An extension of 100-percent bonus depreciation was stripped from the bill to extend payroll tax relief. The bill was approved by both houses last week and is now ready for the president's signature. It's a derivative of the same legislation that caused a major political crisis before Christmas as the polarized Congress finally agreed to a short-term extension of the tax cut and put off consideration of the entire bill for two months. In its original form, 100-percent bonus depreciation for business purchases was extended for another year but the bill that was finally approved does not contain that language.
Aviation tax consultant Daniel Cheung told AVweb in earlier interviews that the measure is a proven incentive for moneymaking businesses to invest in equipment like airplanes. He said there were a lot of businesses that did well in 2011 and could have taken advantage of bonus depreciation. "We'll have to hope this is brought up in another bill," Cheung said.