Presidential elections always make for an interesting congressional year, as much legislating becomes stalled in anticipation of what lies ahead or, more likely, who has control and power of what lies ahead. As Congress enters a lame-duck session, Members of Congress are tasked with tackling a funding bill for 2025, passing the National Defense Authorization Act (NDAA) and passing or, more likely, extending the Farm Bill, all while preparing for a new administration and the 119th Congress.
Although there is much left to get done before the end of the year, ELFA has been particularly focused on the Ways and Means Committee’s preparation for the 119th Congress and making sure committee members from both sides of the aisle understand the impacts of expiring policy crafted in the 2017 Tax Cuts and Jobs Act (TCJA).
Just last month, ELFA wrote the Ways and Means Committee, framing the lens our industry will be using when evaluating any tax policy proposals, and asked the committee to reinstate 100% expensing and revert interest deductibility standards to full deductibility. In the letter, we specifically stated our support for a tax code that will promote economic growth, competition and predictability and encouraged parity between owner-lessors and owner-users of equipment.
The Ways and Means Committee membership looks very different than it did in 2017 during TCJA. Currently there are only five Republicans and nine Democrats out of the 43 committee members who served on Ways and Means during the development of TCJA. It is with that in mind that ELFA recognizes the work ahead, educating these relatively new committee members on these issues that can either bolster our industry or hamper it. We can only lay strong groundwork for a new year, new Congress and hopefully a new tax package with your support.
It is with that in mind that this article serves as a call to action, asking you to start engaging your member of Congress, sharing your story, the industry you represent, and the industries and communities you support. Those serving on the Ways and Means Committee will most certainly be familiar with bonus depreciation and interest deductibility, but not necessarily the ramifications TCJA had on the equipment leasing and finance industry and therefore the businesses we support.
As ELFA continues to push for a new tax proposal, we encourage your guidance and support. A new tax package will not come about without constituent and industry input.
