Tue, Dec 14, 2010
Association Says Passage Will Boost General Aviation
Manufacturing
GAMA has called on Congress to swiftly pass President
Obama's recently announced bipartisan tax agreement to help boost
general aviation manufacturing and restore lost industry jobs.
GAMA CEO Pete Bunce
"We support this agreement because it
contains two key provisions that will create needed growth in
general aviation manufacturing. It permits businesses to expense
capital investments and it also extends the research and
development tax credit," GAMAs President and CEO Pete Bunce said in
a news release Monday. "These proposals are extremely well-targeted
to create jobs, stimulate innovation, and get production lines
moving again at manufacturing plants."
The first provision permits 100 percent depreciation of capital
investments by businesses during 2011 and 50 percent depreciation
of investments made in 2012. Eligible investments include aircraft,
engines, avionics and other upgrades. Due to their longer
production cycle, aircraft deliveries will also be eligible for 100
percent depreciation in 2012 and 50 percent in 2013.
The agreement also calls for a two year extension to the
research and development (R&D) tax credit. This extension (2010
and 2011) will allow businesses to receive credit for this year's
research expenditures and also permit companies to plan
expenditures for 2011 in a more certain tax environment. This
credit has proven very effective at encouraging technical
advancements and sustaining economic growth in the industry.
"We believe the expensing provision will encourage sales of
airplanes, engines, and avionics in a market that continues to
experience a very slow recovery from the recession. It will also
benefit companies and employees of maintenance and completion
centers that overhaul aircraft and install equipment," said Bunce.
"We hope that Congress will not miss this tremendous opportunity to
strengthen the general aviation manufacturing industry."
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