As final tweaking of the Republican tax overhaul bills continue, the NBAA is urging members operating aircraft of all shapes and sizes to contact their Congressional representatives to make their concerns known. At stake are provisions related to immediate expensing, like-kind exchanges and taxes applicable to aircraft management companies.
For example, while the House and Senate versions of dealing with depreciation differ slightly, both include a provision that allows for immediate expensing of business property placed in service after September 27, 2017 and before January 1, 2023.
The House version covers both new and pre-owned equipment, while the Senate version considers only new equipment. Both bills however, remove the like-kind exchange provisions that allowed business owners to swap equipment and defer taxable gain on the sale.
Finally, the Senate bill clarifies an existing law on taxes applicable to aircraft management services. It states that aircraft management fees are paid for services provided, not transportation. That means management fees are exempt from the airline ticket tax and only liable for fuel taxes.
Reports indicate the legislation probably won’t come to a vote this week since conferencing is just getting organized, but there’s little time left to meet the President’s call for legislation on his desk by Christmas. Once both the House and Senate agree on the same bill, it’s expected to be sent to the White House for the President’s signature.
The NBAA’s toll-free action line to contact members of Congress is 833-GA-VOICE.