The small-business bill approved by the Senate on Thursday includes a provision that could have a positive influence on Wichita's general aviation manufacturers.
The bill will permit bonus depreciation on equipment purchases in 2010 including general aviation aircraft. Aircraft purchased before the end of this year must be placed into service by the end of 2011 to receive bonus depreciation.
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, the General Aviation Manufacturers Association said Thursday.
"Our industry has been waiting for this key measure to be passed to help in our recovery," Pete Bunce, GAMA president and CEO, said in a release. "We look forward to swift passage of this bill in the House and to the president's signature on this important piece of legislation."
Premium content for only $0.99
For the most comprehensive local coverage, subscribe today.