PRESIDENT BUSH & CONGRESS
Have Given You and Your Customers

Ten Good Reasons to Buy New Printing, Publishing
and Converting Technology Now!!!

Calculate Your Savings Here

Following are ten hypothetical*, but typical and realistic examples of the powerful investment incentives available under the new Jobs and Growth Tax Relief Reconciliation Act of 2003. They could be real deals for NPES members and their customers if equipment is purchased and installed before January 1, 2005.

Huge tax/capital savings are available now to help printers and their suppliers make needed technological improvements, and are designed to assist in jump-starting manufacturing investment in the United States economy.

Pre-press Equipment

GOOD REASON # 1

Color Scanner
Example Price - Without Tax Cut: $100,000
New Small Business Expensing Provision = $100,000/year (up $400,000 of investment)
Total First-year Depreciation = $100,000 (100% of new asset)
Tax Savings = $40,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $60,000 - a 40% Savings!

GOOD REASON # 2

Computer to Plate System
Example Price - Without Tax Cut: $150,000
New Small Business Expensing Provision = $100,000/year (up $400,000 of investment)
Plus New 50% Bonus First-year Depreciation = $25,000
Plus Regular 7% Depreciation = $3,500
Total First-year Depreciation = $128,500 (85% of new asset)
Tax Savings = $51,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $99,000 - a 34% Savings!

GOOD REASON # 3

RIPs (Raster Image Processor)
Example Price - Without Tax Cut: $200,000
New Small Business Expensing Provision = $100,000/year (up $400,000 of investment)
Plus New 50% Bonus First-year Depreciation = $50,000
Plus Regular 7% Depreciation = $7,000
Total First-year Depreciation = $157,000 (78.5% of new asset)
Tax Savings = $63,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $137,000 - a 32% Savings!

Press Equipment

GOOD REASON # 4

Two-color, Small Sheetfed Press
Example Price - Without Tax Cut: $50,000
New Small Business Expensing Provision = $100,000/year (up $400,000 of investment)
Total First-year Depreciation = $50,000 (100% of new asset)
Tax Savings = $20,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $30,000 - a 40% Savings!

GOOD REASON # 5

Six-color, 56 Inch Wide Sheetfed Press with Coater
Example Price - Without Tax Cut: $3.5 Million
New 50% Bonus First-year Depreciation = $1.75 Million
Plus Regular 7% Depreciation = $250,000
Total First-year Depreciation = $2 Million (57% of new asset)
Tax Savings = $800,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $2.7 Million - a 23% Savings!

GOOD REASON # 6

Twelve-color 40 Inch Wide Sheetfed Perfector Press
Example Price - Without Tax Cut: $4.5 Million
New 50% Bonus First-year Depreciation = $2.25 Million
Plus Regular 7% Depreciation = $320,000
Total First-year Depreciation = $2.57 Million (57% of new asset)
Tax Savings = $1 Million (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $3.5 Million - a 23% Savings!

GOOD REASON # 7

Eight-color, 40 Inch Wide Heatset Web Press
Example Price - Without Tax Cut: $ 8 Million
New 50% Bonus First-year Depreciation = $4 Million
Plus Regular 7% Depreciation = $570,000
Total First-year Depreciation = $4.57 Million (57% of new asset)
Tax Savings = $1.8 Million (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $6.2 Million - a 23% Savings!

Finishing & Converting Equipment

GOOD REASON # 8

Paper Cutter
Example Price - Without Tax Cut: $50,000
New Small Business Expensing Provision = $100,000/year (up $400,000 of investment)
Total First-year Depreciation = $50,000 (100% of new asset)
Tax Savings = $20,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $30,000 - a 40% Savings!

GOOD REASON # 9

Mid-range Saddle Stitch Machine
Example Price - Without Tax Cut: $200,000
New Small Business Expensing Provision = $100,000/year (up $400,000 of investment)
Plus New 50% Bonus First-year Depreciation = $50,000
Plus Regular 7% Depreciation = $7,000
Total First-year Depreciation = $157,000 (78.5% of new asset)
Tax Savings = $63,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $137,000 - a 32% Savings!

GOOD REASON # 10

Laser Digital Converting System (die-cutter)
Example Price - Without Tax Cut: $300,000
New Small Business Expensing Provision = $100,000/year (up $400,000 of investment)
Plus New 50% Bonus First-year Depreciation = $100,000
Plus Regular 7% Depreciation = $14,000
Total First-year Depreciation = $214,000 (71% of new asset)
Tax Savings = $86,000 (assuming 40% effective tax rate)
New Effective Price - With Tax Cut = $214,000 - a 29 % Savings!

*Prices used in the examples are for purposes of illustrating the effect of the new tax law investment incentives only. They fall in a range of possible prices for the type of machine used in the example, and could vary depending upon many factors, such as features of the machine and terms and conditions of the particular transaction.

For More Information contact:

Cynthia Valentino, NAPL
800/642-6275, ext. 1329
cvalentino@napl.org

Mark J. Nuzzaco, NPES
703/264-7200, ext. 235
mnuzzaco@npes.org

Ben Cooper, PIA
703/519-8115
bcooper@printing.org