Tue, Apr 08, 2014
Would Apply To 'Property Placed In Service After December 31, 2013'
The NBAA has praised the Senate Finance Committee's completion of work on legislation that would restore for two more years a host of tax incentives that expired in 2013, including a commonly recognized incentive – "bonus depreciation" – on the purchase of aircraft and other assets used by businesses.
"NBAA is pleased that the Senate Finance Committee has included in its tax-policy proposal the ways in which tax incentives like bonus depreciation can be applied to investments in strategic business assets, including aircraft," said NBAA President and CEO Ed Bolen.
"Economists have long recognized that allowing for additional depreciation, in the first year after the purchase of an asset, is an effective way to motivate people and companies to make upgrades," Bolen continued. "When applied to business aircraft purchase, bonus depreciation gives companies immediate access to the efficiency productivity, competitive and other benefits that come with the asset’s use, while also helping to preserve jobs in a key American manufacturing sector."
The legislation, which packages a series of tax "extenders," would apply to "property placed in service after Dec. 31, 2013, in taxable years ending after such date." Qualified property with a modified accelerated cost-recovery system period of seven years or less must be placed in service before Jan. 1, 2016. For "certain longer-lived and transportation property," the in-service deadline would be Jan. 1, 2017.
Qualified property placed in service during the allotted period would be allowed an additional first-year depreciation deduction equal to 50 percent of its adjusted basis. Property that meets the requirements for the additional first-year depreciation deduction may also qualify for first-year depreciation equal to 100 percent of the qualified property’s adjusted basis.
Senate Finance Committee Chairman Ron Wyden (D-OR) indicated that the bill would be a one-time extension.
More News
Very High Frequency The frequency band between 30 and 300 MHz. Portions of this band, 108 to 118 MHz, are used for certain NAVAIDs; 118 to 136 MHz are used for civil air/ground voi>[...]
Aero Linx: Aviation Suppliers Association Established February 25, 1993, the Aviation Suppliers Association (ASA), based in Washington, D.C., is a not-for-profit association, repre>[...]
Have A Story That NEEDS To Be Featured On Aero-News? Here’s How To Submit A Story To Our Team Some of the greatest new stories ANN has ever covered have been submitted by our>[...]
From 2021 (YouTube Version): Colorado Campus Offers aVariety Of Aerospace Entertainment And Education Wings over the Rockies Exploration of Flight is the second location for the Wi>[...]
Also: Paramotor Champ's, Electric Ultralight, ICON BK Update, Burt Rutan at Oshkosh! The Popular Rotorcraft Association is reaching out for help in rebuilding their private runway >[...]