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NBAA Urges Senate Support for 'Accelerated Depreciation' Proposal to Spur Recovery
Washington, DC, July 23, 2010 — National Business Aviation Association (NBAA) President and CEO Ed Bolen today urged swift passage in the Senate of an amended proposal to renew accelerated, or "bonus," depreciation for investments in strategic business assets, including aircraft.
"The business aviation community has joined with many other business groups across the country in supporting this proven incentive for companies of all sizes to accelerate replacement and purchases of essential equipment, including general aviation aircraft," said Bolen.
The Senate is considering amendments to the House version of the Small Business Tax legislation that would include a variety of incentives aimed at boosting U.S. economic recovery.
"This legislation will also strengthen the economic viability of all the jobs that are created by the use of those aircraft – the associated businesses and industries in communities surrounding general aviation airports and facilities," Bolen said.
In written testimony to the U.S. House Committee on Small Business earlier this month, Bolen wrote that extending accelerated depreciation would "help promote the sale of business aircraft, and preserve the good-paying manufacturing jobs that come with those sales."
Equally important, Bolen noted, is that stimulating companies to invest in general aviation aircraft for business purposes also "enables more American companies to continue using business aviation to succeed."
"We look forward to working with the Congress and the Administration in the coming days to obtain legislation extending accelerated depreciation as part of the recovery effort by continuing the virtuous cycle of stimulating a vital industry through tax incentives," Bolen said.
Earlier this year, NBAA joined with more than 80 U.S. businesses and organizations in a joint letter urging House and Senate leaders to renew the tax incentive as one way to help bring back vital manufacturing jobs and economic activity.
In addition, NBAA commended the bipartisan group of House members who recently sent a letter urging the House Ways and Means Committee to incorporate bonus depreciation in any final version of the pending legislation.
The manufacture and use of business aircraft supports more than one million jobs and contributes positively to the nation’s trade balance. Nevertheless, a continuing economic recession has weighed heavily on the industry, which over the past year has witnessed a raft of layoffs among aircraft manufacturers. Retaining accelerated depreciation would help incentivize the purchase of general aviation aircraft, and the jobs and other benefits that come with it.Studies show that the most successful companies use general aviation aircraft because it is a proven "efficiency multiplier" that permits company employees to work together en route, make effective use of time, including visiting multiple locations in a single day.
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Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful. The Association represents more than 8,000 companies and provides more than 100 products and services to the business aviation community, including the NBAA Annual Meeting & Convention, the world's largest civil aviation trade show. Learn more about NBAA at www.nbaa.org.
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