Aviation: Tax breaks will boost industryDecember 14, 2010 at 4:18 pm | Posted in Aviation Law Current Event | Leave a comment
by Sara M. Langston with the blog faculty
Source: The Wichita Eagle
General aviation trade groups are urging Congress to quickly pass a tax agreement that they say will boost the industry by doubling the federal tax break for businesses making capital investments.
The tax proposal, first outlined by the White House, would permit 100 percent depreciation of capital investments by businesses during 2011, retroactive from Sept. 8, 2010.
It also would include accelerated or “bonus” depreciation of 50 percent during 2012. A bonus depreciation extension through the end of this year has already been signed into law.
Purchases include aircraft, engines, avionics and other upgrades. Because of longer lead times, buyers of non-commercial aircraft will have an extra year to put the plane in service and qualify for the extra depreciation.
A second provision in the proposal is a two-year extension of a research and development tax credit. Its extension will encourage technical advancements and sustain economic growth in the industry, GAMA said…[more]