Passed into law in December 2017, the Tax Cuts and Jobs Act has implications for business aircraft owners and operators, and the association is working to answer members’ questions. “NBAA requested guidance on three bonus depreciation issues: definition of property previously used by the tax payer, the binding written contract rules for self-constructed property and the definition of binding written contract,” said John Hoover, a partner at Holland & Knight. Hoover, vice chair of the NBAA Tax Committee, discusses tax reform provisions impacting business aviation in this week’s NBAA Flight Plan podcast.
As a direct result of COVID-19, business closures and travel restrictions, aircraft purchased in 2020 could be ineligible for bonus depreciation, and depreciation recapture could be triggered on aircraft purchased in prior years.
Our industry continues to seek ways to improve upon its already noteworthy record of environmental responsibility, and chief among those efforts is promoting the use of sustainable aviation fuels (SAF) that burn cleaner than straight Jet A.