Freight Transportation Services Index decreased 1.0 percent to 125.6 in August from the July level of 126.9, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics. The decrease follows a one-month rise in July. The August 2004 level of 125.6 is 6.1 percent higher than the August 2003 level of 118.4. The baseline year for the experimental index, which was launched in March, is 1996.
Missouri Department of Transportation is considering a proposal to place five toll plazas on Interstate 70 between Kansas City and St. Louis to help fund a major overhaul of the highway. Information on the project, called Improve I-70, is available at this site.
CompuNet Credit Services, a supplier of business credit information to the transportation industry, has been acquired by First Advantage Corp. CompuNet developed and maintains a database of payment practice records on more than 60,000 transportation brokers and shippers in North America. Subscribing clients can evaluate the nonpayment risk of shippers and brokers before agreeing to transport cargo on credit.
XTRA Lease has been honored as the bronze medal winner in the Credit Risk Management category of the 2004 Alexander Hamilton Awards for their implementation of nFusion, eCredit’s integrated credit and collections automation suite. XTRA said that a key component in its success in providing optimal customer service is its ability to make high-quality credit decisions rapidly.
The American Jobs Creation Act of 2004, which became law (Public Law 108-357) on the eve of the 2004 elections, contains many tax law changes that should interest owners and executives of trucking companies. Two of the more significant provisions that relate directly to the trucking industry are elimination of installment payments for the heavy vehicle use tax and a restructuring of the tax on truck tires. (See “Law changes trucking taxes,” page 52.) But many of the law’s more general provisions also affect trucking executives.
On the whole, the tax act contains many tax breaks and extensions of expiring tax breaks, and that is good for business in general. But there also are “revenue enhancements” that raise funds to offset some of the breaks being given. So, some win, some lose.
In terms of “what’s good for business,” there has been an extension of the expanded “Section 179” deduction, or first-year write-off of equipment, for the $100,000 limit. This is extended for two more years and now will run through 2007. On the other hand, the so-called “Hummer Write-off” has been eliminated. Big SUVs have this Section 179 deduction limited to $25,000. If you have read my previous columns about buying stuff just to get the tax break, you know I’m not sorry this tax break is being cut back.
