Pending Tax Legislation Would Benefit Business Aviation

A bill passed by the U.S. Senate yesterday would increase tax benefits for buyers of new aircraft, and follow-on legislation would extend the time frame of those benefits even further. The so-called Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 has passed muster in the Senate, and will now go on to the House and finally to President Obama for signing into law. Under the new provisions, buyers of new business aircraft could claim 100-percent expensing of their investment in aircraft bought between Sept. 8, 2010 and Dec. 31, 2011. The new legislation works similarly to the current bonus tax depreciation rules. A follow-on provision would extend the 50 percent bonus depreciation through the end of 2012. The bipartisan tax bill, designed to stimulate the continued growth of the economy, has the staunch support of business aviation advocacy groups, including the General Aviation Manufacturers Association and the National Business Aviation Association.