Extends Tax Provision Through 2015

President Barack Obama late last week signed into law legislation that provides a one-year renewal of expiring tax provisions, including accelerated, or "bonus" depreciation for any new aircraft purchased in 2014 and placed into service by the end of 2015.

"NBAA welcomes this bipartisan bill to renew tax policies such as accelerated depreciation and commends members of both parties for working together to preserve jobs and strengthen American competitiveness," said NBAA President and CEO Ed Bolen (pictured).
 
Accelerated depreciation allows businesses to take a first-year deduction equal to 50 percent of a qualified asset's cost basis. The tax-extender bill also renews the increased limitations for Section 179 expensing, allowing businesses to expense, rather than depreciate, assets such as aircraft parts.
 
NBAA has a web article available on the particulars of the bonus depreciation portions of the legislation, which is titled the Tax Increase Prevention Act of 2014. View NBAA's web article on qualifying for 50% bonus depreciation.
 
"The tax policies in this bill give American businesses immediate access to the most advanced equipment and uphold our manufacturing sector by encouraging investment in assets such as aircraft," said Bolen.
 
While accelerated depreciation expired at the end of 2013, NBAA and a broad coalition of industry groups backed efforts in Congress to renew it and other tax extenders retroactively and in time for the 2014 tax-filing season.

FMI: www.nbaa.org