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GRASSLEY: ETI REPEAL BILL TO BE COMPLETED IN AUGUST OR SEPTEMBER

June 16, 2004

Charles Grassley, Chairman of the Senate Finance Committee, yesterday told reporters that he expects a Senate-House conference to complete work on the repeal of the Extraterritorial Income Exclusion ("ETI") in August or September.

The longer it takes the taxwriters to come to an agreement, the you have to get a new sport-utility vehicle qualifying for the $100,000 "Section 179" deduction. The Section 179 deduction allows taxpayers to deduct the cost of equipment in the year of purchase, instead of over a period of years through depreciation deductions. The Senate bill would reduce the $100,000 ceiling to $25,000 for SUVs placed in service after the President signs the bills into law. The House bill lacks the SUV provision.

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