Reps. seek extension for bonus depreciation incentive
Because the general aviation industry is still struggling through these tough economic times, Reps. Todd Tiahrt (R-Kan.) and Chris Carney (D-Pa.) are asking the House Ways and Means Committee to extend the bonus depreciation incentive for aircraft purchases through Dec. 31, 2010, and allow in-service placement until Dec. 31, 2011.
The committee had included an extension for 2009 aircraft orders in the American Recovery and Reinvestment Act.
“Sales of piston aircraft declined nearly 55 percent [in] 2009, and overall industry billings were down by 21 percent. General aviation manufacturers have had to cut nearly 20,000 jobs since the end of 2008 due to the decline in new orders,” the congressmen explained.
They later pointed out that the bonus depreciation provision was a deciding factor in many orders GA manufacturers received: “In fact, one manufacturer reported that 55 percent of the piston aircraft orders it received last year were attributed to bonus depreciation.”
The two concluded that granting an extension of the provision would “provide a critical incentive for customers and help offset the continued softness and erosion in the general aviation market.”
February 25, 2010