Advocates Say Tax Plan Good For GA
The tax bill now working its way through Congress will help to boost manufacturing and restore lost jobs in the general aviation industry, the General Aviation Manufacturers Association said this week. The plan will also provide tax benefits to companies that invest in business aircraft, according to the National Business Aviation Association. Businesses will be allowed to expense 100 percent of their investments in new capital assets through Dec. 31, 2011, retroactive from Sept. 8, 2010, plus claim a "bonus" depreciation allowance of 50 percent during 2012, said NBAA. In addition, the bill extends the research and development tax credit for two more years, says GAMA. "These proposals are extremely well-targeted to create jobs, stimulate innovation, and get production lines moving again at manufacturing plants," according to GAMA CEO Pete Bunce.
Investments eligible for the depreciation credit include aircraft, engines, avionics and other upgrades. "We believe the expensing provision will encourage sales of airplanes, engines, and avionics in a market that continues to experience a very slow recovery from the recession," said Bunce. "It will also benefit companies and employees of maintenance and completion centers that overhaul aircraft and install equipment." The R&D credits also have been "very effective" at encouraging technical advancements and sustaining economic growth in the industry, according to GAMA. The tax plan won a positive vote from a Senate committee on Monday, and is expected to pass in both the House and Senate by the end of this week.