Federal Advocacy Historical Documents

• • Bankruptcy Reform

  In 2005, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (P.L. 109-8). The Act contained two provisions specifically beneficial to the equipment leasing & finance industry: defaults based on non-monetary obligations and changes to the "ordinary course of business" rule.

  In the defaults based provision, the Act clarified the debtor-lessee is obligated to perform all non-monetary and monetary obligations 60 days after the order for relief of all monetary/non-monetary obligations pending assumption or rejection of the lease. This is to help ensure constancy in interpretation of bankruptcy courts of section 365(b)(2)(D).

  The second beneficial change makes it easier for equipment lessors to satisfy the "ordinary course of business" rule and keep rents paid within 90 days of the debtor-lessee's bankruptcy. Under this Act, if irregular rental payments from the lessee are viewed as coming within the 'ordinary course of business' in the industry then the lessor will be able to keep these payments.

• • Energy

  The financing of renewable energy equipment and projects is emerging as an important component of the equipment leasing and finance industry. Rising energy costs coupled with energy security and climate concerns have increased national interest in renewable electricity generation. Continued growth in this sector is dependent not only on technological advances but also upon the continuation of governmental support for renewable energy technologies. Renewable energy production tax credits (PTCs) and renewable energy investment tax credits (ITCs) are prime examples of this support.

  Following the passage of the Emergency Economic Stabilization Act of 2008 (P.L. 110-385) and the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), the federal 30% investment tax credit (ITC) for solar property is available for projects placed in service by the end of 2016 and can be taken entirely in the year of placement in service. Additionally, the solar ITC is allowed to offset alternative minimum tax (AMT) and regulated public utilities are allowed to claim solar ITC and the previous prohibition on combining the credits with other subsidized energy financing has been repealed. Solar equipment has attributes that are particularly suitable for leasing. Solar assets are long lived assets and require high up front financing. Solar projects provide a predictable source of supply, a proven technology and low maintenance costs.

  The production tax credit (PTC) for wind has been extended through 2012 and the PTC for biomass, geothermal and other non-solar renewables is extended through 2013. The ARRA allows eligible taxpayers to elect a 30% ITC in lieu of ten years of production credits and notably temporarily allows an elective conversion of a PTC or ITC into federal cash grants in amount of 30% of asset cost or the ITC amount. Thus parties have the option to forego tax credits and receive a check from the Treasury Department for 30% of the cost of the project.

  ELFA in Action:

  • ELFA Comment Letter on Energy Property Under Section 48
  • ELFA Supplemental Submission to Treasury on Renewable Energy Guidance
  • ELFA Renewable Energy FAQ Submission (June 2009)
  • Renewable Energy Issue Summary and Talking Points

  Guidance Materials:

  • Treasury Department Guidance on Renewable Energy Investment
  • Cash Grant Terms and Conditions and Application
• • Tax

  A bipartisan consensus is emerging that comprehensive tax reform is necessary and imperative to further economic growth in the United States. There is growing pressure for Congress and the President to address comprehensive reform to corporate and individual income taxes. The forces driving this need are rising deficits, expiring tax provisions, and concern of an unfair tax code.

  ELFA Supports Broad Tax Reform That:

  • Promotes investment in productive assets
  • Ensures maximum flexibility in financing options for businesses
  • Provides neutrality and equality in application to owner-lessors and owner users
  • Avoids changes to reduce or eliminate interest deductions that increase costs of capital
  • Incentivizes investments to create economic and job growth
  • Promotes the global competitiveness of U.S. companies

  Other Tax Provisions ELFA Monitors:

  • Active Finance Extension
    • Subpart F Extension Position Paper (May 2011)
  • Bonus Depreciation
    • ELFA Analysis of ARRA (March 2009)
  • Economic Substance Doctrine
    • 7701(o) Guidance Request (November 2010)
    • ESD Codification Letter (June 2010)
  • Expensing Provisions
    • Section 179 Expensing Industry Letter (February 2015)
    • 100% Expensing Letter to Joint Tax Committee (March 2011)
    • President Obama's Request for 100% Expensing (September 2010)
  • Like-Kind Exchanges
    • ELFA Letter to IRS on Like Kind Exchange (Feb 2009)
  • Section 467
    • Non-Level Rents: Issues and Opportunities
      By Glenn Johnson and Joe Sebik, with pricing analysis by David Holmgren, extended article from the Nov/Dec 2015 issue of Equipment Leasing & Finance magazine
  • SILO / LILO
    • ELFA Opposition Letter (December 2009)
  • Tax Reform
    • Tax Reform Industry Topics Page
    • Business United for Interest and Loan Deductibility (BUILD) Coalition
    • Interest Deductibility (May 2016)
    • U.S. Senate Letter on Tax Extenders (November 2014)
    • U.S. House Letter on Tax Extenders (November 2014)
    • Comprehensive Tax Reform Talking Points (2014)
    • Expiring Business Tax Provisions (2014)
    • ELFA Policy Statement on Comprehensive Tax Reform (2012)
    • ELFA WM Statement on Interaction of Tax and Financial Accounting
    • ELFA Statement On President Obama's Corporate Tax Reform Proposal
  • Congressional Actions
    • ELFA Summary of Specific Tax Extenders (ELFA Members Only)
    • 2015 Consolidated Appropriations Act
    • 2014 Tax Extenders: Section-by-Section Summary
    • Chairman Max Baucus (D-MT)
      • Cost Recovery Proposal
      • International Tax Proposal
      • Simplification Proposal
      • Energy Tax Proposal
• • Transportation

  • Aviation:
    • FAA Policy Clarification on Non-U.S. Citizen Trusts (June 2013)
    • DOT Inspector General FAA Registry Report (June 2013)
    • Aviation Working Group Letter to Administrator Huerta on NCT Agreements (August 2013)
    • Aviation Working Group Submission on Non-Citizen Trust Agreements (August 2012)
    • USITC Study on Business Jet Aircraft Competitiveness (April 2012)
    • ELFA submission to USTIC regarding Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness (October 2011)
    • Tax Treatment of Aircraft Engines (October 2010)
    • ELFA Public Comments to FAA NRPM (May 2008)
  • IRS Guidance:
    • IRS Guidance on Leasing Income for Aircraft and Vessels (July 2008)
• • Other

  • 2020 Congressional Policy Outlook
  • 2019 Fall Policy Outlook
  • ELFA Comment to US Department of Commerce Regarding Foreign Disposition of Certain Commodities (December 2018)
  • 2018 Mid-Term Election – Political Briefing: Landscape Analysis
  • SEC ABS Equipment Leasing & Lending Risk Retention Supplemental Letter (June 2012)
  • SEC Reg AB 2 Supplemental Letter (December 2011)
  • SEC Reg AB 2 Letter (October 2011)
  • ABS Equipment Leasing & Lending Risk Retention Letter (June 2011)
  • ABS Equipment Leasing & Lending Risk Retention Letter (Sept 2010)
  • Letter on Regulation AB (SEC File No.S7-08-10) (July 2010)
  • Syndication (Feb 2010)
  • Securitization (Feb 2010)
  • Vendor Dealer (Feb 2010)
• • Healthcare

  • IRS Final Rule on Medical Device Tax under the Affordable Care Act
  • Medical Device FAQ