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NBAA Joins Effort to Renew Tax Incentive for Business Aircraft Purchases
May 23, 2014
NBAA and more than 150 other associations and coalitions have signed a letter to the U.S. Senate urging swift passage of a bill to restore a host of tax incentives that expired in 2013, including accelerated depreciation on purchases of business aircraft.
"These tax provisions benefit a wide range of taxpayers, including associations, businesses, individuals, community development organizations and non-profit organizations and are important to U.S. jobs and the broader economy," the letter states. "The lack of timely action to extend these provisions injects instability and uncertainty into the economy and weakens confidence in the employment marketplace."
Spearheaded by the National Association of Manufacturers, the letter was sent electronically to every senator's legislative director on May 20. Review the letter. (PDF)
The bill, formally known as the "Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act," enjoys broad bipartisan support. It was approved by the Senate Finance Committee in April, but has stalled in the full Senate over a procedural dispute. Read more about the Senate bill.
With the House considering specific pieces of legislation to make some of the provisions permanent, the letter calls on the Senate to pass its bill "as soon as possible" to ensure the two chambers do not wait until late this year to reach agreement on a final measure.
The "extension of the expired provisions should not be delayed until the end of the year since companies are making decisions right now related to taxes that will have an immediate impact on the economy," the letter explains.
Accelerated or "bonus" depreciation allows for additional depreciation in the first year after a general aviation aircraft or other capital asset is purchased. Owners of these assets are not entitled to more depreciation, but are allowed to obtain the benefits of depreciation more quickly. This policy encourages companies to invest in equipment that makes them more productive and competitive. For business aviation, which directly or indirectly employs more than one million people in the United States, accelerated depreciation has been proven to stimulate the industry, produce jobs and lead to new aircraft deliveries.