Daily Archives: Dec. 7, 2012

Business and trade groups urge Congress to extend “bonus depreciation”

The National Business Aviation Association is joining dozens of organizations urging Congress to extend accelerated or “bonus” depreciation on a variety of capital equipment used in business, including airplanes.

The action speeds up depreciation schedules allowing businesses to depreciate 50 percent of the cost in the first year.

Bonus depreciation is set to expire at the end of this year.

“It is imperative that we continue the 50 percent bonus depreciation…for 2013 and beyond,” the trade groups said in a letter to leaders of both houses of Congress. “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.”

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, NBAA said.

“Businesses need to invest in major assets to help keep America’s economy on the right track,” NBAA president and CEO Ed Bolen said in a statement.

The letter is signed by representatives of airlines, builders, contractors, railroads, equipment, communication and other industries.

Embraer’s first U.S.-built Phenom 300 makes first flight

Embraer’s first U.S.-assembled Phenom 300 light business jet took its maiden flight this week.

The aircraft was assembled at Embraer’s Melbourne, Fla. plant and will be used by the Brazil-based company as a flight demonstrator.

Embraer officials hail the flight as a milestone for its 23-month-old U.S. production facility.

“The reduction in production time to half of what it took for the first Phenom 100 means the processes we put in place for production have now matured,” Phil Krull, managing director of the site, said in a statement.

The plant is on schedule to produce eight planes per month as it ramps up to full production in the coming months, Krull said.

Embraer opened the facility in February 2011. In December 2011, it opened a 58,000-square-foot customer center at the site.

Last month, it began construction on a $26 million, 67,000 square-foot engineering and technical center. Completion is expected in mid-2014.

The $50 million investment in the site, along with investments in manufacturing elsewhere, reflects Embraer’s commitment to business aviation, the company said.