Bonus depreciation is included in the Senate’s Small Business Tax Bill.
H.R. 5297, the Small Business Lending Fund Act of 2010, contains a provision that permits bonus depreciation on equipment purchases in 2010, including general aviation aircraft. Aircraft purchased before the end of 2010 must be placed into service by the end of 2011 to receive bonus depreciation.
“This incentive is a critically needed measure for bringing back jobs and boosting economic recovery in our industry,” said Pete Bunce, president and CEO of the General Aviation Manufacturers Association.
Bonus depreciation allows a business to accelerate 50% of the depreciable value of a capital investment in the first year instead of spreading it out over five years — and is a proven tool for increasing aircraft sales, according to GAMA officials. One GA manufacturer reported that bonus depreciation accounted for 55% of all piston airplane sales in 2009.
“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.”