Aircraft Bonus Depreciation Extension Promoted in Congress

At a time when the word, 'bipartisan' might as well be part of a dead language, members of the House on both sides of the aisle have rallied behind extending the bonus depreciation incentive that expired last December. Late last month, Representatives Todd Tiahrt (R-Kan.) and Chris Carney (D-Pa.) sent a copies of a letter to Ways and Means Committee chairman Charles Rangel (D-NY) and ranking member Dave Camp (R-Mich.) asking for support for extending the economic stimulus move — specifically mentioning aircraft purchases. Under the rule, companies or individuals can claim up to 50 percent depreciation on certain equipment purchases (including aircraft) in the first year of use, provided they were used primarily for business. The incentive has been cited as a significant boost for aircraft sales. Tiahrt said, "We have seen in the past how bonus depreciation is beneficial for both aircraft companies and customers. We should not delay in extending this valuable business incentive that will help boost sales for the aviation industry and crate immediate economic benefits."