GAMA: New Tax Law "Critical" To GA Recovery
A bill Friday signed into law by President Barack Obama contains provisions "that are critical to the recovery of the general aviation manufacturing industry," GAMA President and CEO Pete Bunce said in a statement issued the same day. The president's signature Friday afternoon has made the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 the law of the land. According to Bunce, it allows for 100 percent depreciation of capital investments, "including aircraft engines, avionics, and other upgrades to aircraft" during 2011 and 50 percent in 2012. General aviation aircraft, said Bunce, because of their longer production cycle, "will also be eligible for 100 percent depreciation in 2012 and 40 percent in 2013." GAMA says the new law will boost job growth in 2011 and beyond, and also provides specific additional incentives for manufacturers that will help them start growing again.
Buyer-side tax advantages aside, the law extends through the next two years research and development tax credits for manufacturers. GAMA says it will also allow businesses to receive credit for the current year's research expenses and helps companies plan development in 2011. "We could not be more pleased by the bipartisan effort that resulted in a swift passage of this tax bill," said Bunce. According to GAMA, the law provides incentives and certainty that will increase demand and allow aviation manufacturers to grow by encouraging investment.