WASHINGTON, DC, September 16, 2010 – The General Aviation Manufacturers Association (GAMA) commends Senate passage of H.R. 5297, the Small Business Lending Fund Act of 2010. The bill contains a provision that will permit bonus depreciation on equipment purchases in 2010 including general aviation (GA) aircraft. Aircraft purchased before the end of 2010 must be placed into service by the end of 2011 to receive bonus depreciation.
“GAMA wishes to thank Senate Finance Committee Chairman Max Baucus (D-MT) for his efforts to pass this bill through the Senate,” said GAMA President and CEO Pete Bunce. “This incentive is a critically needed measure for bringing back jobs and boosting economic recovery in our industry.”
Bonus depreciation allows a business to accelerate 50 percent of the depreciable value of a capital investment in the first year instead of spreading it out over five years and is a proven tool for increasing aircraft sales. One GA manufacturer reported that bonus depreciation accounted for 55 percent of all piston airplane sales in 2009.
“Our industry has been waiting for this key measure to be passed to help in our recovery,” said Bunce. “We look forward to swift passage of this bill in the House and to the president’s signature on this important piece of legislation.”