Lawmakers in the US have introduced a bill to Congress which if passed would extend bonus depreciation for businesses that purchase general aviation aircraft in 2010.
“Bonus depreciation is a powerful incentive to purchase a GA aircraft and is proven to increase sales during difficult economic conditions,” said Pete Bunce, president and CEO of the General Aviation Manufacturer’s Association. “It is the one tax provision we have asked Congress to pass to help offset the decline in sales due to the recession and bring back lost jobs.”
The US government first enacted accelerated depreciation on GA aircraft in 2008 and renewed it again in 2009 as part of economic stimulus measures. The measures allowed business to deduct an additional 50 per cent of the depreciable value in the first year instead of spreading it out over five years, which has helped some manufacturers to maintain strong sales despite the global economic downturn.
Australian aircraft dealers also reported a strong increase in demand from similar measures brought in during 2009 for business assets. The local GA industry has lobbied government to allow for accelerated depreciation as a way to renew the Australian GA fleet, although this has been to little avail.
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