Despite his rhetoric during a presidential debate that “corporate jets” should not get tax breaks, President Obama signed a bill–the American Taxpayer Relief Act of 2012–last week that extends the 50-percent accelerated depreciation for capital goods, notably including business aircraft, through the end of this year.
Accelerated depreciation for private aircraft became a hot topic again this past June when President Obama repeatedly cited it as a prime example of special tax breaks for the rich he wanted to eliminate.
General aviation groups hailed the passage late last month of a bonus depreciation bill, H.R.5297, that will allow for accelerated depreciation of business aircraft. The House of Representatives already passed this legislation in June, but had to vote on it again on September 23 because the Senate’s version approved a week earlier contained minor differences.
General aviation groups today hailed the passage of a bonus depreciation bill that will allow for accelerated depreciation of business aircraft. The Senate passed its version shortly after legislators returned from their summer recess last week. The House of Representatives already passed similar legislation in June, but had to vote on the Senate version since it contained minor differences.
NBAA said the Senate approved legislation on Friday that includes accelerated depreciation for “strategic business purchases this year,” which includes business aircraft. “NBAA applauds the 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.
Although support for accelerated depreciation for major equipment purchases is growing, Congress left for its summer recess without making it so. Last month, NBAA senior vice president for government affairs Lisa Piccione told the Greater Washington Business Aviation Association (GWBAA) that NBAA has joined 80 other business organizations in pushing to see accelerated depre ciation renewed in pending legislation in the Senate.
With the rancor over business jet use now receding in Congress’s rear-view mirror, House and Senate lawmakers are jumping in line to extend accelerated depreciation for major equipment purchases– including general aviation aircraft–in 2010.
For business aviation, the latest $787 billion economic stimulus bill–H.R.1, the “American Recovery and Reinvestment Act”–giveth with one hand and taketh away with the other.
Sparta, N.J.-based business aviation consultancy Brian Foley Associates today said it believes the recovery of the business jet market will be sooner than previous estimates, despite “being nowhere near the bottom” of the current market cycle. “It’s hard to think recovery in this environment, but there’s reason to believe that we may come out of this a little sooner than widely expected,” noted company president Brian Foley.