A tax incentive intended to boost sales of big-ticket business equipment, including aircraft, is among a package of tax provisions approved by both the House of Representatives and the Senate. The measure has been sent to the president for his signature.
The general aviation community and other manufacturing sectors have pushed for tax relief, including renewal of accelerated depreciation. Under the measure, businesses that purchase aircraft or other equipment in 2014 could deduct 50 percent of the cost basis in the first year, instead of spreading it out over many years. The measure would extend the accelerated depreciation and various other tax incentives through 2014, creating an incentive for businesses to make capital purchases by Dec. 31.
“Renewing accelerated depreciation is good news for the general aviation industry,” said Jim Coon, AOPA senior vice president of government affairs. “GA manufacturing is a homegrown American industry, and anything that stimulates the purchase of new aircraft helps protect and create jobs.”