Washington, DC, December 6, 2012 – The National Business Aviation Association (NBAA) has joined a number of other organizations in strongly urging Congressional leaders to continue stimulating capital expenditures among businesses, big and small, by extending their ability to speed up depreciation schedules for a wide variety of major capital investments. That process, known as accelerated, or “bonus” depreciation, is set to expire at the end of this year.
“While it is too late to impact investments made in 2012,” NBAA and the other organizations wrote in a Dec. 5 letter to leaders in both houses of Congress, “it is imperative that we continue the 50% percent bonus depreciation…for 2013 and beyond. This will provide some certainty to U.S. businesses to allow them to continue to make capital investments, which in turn will create more jobs and help ward off a possible recession in 2013.”
As the group’s letter noted, The Wall Street Journal reported last month that half of the nation’s 40 biggest publicly traded companies plan to cut back on capital expenditures. Already, the amount of money businesses invested in new equipment and software was stagnant in the third quarter of 2012 for the first time in three years.
“Businesses need to invest in major assets to help keep America’s economy on the right track,” said NBAA President and CEO Ed Bolen. “Extension of the 50-percent bonus depreciation policy is one of the things that can incentivize companies to make those investments, helping to create jobs and sustain our fragile recovery.”