Accountant alert: Tax Bill repeals low cost tax exempt loans for your manufacturing clients.
The Tax Cuts and Jobs Act will eliminate your manufacturing clients ability to borrow money on a tax exempt basis. Title 26 section 144 of the Internal Revenue Code gives banks the ability to lend money to manufacturers on a tax exempt basis. That means your client’s interest expense on an expansion project would be reduced by 30 to 45 percent. Help us keep this provision intact. Please reach out to your representatives in Washington and ask them to eliminate the repeal of private activity bonds and tax exempt bank loans from the tax cut bill.
If you are not familiar with this federal incentive and would like to know more so you can help your manufacturing clients please contact us at [email protected] or 610 763 2310