Washington, DC—The General Aviation Manufacturers Association (GAMA) today joined 527 other organizations in calling on the U.S. Congress to extend, enhance, or make permanent expired and expiring tax provisions during the remaining weeks of the 113th Congress. Extending the tax provisions that promote research and development and enabling bonus depreciation would allow general aviation manufacturers to bring a greater number of innovative safety-enhancing products to market, stimulate sales, sustain and grow the number of jobs, and strengthen the economy.
The letter, which was sent to all members of Congress, notes: “Failure to extend these provisions is a tax increase. It will inject instability and uncertainty into the economy and weaken confidence in the employment marketplace. Acting promptly on this matter in the lame duck will provide important predictability necessary for economic growth.”
The research and development tax credit, which expired at the end of 2013, allows companies to claim tax credits for their research costs. The bonus depreciation deduction, which also expired at the end of last year, enables companies that buy a general aviation aircraft to deduct 50 percent of the depreciable value of the aircraft in the first year instead of spreading it out over five years. In addition, that buyer would receive the regular first year depreciation deduction.
“GAMA is pleased to join with an overwhelming number of organizations across all sectors of the economy in calling on Congress to pass this common-sense tax legislation before it goes home for the year,” GAMA President and CEO Pete Bunce said. “Addressing these policies immediately will directly impact innovation and company sales for the remainder of 2014 and provide needed stability in planning for 2015 and beyond.”
The full text of the letter follows:
“The undersigned organizations, representing millions of individuals, businesses of all sizes, community development organizations and non-profit organizations, urge Congress to act in the Lame Duck session to extend seamlessly, enhance or make permanent the expired and expiring tax provisions. These tax provisions are critically important to U.S. jobs and the broader economy.
“Failure to extend these provisions is a tax increase. It will inject instability and uncertainty into the economy and weaken confidence in the employment marketplace. Acting promptly on this matter in Lame Duck will provide important predictability necessary for economic growth.
“The expired provisions should be renewed as soon as possible this year to enable implementation in time for the normal tax filing season. A delay in the tax filing season will delay tax refund checks and spending decisions, resulting in an immediate negative impact on the economy.
“We urge all members of Congress to work together to extend seamlessly, enhance, or make permanent, these important tax provisions this year to provide a necessary bridge to comprehensive tax reform.”