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.
Specify women’s size(s): □ Small □ Medium
□ Large □ Extra Large
Name
Address
City
State
Zip
No purchase required. Allow 4-0 weeks
for delivery. Offer good in Continental
U.S. only. Void where prohibited by law.
Michigan residents add sales tax. Offer
expires August 31, 1982.
©1981. Imported and bottled
by Hiram Walker & Sons, Inc.,
Burlingame, CA. Tequila, 80 Proof.
Product of Mexico.
Two Fingers is all it takes.
WORLD”
HENCE!
Electrical Engineers Mechanical Engineers
Physicists
If you’re ready to begin your technical career, but aren’t looking forward to a
pencil and paper pushing existence, we want to tell you about a highly unusual
profession.
Essentially, we’re the people who make it possible for energy producers to
evaluate the productivity of well sites. Our equipment measures resistivity,
conductivity, acoustic travel time, radioactivity and various other physical
characteristics of the well bore.
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!
AUDITIONS
iortfo
l~ Annual
SHSC SHpdriyal Dinners
Please 6rmy aprcyxireJmmoloyae
Also nceefeef :
Uuyylens
DHayiCians
‘fortune Tellers
Sign-ups aruf information, aval ladle in tAeMSC,Hearn
21b N or at 845-151$. Sjxmserecf 3y 94SC Council.
TOC
|CORNEf
DISC
AVAIL,
The
eve]
Prej
as i
And
froi
evei
M'**}
Drasaar Atlas Is An Equal Opportunity Employar M/F