Tire dealers are among the myriad small businesses supporting the two-year extension of an important small business tax credit.
``Immediate tax savings lead to immediate reinvestment,'' said Ron Lautzenheiser, owner of two Big O Tires Inc. automotive service centers in Fort Collins, Colo., regarding the bill by Rep. Marilyn Musgrave, R-Colo., to extend until 2010 the $100,000 capital improvement expensing limit for small businesses on their tax returns.
President Bush signed the $100,000 expensing limit into law in 2003. The provision is set to lapse in 2008, at which time the old limit of $25,000 goes back into place.
Small businesses need the assurance of the $100,000 expensing provision to plan ahead for their businesses, Mr. Lautzenheiser said at an Aug. 9 hearing in Fort Collins on the Musgrave bill.
``Raising capital, particularly at affordable rates, is one of small businesses' great challenges,'' he said. ``The purchase of new capital equipment allows me to produce a higher-quality product or service, usually with less repair and maintenance cost.''
Opening a new tire center, he added, usually takes two or three years to allow for real estate purchases and facility construction, so having the $100,000 limit in place helps him in planning for new centers. Without the extension, he said, it's probably already too late to make such plans.
Speaking after the hearing, Mr. Lautenheizer said that John Adams, president of Centennial, Colo.-based Big O Tires Inc., will hold the quarterly meeting of Big O's Franchise Advisory Committee Sept. 12. At that time, the attendees-including Mr. Lautzenheiser-will meet with their elected officials to discuss legislation of importance to Big O dealers.
Leading the list, Mr. Lautzenheiser said, will be the expensing provision extension and the Motor Vehicle Owners' Right to Repair Act, which will require auto makers to make repair and diagnostic information available to independent auto repair shops. The bill probably will be part of the budget reconciliation package that will go before Congress this fall, said Becky MacDicken, government affairs director for the Tire Industry Association (TIA).