Bonus Depreciation Helps OEMs
Bonus depreciation is helping the world's largest general aviation manufacturer sell airplanes. Cessna Finance Corp. President Tom Low said there has been a noticeable increase in all facets of the business since the government extended bonus depreciation last September. In a podcast interview, Low said those who qualify (must have taxable income and be U.S. taxpayers) can take a sizeable chunk off their taxes with the provision and Cessna is helping customers to leverage the savings even farther if it's a Mustang they're looking for.
Low said the company introduced an offer at the National Business Aviation Association convention that involves Cessna making the first year's interest and principal payments. Coupled with bonus depreciation, it amounts to a 25-percent discount on the price of the entry-level jet. While not everyone is in the market for a jet, Low said the tax break is affecting piston sales, too. Low said the market has attracted interest from one of the country's biggest banks. Bank of America is active in airplane financing at rates and terms attractive to many qualified buyers, Low said.