Washington, DC—The General Aviation Manufacturers Association (GAMA) today applauded the U.S. Congress for passing legislation recently in two areas important to its members: extending expiring tax provisions important to general aviation growth and innovation, and passing a key appropriations bill funding the Federal Aviation Administration (FAA). Specifically, GAMA thanked Congress for extending tax provisions that promote research and development (R&D) and enable bonus depreciation that will allow general aviation manufacturers to introduce new, safety-enhancing products, boost sales and jobs, and aid the overall U.S. economy. GAMA also praised Congress for passing funding for many of the federal government agencies, including the Department of Transportation and FAA, through September 30, 2015.
Both the R&D tax credit and bonus depreciation deduction were extended through December 31, 2014; they had previously expired at the end of 2013. The R&D tax credit allows companies to claim tax credits for their research investments. The bonus depreciation deduction enables companies that buy a general aviation aircraft to deduct 50 percent of the depreciable value of the aircraft in the first year rather than spreading it out over a longer time period. That deduction is in addition to the regular first-year depreciation computed on the remaining 50 percent of the cost of equipment.
Separately, the omnibus appropriations bill includes strong funding for two initiatives important to general aviation manufacturers: the funding and reform of the FAA’s certification office and the transition to an unleaded aviation gasoline for piston-powered aircraft.
The report language that accompanied the appropriations bill requires the FAA to account for its efforts to expand the use of delegated authority and take a risk-based systems safety approach to oversight. It also seeks to boost the FAA’s workforce skills and training, and ensures the agency engages with international aviation authorities on aircraft certification issues. Furthermore, the bill calls for the FAA to advance implementation of the Small Airplane Revitalization Act (SARA), significantly noting that “the completion of the final rule advances safety.”
Additionally, the bill provides $6 million in funding for the Piston Aviation Fuels Initiative, a joint industry-government effort that is facilitating the safety assessment and deployment of a new unleaded avgas. This funding level is $300,000 above President Obama’s request for the 2015 Fiscal Year, and will be used to evaluate and support fleet-wide approval of unleaded candidate fuels to replace the 100 octane low-lead fuel currently used by piston-engine aircraft.
“We are very pleased that Congress continues to recognize the importance of the R&D tax credit and bonus depreciation, which will have a positive impact on general aviation manufacturers for their end-of-year sales in 2014,” GAMA President and CEO Pete Bunce said. “GAMA is also gratified that Congress is keeping up the pressure on both the FAA and industry to develop more efficient regulatory processes, which will allow manufacturers to bring new products that enhance safety to market much more quickly while the FAA makes more efficient use of its engineering resources. Certification streamlining initiatives and the Small Airplane Revitalization Act are important pieces of these efforts, and Congress has been very supportive in this area.
“Furthermore, GAMA appreciates the funding endorsement from Congress as we work toward fielding an unleaded avgas,” Bunce continued. “As we introduce this new type of fuel, it’s vital that we keep our piston aircraft flying safely, reduce the economic impact on our industry, and improve the environment.
“I want to thank members in both chambers of Congress and the leaders of the relevant committees for advancing these important measures during a difficult budget season, and for all of their work on general aviation manufacturing issues throughout the 113th Congress,” Bunce concluded.