GENERAL AVIATION JOBS ACT
November 13, 2009
What’s at Issue
On October 15, 2009, U.S. Representative Todd Tiahrt (R-KS) introduced H.R. 3844, the General Aviation Jobs Act of 2009. H.R. 3844 would amend the Internal Revenue Code of 1986 to provide a special depreciation allowance and recovery period for noncommercial aircraft property. Companion legislation, S. 2723 the General Aviation Depreciation Bill, has now been introduced in the U.S. Senate by Senators Pat Roberts (R-KS) and Sam Brownback (R-KS) with identical bill language to H.R. 3844.
Why It’s Important
H.R. 3844 and S. 2723 seek to boost general aviation aircraft sales by extending the current bonus depreciation allowance for another two years and shorten the recovery period for non-commercial aircraft property from five to three years.
Major Provisions
- Special depreciation allowance and recovery period for noncommercial aircraft property.
- The depreciation deduction for the taxable year in which aircraft is placed in service shall include an allowance equal to 50 percent of the adjusted basis of the qualified noncommercial aircraft property.
- The adjustable basis of the qualified noncommercial aircraft property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.
- Applies to aircraft purchased in 2010 or 2011.
- Qualified noncommercial aircraft placed in service after December 31, 2009, and before January 1, 2012.
- Qualified noncommercial aircraft shall be treated as three-year property.
- Applies to aircraft purchased before 2015.
- Qualified noncommercial aircraft placed into service before January 1, 2015.
To view the text of H.R. 3844, please click here.
To view the text of S. 2723, please click here.
NATA Position
The association is pleased that the Kansas Delegation in both the U.S. House of Representatives and the U.S. Senate recognize the value of stimulating the economy by providing an extension of economic incentive to aviation businesses. NATA is hopeful that the extension of tax incentives that this bill would provide will benefit general aviation businesses.
Status
H.R. 3844 was referred to the House Committee on Ways and Means, which has jurisdiction over legislation containing tax provisions. S. 2723 was referred to the Senate Committee on Finance. NATA will inform members if the committee intends to hold a hearing or vote on the bill.
Staff Contact: Kristen Moore
Director, Legislative Affairs
kmoore@nata.aero