Get extra lift from AOPA. Start your free membership trial today! Click here

House passes bill to make tax break permanent

The House has passed a bill to renew and make permanent a tax break affecting some business purchases of aircraft.

In a 258 to 160 vote, the House on July 11 passed H.R. 4718, which would reinstate and make permanent a bonus depreciation tax break that expired at the end of 2013. Under bonus depreciation, businesses can write off up to an additional 50 percent of the cost of new equipment in the year it’s placed in service, rather than over a period of up to 20 years. That 50-percent write-off is in addition to costs deducted according to a standard depreciation schedule.

The objective is to stimulate business investment in equipment and facilities, and ultimately create jobs.

“In the past, the availability of bonus depreciation has helped encouraged the purchase of new aircraft for business use. More aircraft sales, and more flying, are good for the entire aviation community,” said Jim Coon, AOPA senior vice president for government affairs.

It’s not yet clear when or if the Senate will act on the legislation.

Elizabeth Tennyson
Elizabeth A Tennyson
Senior Director of Communications
AOPA Senior Director of Communications Elizabeth Tennyson is an instrument-rated private pilot who first joined AOPA in 1998.
Topics: Advocacy, Capitol Hill, Taxes

Related Articles