Thu, Sep 23, 2010
SOME Relief On The Horizon... But Will It Help?
Our good friends at GAMA have informed ANN that the House
of Representatives has JUST passed the final version of the Small
Business Jobs Act of 2010 which allows businesses to take advantage
of the bonus depreciation tax incentive for general aviation
aircraft purchases and components, including engines and avionics.
GAMA notes that, 'This critically important legislation will help
drive new sales for manufacturers as they continue to recover from
the recession.'
"We are pleased that the House acted so quickly to pass the
final version of this important legislation," said GAMA's President
and CEO Pete Bunce.
"A quick signature from President Obama will allow operators to
take advantage of this provision before the end of the year. As a
proven stimulus to increase sales, we are optimistic that an
extension of bonus depreciation will help re-energize an industry
that continues to struggle with slowed production lines and
diminished customer demand."
Representatives Todd Tiahrt (R-KS) and Chris Carney (D-PA)
played an important role in bringing attention to the need to
extend bonus depreciation in a letter they sent to the House Ways
and Means Committee earlier this year calling for the renewal of
the provision that expired in 2009. "Their attention to this issue
was greatly needed and we appreciate the support they have shown
the general aviation industry," said Bunce.
Todd Tiahrt (R-KS)
The bonus depreciation provision allows a business that
purchases a general aviation aircraft to deduct the normal
depreciation allowance as well as an additional 50 percent of the
depreciable value of the aircraft in the first year after delivery,
instead of spreading it out evenly over five years. This tax
incentive is a proven way to help increase aircraft sales. One
general aviation manufacturer reported that bonus depreciation
accounted for 55 percent of all piston airplane sales in 2009. To
take advantage of this provision, aircraft must be purchased before
the end of the year and placed into service before the end of 2011.
General aviation aircraft components must be purchased and
installed before the end of 2010.
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