Washington, DC, Dec. 4, 2014 – The National Business Aviation Association (NBAA) today welcomed a vote by the House of Representatives to renew several expiring tax provisions – including accelerated depreciation – for one year.
“NBAA applauds this action by the House to renew bonus depreciation and other tax incentives that encourage businesses to upgrade equipment and invest in assets such as aircraft,” said NBAA President and CEO Ed Bolen.
Bonus depreciation expired at the end of 2013, but NBAA and a broad coalition of industry groups have backed efforts in Congress to renew it retroactively as part of a package of tax “extenders.” View the NBAA web article: “NBAA Among 500 Industry Groups Making Push for Extending Tax Provisions.”
“Bonus depreciation strengthens our economy in two essential ways,” Bolen explained. “It gives our businesses immediate access to the most advanced equipment, including aircraft, making them more competitive, and it preserves jobs in America’s vital aircraft-manufacturing industry.”
For qualified property, accelerated depreciation allows businesses to take a first-year deduction equal to 50 percent of an asset’s cost basis. After the first year, the asset is depreciated according to the Modified Accelerated Cost Recovery System.
The House-passed bill also would renew increased limitations for Section 179 expensing. The provision allows businesses to expense, rather than depreciate, certain assets (such as aircraft parts) with a value up to $500,000.
The House of Representatives and the Senate have been working toward agreement on a tax extender bill for most of this year. In April, the Senate Finance Committee approved a plan to renew several tax extenders for two years. View the NBAA press release: “NBAA Welcomes Senate Committee’s Action to Renew Tax Incentive on Business Aircraft Purchases.”
The House of Representatives and Senate plans will need to be reconciled before a final bill can be sent to the president for his signature.
