WASHINGTON, D.C. — The House of Representatives today passed the final version of the Small Business Jobs Act of 2010 which allows businesses to take advantage of the bonus depreciation tax incentive for general aviation aircraft purchases and components, including engines and avionics. This critically important legislation will help drive new sales for manufacturers as they continue to recover from the recession, according to officials with the General Aviation Manufacturers Association (GAMA).
“We are pleased that the House acted so quickly to pass the final version of this important legislation,” said GAMA’s President and CEO Pete Bunce. “A quick signature from President Obama will allow operators to take advantage of this provision before the end of the year. As a proven stimulus to increase sales, we are optimistic that an extension of bonus depreciation will help re-energize an industry that continues to struggle with slowed production lines and diminished customer demand.”
Representatives Todd Tiahrt (R-Kan.) and Chris Carney (D-Pa.) played an important role in bringing attention to the need to extend bonus depreciation in a letter they sent to the House Ways and Means Committee earlier this year calling for the renewal of the provision that expired in 2009. “Their attention to this issue was greatly needed and we appreciate the support they have shown the general aviation industry,” said Bunce.
The bonus depreciation provision allows a business that purchases a general aviation aircraft to deduct the normal depreciation allowance as well as an additional 50% of the depreciable value of the aircraft in the first year after delivery, instead of spreading it out evenly over five years. This tax incentive is a proven way to help increase aircraft sales, according to GAMA officials. One general aviation manufacturer reported that bonus depreciation accounted for 55% of all piston airplane sales in 2009. To take advantage of this provision, aircraft must be purchased before the end of the year and placed into service before the end of 2011. General aviation aircraft components must be purchased and installed before the end of 2010.
GAMA is an international trade association representing over 65 of the world’s manufacturers of general aviation aircraft, engines, avionics and related equipment. For more information: GAMA.aero