Tue, Dec 19, 2017
Final Votes Expected Early This Week
The final version of the The Tax Cuts and Jobs Act (H.R. 1) preserve two pro-aviation business provisions supported by multiple industry associations.
The conference report retains Senate language clarifying that aircraft management services are not subject to the 7.5 percent commercial ticket tax. The provision, supported by NATA and NBAA, was necessitated by a 2012 IRS Chief Counsel opinion that left aircraft management service companies – most of them small businesses – vulnerable to back taxes and penalties. After a significant number of these companies successfully appealed audit findings assessing the FET to aircraft management services, the IRS opinion was put on hold in May of 2013 pending further clarification.
The conference report makes immediate expensing available to both new and used equipment, particularly important given the fact the legislation also repeals Like-Kind Exchanges (IRS Sec. 1031). While the House language supported the immediate expensing of new and used equipment, the related Senate provision was limited to new equipment, potentially undermining the stability of the used aircraft market.
“NATA is deeply appreciative that Chairman Brady, Chairman Hatch and the other conferees retained provisions in the tax bill that provide our member companies with long-sought certainty as to the tax status of aircraft management services and encourage investment in the new and used aircraft markets,” stated NATA president Martin H. Hiller. “NATA thanks Senators Brown and Portman and Representative Tiberi for their tireless efforts on our behalf. We also want to thank NATA members who responded to our recent legislative call to action and let their Senators and Representatives know of the importance of these provisions to their businesses,” Hiller said.
“We are pleased with the final tax legislation that emerged from negotiations between the House and Senate,” said NBAA president and CEO Ed Bolen. “For example, providing immediate expensing for new and used equipment, including business aircraft, was a priority for NBAA and will help provide the tools necessary to grow our economy.”
The conference report is expected to be considered by the House and Senate early this week.
(Source: NBAA, NATA news releases. Image from file)
More News
Say Altitude Used by ATC to ascertain an aircraft's specific altitude/flight level. When the aircraft is climbing or descending, the pilot should state the indicated altitude round>[...]
Aero Linx: European Air Law Association (EALA) EALA was established in 1988 with the aim to promote the study of European air law and to provide an open forum for those with an int>[...]
From 2023 (YouTube Version): The Life, Death, Life, Death, and Life of a Glorious Warbird In 1981, business-owner Jim Tobul and his father purchased a Chance-Vought F4U Corsair. Mo>[...]
Also: USCG Retires MH-65 Dolphins, Irish Aviation Authority, NATCA Warns FAA, Diamond DA42 AD This summer, history enthusiasts will have a unique opportunity to experience World Wa>[...]
Also: WACO Kitchen Bails, French SportPlane Mfr to FL, Dynon-Advance Flight Systems, Innovation Preview Bobby Bailey, a bit of a fixture in sport aviation circles for his work with>[...]