Costs may be a new or used aircraft purchased in 2010 and 2011.
The proposed tax, first described by the White House would be allowing 100 percent load procurement business investments in capital assets and an acceleration, or "bonus", 50% for 2012 depreciation allowance. An extension of depreciation bonus at the end of 2010 has already signed in law. Non-commercial aircraft buyers will have an extra year to implement the service plan and qualify for procurement expenses and bonus depreciation.
"We couldn't be happier with bipartisan effort which resulted in a rapid passage of tax bill by both houses of Congress and now President, said GAMA, President and CEO Pete Bunce." "" This important legislation contains two provisions which are essential to the recovery of general aviation manufacturing industry. The first allows depreciation from 100 per cent of investments, including aircraft engines avionics and other updates for aircraft in 2011 and amortization of 50 per cent of investments carried out in 2012. Because of their longer production cycles, general aviation aircraft are also eligible for amortization of 100 percent in 2012 and 50% in 2013. The Bill also extends the important research and development (R & D) for two years, tax credit which will enable companies to receive credit for research expenses (2010) this year and also allow firms to plan for 2011. »
Bunce added, "this Bill will help ensure the certainty and our manufacturers incentives need to start encouraging investment and creating demand growth." More importantly, these provisions will be stimulate employment growth in 2011 and beyond and supports a critical sector of the global economy and the United States.
"NBAA is pleased that the administration and Congressional leaders consider additional means that tax incentives may be applied to investments in strategic assets, including aircraft, said NBAA President and CEO Ed Bolen when the Bill was adopted at the end of last week."
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