Welcome to e-Connections, the weekly AFS email newsletter. In this March 24, 2009, edition:
Research & Development Bill Creates Bonus Credit for Metalcasters
Legislation has been introduced in the U.S. House of Representatives that would make permanent the research and development tax credit and create an additional bonus credit for companies that manufacture at least half of their products in the U.S.
The bonus percentage would be available on a sliding scale proportional to the amount of domestic production. For instance, companies with a domestic production share between 50 percent and 60 percent could claim an additional 2 percent bonus credit. The bonuses would increase in 2 percent increments all the way up to an additional 10 percent bonus credit for companies with domestic production shares of more than 90 percent.
Under current law, the maximum R&D credit a company may claim is 20 percent, following the traditional formula, or 14 percent, following the alternative simplified credit (ASC) formula. A company with more than 90 percent of its production in the U.S. could increase its tax credit amount up to a maximum 30 percent (under the traditional formula) or 24 percent (under ASC).
The revamped credit is to save and create U.S. jobs. Manufacturers claimed more than 70 percent of R&D credits in 2005, and then used more than 70 percent of the money to pay R&D job wages, according to an April 2008 Ernst & Young report. The R&D tax credit expires at the end of the year. President Obama’s 2010 budget request to Congress includes a permanent extension of the R&D credit.
For more information, contact Alicia Oman, Metalcasting Industry Government Affairs Office, at ss@wafed.com or 202/842-4864.
U.S. Treasury Department Announces Program to Guarantee Payments Owed to Suppliers by Troubled Automakers
The U.S. Treasury Department announced a $5 billion program to help embattled U.S. auto parts makers, the latest attempt to stabilize problems in the nation's troubled auto sector. The program will insure that parts suppliers get the money owed to them for their products, no matter what happens to their automaker customers. Concerns about whether General Motors (GM) or Chrysler LLC could be forced into bankruptcy are making it difficult for the parts makers to receive loans they need to operate.
The program also allows the parts makers to sell their receivables, or the money owed to them by the automakers, into the program at a modest discount. This is expected to provide them with desperately needed funding and help unlock credit more broadly in the supplier industry.
The $5 billion is coming from the Troubled Asset Relief Program, the fund set up to bailout banks and financial institutions. GM and Chrysler have already received $17.4 billion in loans from that program and they are asking for up to $21.6 billion more in loans. The U.S. Treasury also said in its statement that the auto industry task force is still considering those requests.
For more information on the Auto Support Program, visit the U.S. Treasury Department's website by clicking here.
Safety Means Always Coming Home at NAOSH Week
The North American Occupational Safety and Health (NAOSH) annual safety celebration will be held May 3-9. The event is sponsored by the members of the Occupational Safety and Health Administration’s (OSHA) Alliance, which AFS is a member, and is intended to raise awareness about occupational safety, health and the environment. The kick-off will be in Washington, D.C. with events at the U.S. Department of Labor, the U.S. Capitol and worldwide.
The theme for this year’s event is “Safety Means Always Coming Home,” and will include:
- PPE awareness events
- fleet safety classes
- ergonomic awareness events
- teen worker safety courses
For more information on NAOSH safety week, contact Fred Kohloff, AFS director of environmental, health & safety, at 800/537-4237 x 230 or fhk@afsinc.org, or visit the NAOSH website by clicking here.
Metalcasting Design Blog is One Year Old
The Metalcasting Design Blog, in full swing and updating regularly, is now one year old.
Launched on March 26, 2008, the Metalcasting Design Blog on MetalcastingDesign.com has reached almost 30 installments and counting. For just more than a year now, the website staff has been commenting on industry trends, highlighting metal castings found in the everyday world, and providing reactions to news items and other metalcasting-related web materials.
Now is the time for the MetalcastingDesign.com readership to get involved and comment on the blog posts. Go to www.metalcastingdesign.com today and speak your mind.
In-Plant Training Available from CMI
Save money by bringing the training you need in-house. CMI can offer most of our regular courses as in-plant training, allowing you to train your employees locally, eliminating travel costs and reducing out-of-work time. AFS Corporate Members receive discounted pricing.
For more information, or to request a quote, contact Jennifer Head, CMI special projects and course coordinator, at 800/537-4237 x 244 or jhead@afsinc.org.
