[Congressional Record Volume 155, Number 13 (Thursday, January 22, 2009)]
[Senate]
[Pages S790-S791]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN:
  S. 304. A bill to amend the Internal Revenue Code of 1986 to 
stimulate business investment, and for other purposes; to the Committee 
on Finance.
  Mr. DORGAN. Mr. President, today I am introducing legislation called 
the Main Street Recovery Act to boost business investment and help 
jumpstart the ailing U.S. economy. We are facing our most serious 
financial challenge since the Great Depression and we must respond 
aggressively. Our financial services sector is in shambles and other 
business sectors are suffering.
  Employers have been slashing jobs at an alarming rate--including 2.6 
million jobs last year--to reduce operating costs. Some economists are 
predicting that the unemployment rate could jump to 10-percent or more 
this year in many parts of the country.
  The manufacturing and construction sectors have been particularly 
hard hit during this downturn. The manufacturing sector laid off 
791,000 workers in 2008. The unemployment rate among construction 
workers in December was 15.3 percent, eight percentage points higher 
than for the economy as a whole. More than 1.4 million experienced 
construction workers are currently unemployed.
  I believe immediate action is needed to prevent our economy from 
sliding into a deeper recession that would lead to more bankrupt 
businesses and massive layoffs of workers across the country. That is 
why I will support a stimulus program that will create jobs by 
investing in infrastructure projects such as roads, bridges, water 
projects and more.
  But I also think we need to provide some targeted tax incentives to 
encourage the business community to consider making capital investments 
even during the economic slowdown. The legislation I am introducing 
today includes the following tax incentives that I believe can 
stimulate business investment: a temporary 15-percent investment tax 
credit. To encourage manufacturers and producers not to wait on making 
crucial equipment and machinery purchases, we should give them every 
incentive to make these purchases now or in the near future when these 
investments will most benefit the economy.
  We can accomplish this by offering a temporary, 15-percent tax credit 
through June 30, 2010 for businesses that purchase new equipment and 
machinery that is used as an integral part of manufacturing or 
production. Investment tax credits have been proven to work and will 
help generate growth and jobs in the nation's manufacturing and 
construction sectors.
  Enhanced 50-percent bonus depreciation. To promote business 
investment now, when the economy needs it most,

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we should extend the expiring 50-percent bonus depreciation for 
eligible assets placed in service over the next 18 months. This will 
help businesses make capital investments during the economic downturn 
by allowing businesses to write-off a larger share of their eligible 
business investments more quickly from their federal income taxes.
  Increased $250,000 small business expensing. To help small businesses 
buy the equipment and machinery they need to weather this economic 
storm and begin to grow again, we should extend the expiring expensing 
provision that allows small businesses to expense, i.e. immediately 
deduct, up to $250,000 of their equipment and machinery purchases over 
the next year and a half.
  In addition, there are many business owners that do not require new 
equipment or machinery but instead want to build a new business--maybe 
a restaurant, perhaps a retail shop or make interior and other 
improvements to such properties. Expanding the bonus depreciation and 
small business expensing provisions outlined above to cover investments 
in commercial real property will help provide business owners with the 
financial assistance they need to build that building or make long 
overdue improvements.
  I am very pleased to have the support of the U.S. Chamber of Commerce 
and the National Restaurant Association for my proposals as part of a 
robust economic stimulus package.
  The Senate is working on a large economic recovery package and I am 
optimistic that the package will include these important provisions. I 
am told that the Senate Finance Committee plans to mark up the tax 
portion of this package next week, and I am pleased that Chairman 
Baucus has recognized the need to help our Main Street businesses. In 
my judgment, including the tax incentives I have proposed will help 
stimulate much-needed economic activity and get our economy growing and 
creating jobs once again.
                                 ______