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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Oct. 26, 1981)
age 12 THE BATTALION MONDAY, OCTOBER 26, 1981 National Firm holds forum for buyers, sellers ‘Leasing benefits’ now sell for cash United Press International NEW YORK — Once a corpo rate tax credit was valuable only if a company had profits it could offset, but now if it’s the kind of credit the IRS calls a leasing tax benefit — it can be sold for cash. That can be extremely helpful to companies that have such cre dits and need cash and others which will buy the leasing benefits to help offset their taxes, says Otto Lombardo, head of Cleveland’s AFI Finance Corp. Lombardo, who was with First Financial of Boston before found ing AFI in 1975, and Mario Di- Federico, retired president of Firestone Tire & Rubber Co., have formed a company called New York Leasing Forum, to set up a market for these tax benefits. Lombardo said some people have estimated that a possible $35 billion such tax benefits are lying around in American business and that $7 billion to $8 billion may have accumulated this year, which could be traded with undiluted value under the terms of Econo mic Recovery Tax Act of 1981. The values of older leasing tax benefits must be diluted by specific IRS formulas. The company will hold its first forum in New York Oct. 28 and 29. It won’t be an auction market, but a meeting of representatives of ab out 200 major companies in terested in selling or buying the benefits. Each company will pay a $1,000 registration fee and will pay Lombardo’s firm a fee on the face amount of any transactions completed. The fee on a $1 million transaction would be $2,500, for example. The government has a Nov. 13 deadline for taking advantage of tax benefits on assets acquired and placed in service before Aug. 13. This makes the first forum espe cially important, Lombardo said. Leasing tax benefits are limited to investment credits and depre ciation allowances on what the IRS calls “qualified leased property.” These are defined in the IRS code and result from sales and lease backs of equipment. But Lombardo said this law makes it easy for low-profit com panies to cut equipment costs by selling investment tax credits and depreciation benefits to lessors, but still keep use and control of TRY DRESSER ATLAS FOR One Two Fingers' Dorm Shirt Yours for s 6 95 It’ll cover you up. It’ll keep you warm. Besides, it says you have good taste when it comes to Tequila. Two Fingers. Order one up. . . the Tequila and the Dorm Shirt. Just fill out the coupon below and send along $6.95 for each shirt. The rest is up to you. Send check or money order to: Two Fingers Tequila Merchandise Offer P.O. Box 02609, Detroit, MI 48202 Please send me Dorm Shirt(s). I have enclosed $6.95 for each Dorm Shirt ordered. 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As a Jr. Field Engineer, you’ll undertake extensive training including supervis ed field work and 12 weeks of classroom instruction before being promoted to Field Engineer. At this stage, your career adventure really begins. You’ll be assigned a logging unit, crew and company car. Your generous base salary will be supplemented by monthly bonuses based on the income your work produces. Your progress will be in your hands on a job that is tough, demanding and long. But if you’re interested in accumulating real-world experience fast, there’s nothing like it. We offer full company benefits, relocation assistance and a variety of attrac tive locations, including the career active Rocky Mountain and Sunbelt areas. Enjoy the kind of personal recognition that comes from a high profile career like this one. See Your Placement Office We Will Be On Campus Friday, November 6th If you are unable to visit with us, send your resume detailing your background to: DremrAtlM Manager, Recruitment & College Relations P.O. Box 1407 Houston, Texas 77001 the equipment. The IRS has issued only temporary rules for these transactions and one ques tion has been raised: Can the equipment user sell the tax credit alone and keep the depreciation benefit? Lombardo said he ex pects the IRS eventually to say clearing house for clients. Hei said: “I know some investee bankers have attempted activife i similar to what we will do withtl- New York Leasing Forum on, Lombardo said he and Di- Federico believe an exchange forum for these tax credits will be a continuing and substantial busi ness. A lot of leasing tax credits that could not be utilized in the past now will be sold. He said AFI became interested in the possibility of marketing leasing tax credits through its reg ular service of acting as a lease smaller scale just for their ouq clients.” Lombardo said creating a mat j ket for leasing tax benefits is i logical succession, since sevedl years ago companies, that accumulated a loss that could hi carried forward as a tax bencfitl became a takeover candidal Then the buying corporatii could use this loss to offset incom taxes on its own profits. Test-tube baby due in January United Press International NORFOLK — The nation’s first test-tube baby is due in January and the country’s pioneer test- tube baby clinic is ready to expand its operations, the clinic’s co director says. Dr. Howard Jones said Friday the in vitro fertilization process has produced three successful pregnancies at Eastern Virginia Medical School Clinic this year, enough to justify increasing the number of patients accepted by four-fold. The clinic now serves about one patient weekly. Jones announced that the coun try’s first test-tube baby was ex pected to be born Jan. 9, although he continues to conceal the name of the expectant mother. “We are now at the point where this process is ready for more widespread clinical application,” Jones said. Delivering a paper to the Medical Society of Virginia, Jones said “pregnancies are expected with some degree of regularity” from now on and that test-tube babies should soon become acom- have yet produced a successful pregnancy. Jones said the key to hisclinki success has been the use of hor mone injections to induce ovula tion and a change in the time period used to allow the egglo mature before insemination, p He said the clinic, which was established in March 1980, failed to obtain a single, successful pre gnancy after treating 41 patienb during its first nine months of operation. During that period,he said, researchers relied on the normal ovulation cycle and in seminated the egg as soon as it was removed from the womb. In January, ovulation of pa tients was induced with hor mones, a technique developed at an Australian clinic, and the eg was allowed to mature 6 to 12 hours before insemination. Of33 women treated with the new pro cess, Jones said three have been successfully impregnated U mon occurrence. Since Jones’ clinic opened in March 1980, a dozen other such clinics have opened, but none The in vitro fertilization pro cess, pioneered by Drs. RobertC! Edwards and Patrick Steptoe England, has produced babies ii England and Australia. The firs) was Louise Brown, born in Old-ltomobile ham, England on July 25, 1978 Sell it in Battalion Classified 845-2611 J * Thre ;ets a li so her n Unite (HUTCH a bett uses. Joe Hof nn a yea housing le to st me. To fmanck a 198: as a [buy hi "I’ve be ANNOUNCING OUR NEW EXPANDED HAPPY HOUR 2-7 p.m. Daily 2 FOR 1 HIGHBALLS FROZEN DRINKS l 25 3109 Texas Ave., Bryan 823-7470 Open 11-9 Sun.-Thur. 11-10 Fri.-Sat. ^}\adrml Players ‘ys/anteeff! 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