House Ways and Means Committee member Pat Tiberi (R-Ohio) last week introduced a bill to permanently extend the 50-percent bonus depreciation provision covering certain capital equipment, including business aircraft. The bill, H.R.2510, has attracted 23 cosponsors—all Republicans—so far. A number of the cosponsors are members of the Ways and Means Committee, which steers tax policy. Tiberi said the measure would help improve access to capital and foster investments.
Introduction follows House passage earlier this year of a bill to make permanent the Section 179 provision permitting small businesses to expense up to $500,000 in investments rather than deducting them. The fate of these measures in the Senate, however, is unclear because the chamber is focusing on larger tax reform.
The Senate Finance Committee, the counterpart to the Ways and Means Committee, earlier this year had invited input for tax reform. In response, NATA urged the committee to support making permanent both the Section 179 measure and bonus depreciation. NATA president and CEO Tom Hendricks further backed the Tiberi measure, saying the bill would “assist the general aviation sector by encouraging aviation businesses to make immediate capital investments in the U.S. economy.”