Senate OKs Tax Break For Aircraft Sales
The Senate has OK'd the continuation of a tax break for companies that buy airplanes before the end of this year, and both the National Business Aviation Association and the General Aviation Manufacturers Association welcomed the news. The tax break, known as "bonus depreciation," allows companies to take a bigger tax deduction in the first year of ownership rather than spreading it over five years. One general aviation manufacturer said the provision helped close 55 percent of its aircraft sales last year, according to GAMA. "This incentive is a critically needed measure for bringing back jobs and boosting economic recovery in our industry," said GAMA President Pete Bunce. NBAA President Ed Bolen called on the House to quickly approve the House bill to allow time for sales to close before the end of the year.
"Accelerated depreciation is a proven investment incentive, and could significantly benefit the business aviation community," Bolen said. Aircraft purchased before the end of 2010 must be placed into service by the end of 2011 to use the bonus depreciation option. "Our industry has been waiting for this key measure to be passed to help in our recovery," said Bunce. "We look forward to swift passage of this bill in the House and to the president's signature on this important piece of legislation."