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TAX RELIEF Go Ahead, SPEND Permanent federal tax credits for new equipment and R&D may help open wallets at IBIE. by Laurie Gorton, Baking & Snack T This past Christmas, the feds gave bakers - indeed, all US manufacturers - a huge gift: permanent extension of tax credits for investing in capital equipment and R&D. That means you can write off as much as $2 million annually for qualified purchases. In late December, Congress passed the Omnibus Appropriations Act of 2016. The bipartisan measure got an immediate signature from President Barack Obama, allowing it to go into effect for 2015, too. Over the years, many similar appropriations and tax laws included credits and deductions for such investments but always for a limited period, usually two to five years. When the time limits ran out, industry and legislators scrambled to reinstate the write-offs. Often, a year or more would go by before the tax credits returned. "With the credits being made permanent, you can know what the rules are," said Larry Marcucci, president and CEO, Alpha Baking Co., Chicago. "It's frustrating to run a business when the rules keep changing. It's great news to have the credits be made permanent." The law also affected tax credits for R&D. "Every two or three years, we've had to get this extended," said Robb MacKie, president and CEO, American Bakers Association (ABA). "It's a nice bonus to have it made permanent." IBIE advantages Politicians of all stripes tend to like credits that act as spending stimulants and lower business taxes. AdobeStock It's easy to see the gains to be reaped by bakers now getting ready to attend IBIE. "This will be a nice fit for a lot of bakeries, especially coming up on IBIE this fall," Mr. Marcucci said. "It will help open the checkbook a little wider." Michael Cornelis, chairman of IBIE 2016 and vicepresident, international sales, American Pan, a Bundy Baking Solution, noted that attendees and exhibitors will benefit due to the continued tax savings and other incentives offered in the omnibus law. Such incentives help bakers and food manufacturers justify purchases that can improve their operations in both the short and long runs. "It's going to be a potentially huge windfall for those companies that are looking to invest in baking equipment to improve their operations," Mr. Cornelis said. "It will enhance [bakers'] efforts to better serve their customers - and eventually the end consumer - through more effective and targeted R&D initiatives." Mr. MacKie agreed. "We are very excited about the tax extenders package that passed at the end of 2015," he said. "It was very helpful to make these permanent, particularly the R&D and capital expenditures. We anticipate this will be very helpful as bakers come into IBIE with their reinvestment plans." ABA participated in the National Association of Manufacturers' efforts to shepherd this provision through the lawmaking process. "ABA was pleased to be IBIE 2016 / PreShow Guide / 93

Table of Contents for the Digital Edition of IBIE - 2016 Special Edition & Show Preview

IBIE - 2016 Special Edition & Show Preview
Table of Contents
IBIE PERSPECTIVE - Challenges Amid Attractive Conditions
STATE OF THE INDUSTRY - Well Positioned for Growth
Fuel for the future
PARADE OF PROGRESS - Bakers and exhibitors say they go to IBIE because …It's About the Future
EQUIPMENT TRENDS SURVEY - Good Vibrations
IBIE TECH - Must-have Mobile
ENGINEERING ROUNDTABLE - Putting it on Automatic
ABA PERSPECTIVE - Election 2016: The Stretch Run
Getting the Message Out
‘Premiumization’ opportunities abound
B&CMA, ABA - Pathway to the Future
Cookie-cracker education at IBIE
FSMA & THE BAKERY - Proof of Validation
SANITATION & SAFETY - Signs of the Times
How to collaborate, a PMMI protocol
PACKAGING - One-stop Shop
COLD STORAGE LOGISTICS - Securing Smooth Sailing
INGREDIENT CHOICES - The Big Questions
Go ahead, eat, it’s safe
TAX RELIEF - Go Ahead, Spend
SOCIAL MEDIA - Plugged into Consumers
INGREDIENT TRENDS - Favorable Forecast
INGREDIENT TRENDS: FATS & OILS - Deadline: 2018
WORKFORCE GAP - A New Paradigm
BREAD TRENDS - I Love Bread
bake - Special Edition
Retail Perspective - Road to Recovery
Retail Perspective: Equipment - Innovations Abound
Retail Perspective: Cake - Standing out from the crowd
Retail Perspective: Education - School in session
A World of Opportunity
INTERNATIONAL INSIGHT: BAKED FOODS - Global Growth: It's Not Easy
ALL-AMERICAN TAILGATE - Kickoff IBIE 2016
VEGAS GUIDE - Something for everyone
Off the beaten path
Ad Index

IBIE - 2016 Special Edition & Show Preview