Close sidebar

US gets accelerated depreciation for GA aircraft

written by australianaviation.com.au | September 24, 2010
Cessna could expect Citation production and sales to be boosted by a new accelerated depreciation provision. (Cessna)

The US House of Representatives have passed a bill which will grant businesses who buy new general aviation aircraft and components a bonus depreciation tax incentive in a move which is expected to give a major boost to the GA manufacturing industry.

“We are pleased that the House acted so quickly to pass the final version of this important legislation,” said the General Aviation Manufacturers Association’s president and CEO Pete Bunce.  “A quick signature from President Obama will allow operators to take advantage of this provision before the end of the year. As a proven stimulus to increase sales, we are optimistic that an extension of bonus depreciation will help re-energise an industry that continues to struggle with slowed production lines and diminished customer demand.”

The bonus depreciation provision allows a business that purchases a general aviation aircraft to deduct the normal depreciation allowance as well as an additional 50 per cent of the depreciable value of the aircraft in the first year after delivery, instead of spreading it out evenly over five years.

Advertisement
Advertisement

Locally, a number of groups have been pushing for similar bonus depreciation policies on new aircraft as a way of encouraging investment in the GA industry and to help address ageing aircraft issues. Many local aircraft dealers reported that the federal government’s ‘investment allowance’ depreciation scheme for businesses brought in during 2009 led to a major increase in interest in new aircraft.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

US gets accelerated depreciation for GA aircraft

written by australianaviation.com.au | September 24, 2010
Cessna could expect Citation production and sales to be boosted by a new accelerated depreciation provision. (Cessna)

The US House of Representatives have passed a bill which will grant businesses who buy new general aviation aircraft and components a bonus depreciation tax incentive in a move which is expected to give a major boost to the GA manufacturing industry.

“We are pleased that the House acted so quickly to pass the final version of this important legislation,” said the General Aviation Manufacturers Association’s president and CEO Pete Bunce.  “A quick signature from President Obama will allow operators to take advantage of this provision before the end of the year. As a proven stimulus to increase sales, we are optimistic that an extension of bonus depreciation will help re-energise an industry that continues to struggle with slowed production lines and diminished customer demand.”

The bonus depreciation provision allows a business that purchases a general aviation aircraft to deduct the normal depreciation allowance as well as an additional 50 per cent of the depreciable value of the aircraft in the first year after delivery, instead of spreading it out evenly over five years.

Advertisement
Advertisement

Locally, a number of groups have been pushing for similar bonus depreciation policies on new aircraft as a way of encouraging investment in the GA industry and to help address ageing aircraft issues. Many local aircraft dealers reported that the federal government’s ‘investment allowance’ depreciation scheme for businesses brought in during 2009 led to a major increase in interest in new aircraft.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

Each day, our subscribers are more informed with the right information.

SIGN UP to the Australian Aviation magazine for high-quality news and features for just $99.95 per year