Aircraft Purchased This Year Must Be In Service By The End Of
2011
GAMA on Thursday issued a statement concerning Senate passage of
H.R. 5297, the Small Business Lending Fund Act of 2010. The bill
contains a provision that will permit bonus depreciation on
equipment purchases in 2010 that includes GA aircraft. Aircraft
purchased before the end of 2010 must be placed into service by the
end of 2011 to receive bonus depreciation.
"GAMA wishes to thank Senate Finance Committee Chairman Max
Baucus (D-MT) for his efforts to pass this bill through the
Senate," said GAMA President and CEO Pete Bunce in the statement.
"This incentive is a critically needed measure for bringing back
jobs and boosting economic recovery in our industry."
Bonus depreciation allows a business to accelerate 50 percent of
the depreciable value of a capital investment in the first year
instead of spreading it out over five years and is a proven tool
for increasing aircraft sales. One GA manufacturer reported that
bonus depreciation accounted for 55 percent of all piston airplane
sales in 2009.
Pete Bunce
"Our industry has been waiting for this key measure to be passed
to help in our recovery," said Bunce. "We look forward to swift
passage of this bill in the House and to the president's signature
on this important piece of legislation."
The NBAA joined the chorus Friday. "NBAA applauds today's Senate
action, and urges the House to approve the Senate-passed version
this month to allow companies to take advantage of this
accelerated, or 'bonus,' depreciation before the end of the year,"
said NBAA President and CEO Ed Bolen in a statement. "Allowing
faster capital cost recovery of the purchase of company assets,
including business aircraft, is helpful to business aviation and to
our economy."
NBAA has repeatedly called on Capitol Hill lawmakers to support
legislation to extend accelerated depreciation for investments in
strategic business assets, including aircraft. In addition, NBAA
has urged its Members in the business aviation community to use the
Association's Contact Congress resource to reach out to their
elected representatives and ask them to support accelerated
depreciation bills. Anyone can still write to Congress and
urge full passage of bonus depreciation legislation.
"Accelerated depreciation is a proven investment incentive, and
could significantly benefit the business aviation community," Bolen
explained. "The industry continues to grapple with a slow recovery
from the drop-off in flight activity and aircraft sales, as well as
job losses in this challenging economic climate."
Earlier this year, NBAA joined with more than 80 American
businesses and organizations to send an open letter to House and
Senate leaders calling for a renewal of bonus depreciation that
expired at the end of 2009, to extend the tax benefits to preserve
manufacturing jobs, and at the same time give companies immediate
access to the benefits of asset investments, including the purchase
of business aircraft.
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