Economic Stimulus Bill Could Mean Big Savings On Planes

Diamond Aircraft wants anyone considering a new-aircraft purchase to take heed of recently-passed US legislation, that offers a great opportunity for tax savings on aircraft used for business travel. To help customers benefit as soon as possible -- preferably for the purchase of a new Diamond aircraft, natch -- Diamond distributors announced this week the Diamond Tax Advantage Program.

The planemaker tells ANN that for any Diamond ordered and delivered between March 4, 2008 and April 15, 2008, Diamond distributors will also offer $3,000 in cash-back incentive, which can be used to pay for the tax and legal services needed to take advantage of this tax savings opportunity. Customers not eligible for tax savings can apply for a training or fuel credit in the same amount.

Savings offered by the tax plan, combined with dealer incentives, could represent tax write-off opportunities of as much as $300,000 on a new DA40 XLS, according to Diamond.

"This tax law change is a great opportunity, especially for people who can act now. By taking delivery of their new Diamond by April 15, buyers can immediately reduce their estimated tax payments for the rest of 2008 for qualifying purchases," said Angelo Fiataruolo, General Manager of Kansas City Aviation Center. "We encourage people to act now, and not wait until December: the sooner you take delivery of your aircraft, the quicker you get the tax benefits. The new tax opportunity is the best we have seen in a decade -- we expect a high volume of tax-driven purchases this year."

The Recovery Rebates and Economic Stimulus for the American People Act 2008 economic stimulus bill provides both 50% bonus depreciation on new aircraft purchases, and an expanded maximum $250,000 expensing election for taxpayers who invest less than $1,050,000 in new or used capital assets.

"A DA40 XLS is a smart aircraft choice at any time -- with a 10 gph fuel burn, and low insurance costs, it's an aircraft a CPA can approve of, even without special incentives. Now, with this extraordinary tax treatment, we expect an even stronger demand," said Fred Ahles, President at Premier Aircraft Sales, the largest Diamond distributor.

"Last time we had tax incentives like this, we ran out of inventory long before the year was over, which is why we encourage people to act now."

FMI: www.diamondaircraft.com, www.diamondair.com/taxopportunity