President Obama is trying to pull out all of the bag of tricks he can for the economic recovery and to that he is now proposing giving small businesses a new boost. He is proposing to make it possible for small businesses to purchase aircraft with the possibility of the tax incentive. Great news for some if the legislature would pass the deal. Business Jet traveler reports more fully:
President Obama has proposed giving small businesses a 100-percent bonus depreciation tax incentive for 2011 that would increase the currently proposed 50-percent bonus depreciation deduction, retroactive to September 8, 2010. This deduction would apply to purchases of business equipment such as vehicles, computers and, of course, business jets. Business aircraft manufacturers are hailing the proposal because it would give businesses added incentive to buy aircraft now. Congress still must pass the measure. Legislation currently pending in the Senate would reinstate the 50-percent depreciation bonus that was in effect in 2008 and 2009 through the end of 2010. Supporters are hopeful that the 100-percent bonus depreciation incentive can be added to this bill.
This is a great deal if it works and we will see if it moves the needle in the current economic crisis we are finding the business aviation industry. It is not yet clear how this might help jet sales.