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:
- A new accelerated depreciation tax incentive for aircraft has been implemented as part of the Obama administration's economic stimulus package, accompanied by $1.1 billion in airport funding.
- This program, similar to one enacted post-9/11, aims to stimulate the general aviation industry.
- The incentive allows companies purchasing aircraft for business to take larger tax deductions in the early years of the asset's life.
- The initiative seeks to address significant job losses within the industry, which has seen approximately 11,000 jobs cut nationally, including 7,000 in Kansas.
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