WASHINGTON, DC, December 17, 2010 – The General Aviation Manufacturers Association (GAMA) issued the following statement as President Obama prepares to sign into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 this afternoon.  

“We could not be more pleased by the bipartisan effort that resulted in a swift passage of this tax bill through both chambers of Congress and now to the president,” said GAMA President and CEO Pete Bunce.  “This important legislation contains two provisions that are critical to the recovery of the general aviation manufacturing industry.  The first permits 100 percent depreciation of capital investments including aircraft engines, avionics and other upgrades to aircraft during 2011 and 50 percent depreciation of investments made in 2012.  Due to their longer production cycle, general aviation aircraft will also be eligible for 100 percent depreciation in 2012 and 50 percent in 2013. The bill also extends the important research and development (R&D) tax credit for two years, which will allow businesses to receive credit for this year’s (2010) research expenditures and also permit companies to plan for 2011.”

Bunce added, “This bill will help provide the certainty and incentives our manufacturers need to start growing again by encouraging investment and creating demand.  Most importantly, these provisions will boost job growth in 2011 and beyond and support a critical sector in the U.S. and global economy.”