Aviation groups call for 100 percent bonus depreciation extension
February 10, 2012
The National Business Aviation Association and a group of other manufacturing businesses and organizations are lobbying for the continuance of 100 percent bonus depreciation
In a letter to lawmakers, the coalition - which included the Aerospace Industries Association and the American Institute of Architects - noted that extending the provision through the end of 2012 would "spur much needed business investment and job creation."
In 2011, 100 percent bonus depreciation allowed companies to immediately write off all of a fixed asset
's cost, provided certain criteria were met. Specifically, the purchase had to be more than $500,000 and the equipment was required to be new and normally depreciated over 20 years or less. At the end of the year, the allowance expired and was replaced by a 50 percent version.
The organizations called for the change in the law to combat what they termed "continued economic uncertainty" and the still-high unemployment rate.
A recent Seeking Alpha article noted that the expiration of the 100 percent provision would provide an opportunity to see whether "the 'multiplier' effects of big-ticket investment spending are real and lasting, or simply a figment of macroeconomists' imaginations."