In the years following the 9/11 attacks, Congress passed an accelerated depreciation tax incentive plan to boost sales of aircraft. It’s back; and the newly passed program joins some $1.1 billion in airport funding as part of the Obama administration’s economic stimulus package. The general aviation industry has lost a reported total of approximately 11,000 jobs to the current economic crisis, an estimated 7,000 jobs in Kansas, alone. The accelerated depreciation program allows companies that buy aircraft for business purposes to take larger early year deductions based on accelerated depreciation of the asset.
Accelerated Depreciation Back on the GA Radar
Key Takeaways:
- The Obama administration has reintroduced an accelerated depreciation tax incentive for aircraft, a program previously used post-9/11, as part of its economic stimulus package.
- This incentive aims to boost aircraft sales and support the general aviation industry, which has suffered approximately 11,000 job losses, including 7,000 in Kansas.
- The program allows companies purchasing aircraft for business to take larger tax deductions in the early years of the asset's life.
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