GAMA pushes for tax breaks for GA industry

An industry body in the US is pushing for the approval of a recently announced bipartisan tax agreement to help boost the General Aviation industry.

The General Aviation Manufacturers Association (GAMA) has called on the US Congress to swiftly pass the tax agreement recently announced by President Obama.

The proposed bipartisan tax agreement includes a provision that permits 100 per cent depreciation of capital investments by businesses during 2011 and 50 per cent depreciation of investments made in 2012.

Eligible investments include aircraft, engines, avionics and other upgrades. Due to their longer production cycle, aircraft deliveries will also be eligible for 100 per cent depreciation in 2012 and 50 per cent in 2013.

The agreement also calls for a two year extension (2010 and 2011) to the research and development tax credit, which will allow businesses to receive credit for this year’s research expenditures and also permit companies to plan expenditures for 2011 in a more certain tax environment. This credit has proven very effective in encouraging technical advancements and sustaining economic growth in the industry.

President and CEO Pete Bunce says GAMA strongly supports the introduction of these tax incentives as they contain key provisions that will create much needed growth in General Aviation manufacturing.

“These proposals are extremely well-targeted to create jobs, stimulate innovation, and get production lines moving again at manufacturing plants,” Bunce says. “It permits businesses to expense capital investments and it also extends the research and development tax credit.
 
“We believe the expensing provision will encourage sales of airplanes, engines, and avionics in a market that continues to experience a very slow recovery from the recession. It will also benefit companies and employees of maintenance and completion centers that overhaul aircraft and install equipment.

“We hope that Congress will not miss this tremendous opportunity to strengthen the General Aviation manufacturing industry.”