Bonus Depreciation Passes, Could Spur Bizcraft Sales

 - September 23, 2010, 11:27 AM

General aviation groups today hailed the passage of a bonus depreciation bill that will allow for accelerated depreciation of business aircraft. The Senate passed its version shortly after legislators returned from their summer recess last week. The House of Representatives already passed similar legislation in June, but had to vote on the Senate version since it contained minor differences. This afternoon, the House approved the Senate version. H.R.5297, the Small Business Lending Fund Act of 2010, contains a provision to allow bonus depreciation on equipment purchases this year, including general aviation aircraft. Aircraft purchased before the end of this year must be placed into service by the end of next year to qualify for bonus depreciation, which permits a business to accelerate 50 percent of the depreciable value of a capital investment in the first year instead of spreading it out over five years. Bonus depreciation has increased aircraft sales in past years, and is expected to do so this year. NBAA applauded the passage of the bill, which will “allow companies to take advantage of this accelerated depreciation before the end of the year,” said NBAA president and CEO Ed Bolen. “Allowing faster capital cost recovery of the purchase of company assets, including business aircraft, is helpful to business aviation and to our economy.”