A new federal tax-cut law contains an increase in the bonus depreciation percentage from 30 percent to 50 percent in the first-year allowance for the purchase of capital goods, including new aircraft. The rate will be available for any new aircraft–regardless of value if used under Part 91–acquired after May 5, 2003, and before Jan. 1, 2005. The aircraft must be placed in service before Jan. 1, 2006. For commercial operators to qualify, the aircraft must cost more than $1 million and take “at least 12 months to construct.” The 50-percent depreciation also applies to “major improvements” made to aircraft.
New bonus depreciation option clarified
- July 28, 2008, 11:52 AM