Posted on December 15th, 2010
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which could be passed in the U.S. Senate today or tomorrow before going to the House of Representatives and eventually President Obama for signing, would give business aviation a big boost. The proposal includes 100-percent expensing of investments in capital assets, such as business aircraft, purchased between September 8 this year and December 31 next year. However, this expensing would be more like the current bonus depreciation, and therefore would apply only to new aircraft. Another provision would extend the current 50-percent bonus depreciation to the end of 2012. Both NBAA and GAMA expressed their support for this bipartisan tax agreement. The act adds a significant accelerator to buyers decisions. Companies looking at new aircraft will be more inclined to purchase sooner. Accelerating deliveries will prompt the recall of numerous people who were laid off in aviation manufacturing.
Tags: business aviation, taxes
