House Aerospace Leader Optimistic About Tax Changes

Q: NBAA members are keen for Congress to address the expiration of the Tax Cuts and Jobs Act (TCJA). What do you believe are the chances for the restoration of 100% bonus depreciation on the purchase of aircraft? Additionally, what other provisions do you anticipate might be included in the bill that would benefit business aviation?

One challenge we face is the standard terminology – we should stop referring to “100% bonus depreciation” and instead refer to it as immediate expensing. It has nothing to do with bonuses and the terminology is misleading.

With that said, many lawmakers in both parties agree that we need to act quickly in 2025 to restore and even expand the positive aspects of TCJA, including immediate expensing. The biggest question is timing, as Congress weighs several legislative priorities from the new Trump administration. But I do think that we’ll be able to pass immediate expensing before the end of 2025.

Additionally, I’ll be working to ensure immediate R&D expensing is restored, which is a major benefit to aircraft manufacturing and many other innovation sectors across the country. I chair the U.S. Innovation Tax Team, part of the Ways and Means Committee, and have been advocating for immediate R&D expensing along with other tax provisions that encourage homegrown research and development. I also believe that a priority in reauthorizing the Trump tax cuts is to make immediate expensing and R&D expensing permanent to provide certainty for businesses.

Q: NBAA has joined the aviation industry in its commitment to achieve net-zero carbon emissions by 2050 through various strategies, including sustainable aviation fuel (SAF). What are your thoughts on supporting the development, production and widespread use of SAF?

Over the last half-century, we have witnessed advances in the aviation industry that have made air travel more fuel-efficient. The emergence and rapid growth of sustainable aviation fuel in recent years offers a new and exciting opportunity to continue to reduce emissions from air travel. There are several factors that could impact how the SAF industry will develop in the future, but I’m encouraged by the enthusiasm and discussion I’ve seen in the aviation sector around advancing innovation to make air travel more energy efficient.

Q: Soon, U.S.-made zero-emission, electric air taxis are expected to begin earning FAA type certification and entering service. How important are electric aircraft and what more should be done to foster their success?

In fall 2024, I was in Silicon Valley as chair of the U.S. Innovation Tax Team and was able to visit with one organization developing electric air taxis. U.S. innovators are eager to continue building aircraft of the future that will revolutionize transportation in the United States – and around the world. The United States must be a leader in this space, and during my time as co-chair of the House Aerospace Caucus, the caucus has worked to promote American leadership in innovative aerospace technologies while maintaining the gold standard in global aviation safety.

The emerging electric air taxi sector also underscores the need for a tax code that fosters and encourages innovation. That’s why the extension and expansion of TCJA is so important – businesses large and small have demonstrated the importance of restoring or strengthening R&D expensing, GILTI (Global Intangible Low-Taxed Income) and FDII (Foreign-Derived Intangible Income).

We also must actively work to safeguard U.S. intellectual property from bad actors. Unfortunately, countries like China have purposefully stolen IP from U.S. companies as they have worked to make advances in aviation and unmanned aircraft. This isn’t just about competition – there are real security threats when foreign bad actors are using American innovation to develop and deploy advanced aviation technology. That’s why we must implement the right policies that encourage R&D here in the United States while also deterring adversaries.

Q: As a lawmaker and Kansan from the Air Capital of the World, you’ve been directly involved in the FAA reauthorization process. What are your thoughts on the business aviation and GA elements of the most recent 2024 FAA reauthorization?

FAA reauthorization was a major bipartisan win in the 118th Congress, and I was thrilled when the Securing Growth and Robust Leadership in American Aviation Act passed the House in July 2023 under Chairman Sam Graves’ leadership. One of the provisions I am most excited about has to do with our aviation workforce and how we preserve and grow the skilled aviation workforce around the country. The bill expanded the workforce development program that was first introduced in the 2018 FAA reauthorization for pilots and aviation maintenance workers.

Now, the grant program will include aviation manufacturing technical workers and aerospace engineers. The Securing Growth and Robust Leadership in American Aviation Act also raised the authorization level for each of the programs so they can award grants to more eligible applicants. This is fantastic news, as the program was hugely popular, and, as a result, vastly oversubscribed after the 2018 reauthorization. The expansion of this program for the aviation manufacturing workforce was my main priority for the Air Capital as the committee gathered input from members. Looking forward, we need to ensure this program receives funding and new applicants have an opportunity to apply.

Q: What more can be done to attract and train new aviation workers who will be needed in the coming years?

For decades, we’ve told young people they have to go to college and earn a degree regardless of their interests or aptitudes. While that works for some, there are many others who could have a good-paying job and enjoy being a welder or maintenance technician. So first we need to change the way we talk about expectations after high school.

I have to tout what Kansas and our region have done in this area. Kansas has implemented a program for high school students to earn a technical certificate while still in high school, strengthening our workforce and providing students with job opportunities upon graduation. The aviation industry has worked closely with school districts to build curriculum and provide guidance so that these students can work in the Air Capital of the World, maintaining and expanding our workforce.

Also, the aviation industry in South Central Kansas has collaborated with Wichita State University Tech to provide a clear path from the classroom to the manufacturing floor. These models are working and could be replicated across the country, but they require willing participants in education and industry.

As it relates to Congress, the expansion of the workforce grant programs for aviation maintenance technical workers, pilots, aviation manufacturing workers and aerospace engineers will be critical to begin to address the workforce challenges we are facing in the industry. We must continue to build on the success of those workforce development programs as we face even greater challenges ahead.