Despite our industry’s many benefits to communities across the United States, business aviation is frequently a target for unsubstantiated rhetoric and onerous policy proposals from Washington policymakers. For example, President Obama’s recently released fiscal year 2016 budget proposal again focused on business aviation with a renewed effort to lengthen the tax-depreciation period for business aircraft from five years to seven.
Administration officials have referred to the five-year schedule as a “loophole” that disproportionately benefits those who can afford business aircraft. However, media outlets that have researched the topic, as well as industry advocates, say the schedule is an effective driver of economic investment that dates back decades, and applies to a wide variety of equipment classes, from construction vehicles to aircraft.
NBAA was quick to point this out in forceful statements challenging the White House’s newest budget plan, including comments published in the leading Washington, DC daily newspaper Roll Call noting that far from being a loophole, depreciation schedules allowing deductions to be taken closer to when aircraft or other assets are purchased were set by the IRS and approved by Congress decades ago.
We added that incentivizing business aircraft purchase not only gives companies access to a tremendous competitive asset, but also helps preserve jobs in America’s vital aircraft manufacturing sector.
Readers of Twin & Turbine can help spread this message as Congress debates the President’s fiscal year 2016 budget plan. NBAA is urging its Members and other concerned aviation stakeholders to use NBAA’s Contact Congress resource, located on the Association’s website, to make their voices heard on the administration’s proposal.
NBAA’s Contact Congress tool, available at www.nbaa.org/contactcongress, provides an easy way for Members to voice their views on the need to reject the administration’s attempt to change the depreciation schedule. Each Contact Congress message is customized for the sender, and each message may be edited to a sender’s specifications. NBAA never discloses senders’ information to other parties.
As NBAA continues to promote a positive agenda for the business aviation community, and fight onerous proposals that would curtail our industry, we must also ensure that our size and significance are recognized in Washington. With a new Congressional session now underway, I thank you for your support in ensuring that GA continues to have a strong, clear and united voice on Capitol Hill.