An unusually generous tax break aimed squarely at general aviation aircraft manufacturers and their business customers is now in effect and the General Aviation Manufacturers Association is advising those with aircraft acquisition plans to act within its fairly broad parameters. In a podcast interview, GAMA spokesman Paul Feldman suggested the bonus depreciation measure signed into law by President Barack Obama in December might be a rare tax break that may not be repeated anytime soon. “I would act on it,” he said.
In case you missed it, the measure allows a 100-percent depreciation write-off for new aircraft and many parts and modifications in 2011. It also recognizes the long production cycle of aircraft and will allow 2012 deliveries of aircraft ordered in 2011. Feldman said the impact of bonus depreciation is considerable and OEMs report as much as half their business is directly related to measures like this when they’re in force.
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