U.S. Congressmen Todd Tiahrt (R-Kan.) and Chris Carney (D-Pa.) recently sent a letter to the House Committee on Ways and Means requesting an extension of the current accelerated “bonus” depreciation incentive for aircraft purchases through Dec. 31 and placed in service by Dec. 31, 2011.
“We have seen in the past how bonus depreciation is beneficial for both aircraft companies and customers,” Tiahrt said. “We should not delay in extending this valuable business incentive that will help boost sales for the aviation industry and create immediate economic benefits.”
The letter chronicles the GA industry’s troubles in 2009, noting that sales of piston aircraft declined nearly 55%, which led manufacturers to cut nearly 20,000 jobs. “Although the industry is still seeing a decline in new orders, manufacturers have reported that bonus depreciation was a deciding factor in many of the orders they receive,” the letter states. “In fact, one manufacturer reported that 55% of the piston aircraft orders it received last year were attributed to bonus depreciation.”
Tiahrt was successful in requesting and obtaining a one-year extension of accelerated depreciation last year as part of the American Recovery and Reinvestment Act to help stimulate the struggling aircraft industry economy. He was also successful in getting accelerated depreciation language signed into law following the Sept. 11, 2001, terrorist attacks.