U.S. Extends Bonus Depreciation
President Bush signed an economic stimulus plan on February 13 that extends bonus depreciation for new aircraft purchased and placed in service through next year. The legislation makes it possible for purchasers who plan to use their aircraft primarily for trade or business purposes, and thereby qualify for MACRS accelerated depreciation, to write off 50 percent of the purchase price during the first year of ownership. Owners may write off not only the 50-percent bonus depreciation during the first year but also the balance in accordance with the normal MACRS schedule. For an aircraft to qualify for bonus depreciation, it must have a value
of at least $200,000.