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December 19, 2014
In general terms, bonus depreciation may allow aircraft owners to realize the depreciation benefits of an eligible asset more quickly. Aircraft owners are not entitled to more depreciation, but are allowed to obtain the benefits of depreciation more quickly. When available, bonus depreciation can be utilized by owners of many capital assets and is not an aviation specific benefit.
The U.S. House and Senate have approved extensions of bonus depreciation on numerous occasions, which affirms what many industry analysts and economists understand — that businesses are unable to fully deduct the initial cost of capital investments, including those made in aircraft, as they do with labor and raw material. Instead, they must write these costs off over many years, and, as a result, never recoup the full value of investments that drive economic growth.
Bonus depreciation delivers long-term (not short-term) stimulus to industries like general aviation, which provides high-skill, and high-paying, jobs for more than 1.2 million Americans, and is responsible for generating $150 billion in economic activity in the United States annually. It also gives American companies immediate access to the most advanced equipment, including aircraft, making them more competitive, while preserving jobs in aviation-related manufacturing, one of the few industries that contributes positively to America’s trade balance.
The Tax Increase Prevention Act of 2014, signed into law on Dec. 19, 2014 further extended 50 percent bonus depreciation through the end of 2014. This means that new aircraft purchased in 2014 are eligible to qualify for 50 percent bonus depreciation. If there is a written binding contract in place to purchase the aircraft by Jan. 1, 2015 and the aircraft qualifies as "Certain Aircraft" or "Long Production Period" as defined in the Internal Revenue Code, the aircraft can be placed in service during 2015 and still qualify for 50 percent bonus depreciation.
- Dec. 17, 2014
- NBAA Commends Senate Vote Renewing Accelerated Depreciation
- Dec. 9, 2014
- Responding to The New York Times, Bolen Supports Extension of Tax Provisions
- Dec. 4, 2014
- NBAA Applauds House Vote to Renew Accelerated Depreciation on Business Assets, Including Aircraft
- Nov. 20, 2014
- NBAA Among 500 Industry Groups Making Push for Extending Tax Provisions
- May. 23, 2014
- NBAA Joins Effort to Renew Tax Incentive for Business Aircraft Purchases
- Court Holds Aircraft Not “Placed in Service” Until Completion of Post-Purchase Modifications
- Accelerated Depreciation Extended for 2013 (January 7, 2012) by Richard C. Farley, Jr
- Aircraft Acquired in 2012 May be Eligible for 100% Bonus Depreciation (December 3, 2012) by Richard C. Farley, Jr
- Bonus Depreciation: New Revenue Procedure Expands Planning Opportunities (July 18, 2011) by Victor Charles Anvick, ATIS Group LLC
- Congress Approves Expanded Tax Benefits For Business Aircraft Purchase (December 17, 2010)
- Bonus Depreciation Reintroduced for New Aircraft Purchasers (September 2010) by Ed Kammerer, Hinckley Allen & Snyder LLP
- Bonus Depreciation: Deduction at the State Level (March 2004)
- Depreciating Corporate Aircraft (June 2001) by Troy A. Rolf, Galland, Kharasch, Greenberg, Fellman & Swirsky, P.C.