President Bush planned to sign legislation that will increase from 30 percent to 50 percent the first-year depreciation allowance for capital goods, including aircraft. The provision, part of the Jobs and Growth Tax Act of 2003 passed by Congress late last month, “should be a big boost to general aviation,” said General Aviation Manufacturers Association president and CEO Ed Bolen. “This is a real financial incentive to buy airplanes now.”
According to the National Air Transportation Association (NATA), a law recently approved by the California State Assembly would assess all fractional ownership flights in the state with personal property taxes.
Corporate aviation operators at all levels received good and bad news from insurance representatives at the 26th annual Aviation Insurance Association conference held in Kansas City, Mo., on April 29 and 30.
Somewhat lost in the shuffle of recent events, NBAA and the General Aviation Manufacturers Association (GAMA) have released the second part of a study of how the use of business aircraft affects shareholder value.
On September 24, Signature Flight Support began requiring customers at its worldwide chain of 46 FBOs to sign an “indemnification agreement for acts of war and terrorism.” The “hold harmless” agreement was the result of a decision by insurers to cancel Signature’s extended coverage endorsement for war risk liability insurance, effective 8 p.m. that day.
Since September 11, a growing number of countries are requiring that aircraft overflying or landing at their respective airports carry war-risk insurance.
Pushed by President Bush for legislation intended to stimulate the nation’s economy, Congress has taken action on two bills that may affect the purchase of new aircraft by boosting depreciation deductions. While the bills use the term “qualified property” as eligible for depreciation deductions, new aircraft could possibly fit that definition.
Air charter operators have the opportunity to apply for federal relief as a result of September 11. In discussions with the DOT, the National Air Transportation Association learned that Part 135 companies will be allowed to apply for relief by calculating their available seat miles (ASMs) or revenue ton miles (RTMs) for the time that their operations were grounded after September 11.
Conklin & de Decker (Booth No. 1241) announced the release of its Life Cycle Cost Version 7.2 aircraft budget analysis software, including a new “maintenance cost matrix” that lets users view maintenance costs in five-year increments. The feature provides a better picture of predicted budget adjustments as an aircraft gets older, according to the company.
The House Ways and Means Committee today passed H.R.3539, a tax code modification companion bill to H.R.2881, the House FAA reauthorization legislation. In a victory for general aviation groups, the committee voted to keep airline taxes, including the airline fuel tax, at existing levels. Under the legislation, avgas taxes would increase from 19.3 to 24.1 cents per gallon and the jet-A tax would rise from 21.8 to 35.9 cents per gallon.