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GAMA Hails Passage of Placed-in-Service Extension for Bonus Depreciation

GAMA NEWS 04-24 For Immediate Release: Oct 8, 2004

WASHINGTON, DC, October 8, 2004 – The General Aviation Manufacturers Association (GAMA) responded enthusiastically to the House’s passage of the Jumpstart Our Business Strength (JOBS) Act conference agreement. Included in the bill is a provision extending through 2005 the accelerated (bonus) depreciation "placed-in-service" date for general aviation aircraft.

The Senate is expected to pass the agreement today or this weekend before it recesses for the election. The bill then goes to the President for his signature. While the White House recently supported the bill, there has been no indication of when the President will sign it into law.

"We are delighted that Congress acted to include this important provision," said Ron Swanda, GAMA’s interim president. “Extending the placed-in-service date is vital to the continued recovery of our industry. Without this extension, aircraft purchased this year but delivered next year, would not have qualified for bonus depreciation. Our customers now have a real incentive to purchase a new aircraft before the end of the year. With the National Business Aviation Association convention next week, this could not have come at a better time."

Since it was enacted last year, bonus depreciation has been the deciding factor in 35 percent of all aircraft purchased. It provides a compelling reason to buy now, rather than defer, capital purchases. In a weak economy, bonus depreciation increases general aviation sales, allowing job retention and further hiring.

Communications Director:
Andre Castro:
General Aviation Manufacturers Association
Headquarters: (+1) 202-393-1500
European Office: (+32) 2 550-3900

GAMA exists to foster and advance the general welfare, safety, interests, and activities of the global business and general aviation industry. This includes promoting a better understanding of general aviation manufacturing, maintenance, repair, and overhaul and the important role these industry segments play in economic growth and opportunity, and in serving the critical transportation needs of communities, companies, and individuals worldwide.