GAMA urges swift passage of bipartisan tax cuts
The General Aviation Manufacturers Association (GAMA) is calling on Congress to swiftly pass President Barack Obama’s bipartisan tax agreement, which contains provisions seen boosting aircraft production and restoring industry jobs.
The package would let businesses depreciate 100 percent of capital investments made in 2011, and 50 percent of capital investments made in 2012. Aircraft engines, avionics, and other components would be eligible. Aircraft deliveries would qualify for 100 percent depreciation in 2012 and 50 percent in 2013.
A second provision expected to benefit general aviation extends the research and development tax credit for 2010 and 2011. The industry expects the write-offs to provide needed incentives for technological advancements.
“We support this agreement because it contains two key provisions that will create needed growth in general aviation manufacturing,” said Pete Bunce, GAMA’s president and CEO, in a Dec. 13 news release. “These proposals are extremely well-targeted to create jobs, stimulate innovation, and get production lines moving again at manufacturing plants.”
The Senate is currently considering the new tax-cut package with House action expected to follow.
“This tax package will benefit the general aviation community and create jobs in an industry that is a vital part of our national economy,” said Lorraine Howerton, AOPA vice president of legislative affairs.
The new measures would allow GA businesses to sustain momentum from other tax breaks recently enacted to stimulate production and sales. On Sept. 27, the Small Business Jobs Act was signed into law, with a provision extending so-called bonus depreciation into 2010. Bonus depreciation allowed businesses to write off 50 percent of the cost of a capital asset in the year it was purchased.
Bunce said he hoped that Congress “will not miss this tremendous opportunity to strengthen the general aviation manufacturing industry.”
December 14, 2010