Contact: Dan Hubbard, (202) 783-9360, email@example.com
Washington, DC, Feb. 13, 2015 – The National Business Aviation Association (NBAA) today welcomed a vote by the House of Representatives to make several small-business tax provisions permanent, including the ability to expense up to $500,000 in capital investments.
The “small-business expensing provision” encourages investments in equipment, such as aircraft parts, up to a certain value by not subjecting them to standard depreciation. Instead, they can be expensed in the year they are purchased, similar to many other business expenses.
This small-business expensing allowance has been increased steadily since 2003, rising from $25,000 to $500,000 in 2014. But the provisions have been temporary, and on Jan. 1, the amount reverted back to $25,000 for the 2015 tax year. America’s Small Business Tax Relief Act of 2015, which was sponsored by Rep. Pat Tiberi (R-12-OH) and approved by the House today, would set the limit at $500,000 and index it to inflation going forward.
“NBAA welcomes progress on key issues, such as more flexible tax provisions, which encourage small businesses to invest and strive for growth,” said NBAA President and CEO Ed Bolen. “Making the small-business expensing provision a permanent fixture of the tax code will stimulate growth for the many small businesses that help general aviation generate $219 billion in annual U.S. economic activity.”
The expensing provision, which still must be approved by the Senate and signed into law by President Obama, is one of several key tax-related issues that NBAA is monitoring closely. Another – accelerated or “bonus” depreciation, which helps aircraft owners realize depreciation benefits more quickly – expired on Dec. 31. Rep. Tiberi was one of the main supporters of a bill in the last Congress that would have made bonus depreciation permanent, and NBAA is urging lawmakers to revisit the issue during the 114th Congress. NBAA also is calling on Congress to reject the Obama Administration’s provision in its fiscal year 2016 budget request to lengthen the tax-depreciation period for business aircraft from five years to seven.
“Tax policies like accelerated depreciation and small-business expensing help prime the economic pump and bolster American competitiveness by giving businesses access to the latest equipment and encouraging substantial capital investment in assets such as aircraft,” Bolen said. “Expanding businesses mean more jobs and a stronger economy, which are outcomes that benefit everyone.”
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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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