U.S. Extends Bonus Depreciation for Business Aircraft
Despite his rhetoric during a presidential debate that “corporate jets” should not get tax breaks, President Obama signed a bill–the American Taxpayer Relief Act of 2012–last week that extends the 50-percent accelerated depreciation for capital goods, notably including business aircraft, through the end of this year. According to NBAA, this means that, in general, new business aircraft purchased this year are eligible to qualify for 50-percent “bonus” depreciation.
“If there is a written, binding contract in place to purchase the aircraft by Dec. 31, 2013, and the aircraft qualifies as ‘certain aircraft’ or ‘long production period’ as defined in the Internal Revenue Code, the aircraft can be placed in service during 2014 and still qualify for 50-percent bonus depreciation,” NBAA advised.
“Accelerated depreciation has consistently proved to stimulate sales in difficult economic conditions,” NBAA president and CEO Ed Bolen noted. “Given the current marketing environment, we view the continuation of accelerated depreciation as an effective sales incentive.”