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.
NBAA said the Senate approved legislation on Friday that includes accelerated depreciation for “strategic business purchases this year,” which includes business aircraft. “NBAA applauds the Senate action, and urges the House to approve the Senate-passed version this month to allow companies to take advantage of this accelerated, or ‘bonus,’ depreciation before the end of the year,” said NBAA president and CEO Ed Bolen.
Although support for accelerated depreciation for major equipment purchases is growing, Congress left for its summer recess without making it so. Last month, NBAA senior vice president for government affairs Lisa Piccione told the Greater Washington Business Aviation Association (GWBAA) that NBAA has joined 80 other business organizations in pushing to see accelerated depre ciation renewed in pending legislation in the Senate.
Business jet and turboprop delivery totals declined for the seventh straight quarter, but industry billings rose a modest 0.2 percent in the first six months of this year, according to statistics released yesterday by the General Aviation Manufacturers Association (GAMA). In the first half of this year, deliveries of business jets decreased 14.3 percent, with 355 aircraft shipped versus 414 in the same period last year.
With the rancor over business jet use now receding in Congress’s rear-view mirror, House and Senate lawmakers are jumping in line to extend accelerated depreciation for major equipment purchases– including general aviation aircraft–in 2010.
In written testimony delivered yesterday to the U.S. House Committee on Small Business, NBAA president and CEO Ed Bolen repeated the business aviation community’s support for legislative proposals to renew bonus depreciation for investments in strategic business assets, including aircraft. The committee held a hearing yesterday about extending the bonus depreciation for business investments that expired last year.
Piaggio Avanti fractional provider Avantair’s revenue increased 4 percent, to $36 million, in its fiscal third quarter (which ended March 31) compared with the year-ago period. Its earnings before interest, income taxes, depreciation and amortization also rose to $1.8 million, up from the $1.5 million reported in the same period last year.
Two congressmen have sent a letter to the House Ways and Means Committee asking the tax-writing body to extend the bonus depreciation incentive for noncommercial aircraft purchases.
Under bonus depreciation, companies and individuals were allowed to claim an additional depreciation of up to 50 percent during the first year after purchase on capital equipment used primarily for business and placed in service by the end of last year.
Fractional provider Avantair reported revenues of $35.8 million for its Fiscal Year 2010 second quarter ending December 31. It recorded operating income of $1.4 million versus an operating loss of $628,000 in the year-ago period, and earnings before interest, income taxes, depreciation and amortization stood at $2.8 million.
Fractional provider Avantair reported revenues of $35.8 million for its fiscal year 2010 second quarter, which ended December 31. It recorded operating income of $1.4 million, versus an operating loss of $628,000 in the year-ago period, and earnings before interest, income taxes, depreciation and amortization stood at $2.8 million.