The General Aviation Manufacturers Association is urging Congress to quickly pass a tax agreement to help boost general aviation manufacturing.
The agreement contains two key provisions to help boost general aviation, GAMA said.
The first provision permits 100 percent depreciation of capital investments by businesses during 2011 and 50 percent depreciation of investments made in 2012. That includes purchases of aircraft, engines, avionics and other upgrades. Because of longer lead times, aircraft deliveries will also be eligible for 100 percent depreciation in 2012 and 50 percent in 2013.
The second provision is a two-year extension of a research and development tax credit. Its extension will encourage technical advancements and sustain economic growth in the industry, GAMA said.
“We believe the expensing provision will encourage sales of airplanes, engines and avionics in a market that continues to experience a very slow recovery from the recession,” GAMA CEO and president Pete Bunce said in a statement. “It will also benefit companies and employees of maintenance and completion centers that overhaul aircraft and install equipment.”