Mon, Sep 27, 2010
Bill Includes Bonus Depreciation For Business Assets ... Such
As Airplanes
President Barack Obama
(pictured) signed the Small Business Jobs Act Monday
afternoon, a bill which could help spur the still-slumping sales of
business airplanes.
The part of the bill in which the aviation community has had
such a keen interest is an extension of what is known as "bonus
depreciation." The White House blog describes it as "Extension and
Expansion of Small Businesses’ Ability to Immediately Expense
Capital Investments: The bill increases for 2010 and 2011 the
amount of investments that businesses would be eligible to
immediately write off to $500,000, while raising the level of
investments at which the write-off phases out to $2 million. Prior
to the passage of the bill, the expensing limit would have been
$250,000 this year, and only $25,000 next year. This provision
means that 4.5 million small businesses and individuals will be
able to make new business investments today and know that they will
earn a larger break on their taxes for this year."
"Now this is important because small businesses produce most of
the new jobs in this country," Obama said in signing the bill.
"They are the anchors of our Main Streets. They are part of the
promise of America – the idea that if you’ve got a
dream and you’re willing to work hard, you can succeed.
That’s what leads a worker to leave a job to become her own
boss. That’s what propels a basement inventor to sell a new
product – or an amateur chef to open a restaurant. It’s
this promise that has drawn millions to our shores and made our
economy the envy of the world."
The first reaction came quickly
from GAMA President and CEO Pete Bunce, who released the following
statement just following President Obama's signature on the Small
Business Jobs Act of 2010:
"GAMA is pleased that President Obama has signed the Small Business
Jobs Act of 2010 into law. The bonus depreciation provision
included in the bill, which can be applied to both general aviation
aircraft purchases and components such as engines and avionics,
will allow operators to take advantage of this critical incentive
before the end of this year. As the one tax provision we asked
Congress to pass to help offset the decline in sales due to the
recession, we are optimistic that the small business law will help
to re-energize America's general aviation production lines and
bring back lost jobs."
But whether the move come in time to help the still-sluggish
aircraft manufacturing sector remains to be seen. Just last week,
both Hawker Beechcraft and Cessna announced that they would be
idling more than 1000 workers between the two companies
in Wichita because business aircraft sales had not seen the kind of
recovery they had anticipated earlier this year.
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