee and participated in a roundtable discussion with leaders of several other industries and business organizations.  

Rep. Donald Manzullo (R-IL), who co-chaired the roundtable discussion, has introduced H.R. 1037, the Small Employers Tax Relief Act.  Included in H.R. 1037 is the language from last year’s remanufacturing tax credit legislation, submitted by Representatives Phil English (R-PA) and John Tanner (D-TN), that called for a 20% tax credit on the purchase of equipment used in metals recycling (core suppliers) and remanufacturing.   Gager praised Manzullo and also Representative Nydia Velazquez (D-NY) for including the remanufacturing tax credit in their jointly sponsored bill.  “This will go a long way to help our environmentally friendly industry and the many small business owners who have invested their money and energy into it,” said Gager to the committee.

The overall bill is divided into four sections: tax relief, tax relief for environmental protection, tax simplification, and taxpayer protection. The remanufacturing portion of the bill is listed under the environmental segment, in Section 202.

Gager also took the opportunity to ask for congressional assistance in dealing with the Internal Revenue Service.  “The remanufacturing industry has not found the Internal Revenue Service receptive to working with it to resolve tax issues of concern,” declared Gager. Of particular concern to the automotive parts rebuilder community is the valuation of cores for tax purposes.

A variety of tax-related issues were discussed during the roundtable, including the controversial death tax and the Alternative Minimum Tax.  The subject of the death tax unleashed a particularly lively exchange between supporters of President Bush’s tax plan which calls for the abolition of the estate tax over 10 years and those who believe the dreaded tax should be abolished much sooner. 

“It was a productive meeting,” says Gager of the roundtable event.  “It’s important that we all take whatever opportunities we can to educate our leaders about our remanufacturing industry.  Such efforts will most certainly pay off.” 

Gager is optimistic that remanufacturing tax relief will pass in the 107^th Congress.  “The groundwork was effectively laid last year, and there’s broad support this year for small business tax cuts in general.  So long as our members keep in touch with their representatives in Congress, we will be in great shape.”

Remanufacturers are encouraged to contact their member of the House of Representatives, and urge him/her to co-sponsor HR 1037, the Small Employers Tax Relief Act.

For more information on HR 1037 and TRI’s efforts to achieve remanufacturing industry tax relief, visit the Remanufacturing Tax Credit Center at http://www.reman.org/tax_credit_center.htm

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The Remanufacturing Institute (TRI) is a non-profit, international trade association serving the $53 billion/year remanufacturing industry.  Remanufacturing is the ultimate form of recycling.