By Ed Bolen
President & CEO
National Business Aviation Association
If you are considering the purchase of a new business aircraft, or selling your current aircraft, you would be severely affected by a new proposal from the White House to alter the depreciation schedule on aircraft purchases. Aviation stakeholders have a means to voice their opposition to this proposal.
President Barack Obama’s Administration recently released its fiscal year 2016 budget proposal, which begins the conversation in Washington about federal spending levels and priorities. While an onerous per-flight user fee on general aviation was not included, the Administration’s call to lengthen the tax- depreciation schedule for non-commercial business aircraft – from five years, to seven – could negatively affect future aircraft transactions.
Highly regarded economists are well aware that depreciation schedules allowing deductions to be taken closer to when a purchase is made incentivize many kinds of capital investments, including aircraft. The existing schedule recognizes the value of airplanes, and other assets. Singling out business aviation for a longer depreciation schedule goes against this widely accepted tenet, and risks a vital industrial segment.
With the start of the 114th Congress and the release of the proposed budget, I ask that you and your colleagues oppose the Administration’s proposal. NBAA's Contact Congress resource offers an effective and efficient way for you to demonstrate support for GA to your elected representatives and senators in Washington, DC. With a new Congressional session now underway, I thank you for your support in ensuring that GA continues to have a strong, clear, and united voice on Capitol Hill.
Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful. The Association represents more than 10,000 companies and provides more than 100 products and services to the business aviation community, including the NBAA Business Aviation Convention & Exhibition, the world's largest civil aviation trade show. Learn more about NBAA at www.nbaa.org.