NBAA Applauds Passage of Expanded Tax Benefits for Business Investments

The National Business Aviation Association (NBAA) welcomed the latest Congressional action to give U.S. companies tax benefits to help preserve manufacturing jobs while allowing companies immediate access to the benefits of business aircraft.

The U.S. House of Representatives passed, and President Obama signed, the tax proposal — H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 — which allows businesses 100 percent accelerated, or "bonus" depreciation of investments in capital assets, including new aircraft, through December 31, 2011, retroactive from September 8, 2010. The legislation also provides for "bonus" depreciation allowance of 50 percent during 2012.

"NBAA is pleased that the House of Representatives has joined with the Senate passing legislation to make available additional ways in which tax incentives can be applied to investments in strategic business assets, including new aircraft," NBAA president and CEO Ed Bolen said when the legislation passed. "Today’s House vote brings us another step closer to preserving vital U.S. business aviation manufacturing jobs, while also providing companies immediate access to the many benefits that accrue with the use of an aircraft for business purposes."

A bonus depreciation extension through the end of 2010 has already been signed into law, but this legislation gives purchasers of non-commercial an extra year to put the plane in service and qualify for expensing and bonus depreciation. The Senate passed an overall tax package that includes the proposal earlier.