GAMA president talks bonus depreciation
October 12, 2011
General Aviation Manufacturers Association president and CEO Pete Bunce recently acknowledged that bonus depreciation
has been helpful to the airline industry in the wake of the recession, according to the Aviation International News.
"Obviously, we didn't need bonus depreciation during the heyday years leading up to 2008, but then the collapse happened in the economy," he said, as quoted by the news source.
Bunce explained that as part of the 2010 tax compromise, "we got what's called 100 percent expensing, so you're able to depreciate everything upfront in a single year" - an approach he called "bonus depreciation on steroids." He noted that an uptick in orders has been seen as a result, which has been good for job stimulation.
In a July speech, President Barack Obama singled out a depreciation tax
loophole that allows corporate jets to be depreciated over a five-year period rather than the seven years required for their commercial counterparts. He labeled the allowance, which gives companies more of an incentive to buy new planes, as "egregious."