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NBAA Welcomes Senate Committee's Action to Renew Tax Incentive on Business Aircraft Purchase
Contact: Dan Hubbard, (202) 783-9360, firstname.lastname@example.org
Washington, DC, April 3, 2014 – The National Business Aviation Association (NBAA) today welcomed the Senate Finance Committee's completion of work on legislation that would restore for two more years a host of tax incentives that expired in 2013, including a commonly recognized incentive – "bonus depreciation" – on the purchase of aircraft and other assets used by businesses.
"NBAA is pleased that the Senate Finance Committee has included in its tax-policy proposal the ways in which tax incentives like bonus depreciation can be applied to investments in strategic business assets, including aircraft," said NBAA President and CEO Ed Bolen.
"Economists have long recognized that allowing for additional depreciation, in the first year after the purchase of an asset, is an effective way to motivate people and companies to make upgrades," Bolen continued. "When applied to business aircraft purchase, bonus depreciation gives companies immediate access to the efficiency productivity, competitive and other benefits that come with the asset’s use, while also helping to preserve jobs in a key American manufacturing sector."
The legislation, which packages a series of tax "extenders," would apply to "property placed in service after Dec. 31, 2013, in taxable years ending after such date." Qualified property with a modified accelerated cost-recovery system period of seven years or less must be placed in service before Jan. 1, 2016. For "certain longer-lived and transportation property," the in-service deadline would be Jan. 1, 2017.
Qualified property placed in service during the allotted period would be allowed an additional first-year depreciation deduction equal to 50 percent of its adjusted basis. Property that meets the requirements for the additional first-year depreciation deduction may also qualify for first-year depreciation equal to 100 percent of the qualified property’s adjusted basis.
Senate Finance Committee Chairman Ron Wyden (D-OR) indicated that the bill would be a one-time extension.
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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 10,000 companies and provides more than 100 products and services to the business aviation community, including the NBAA Business Aviation Convention & Exhibition, the world's largest civil aviation trade show. Learn more about NBAA at www.nbaa.org.
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