Thursday, February 19, 2009
Economic Stimulus Bill – Accelerated Depreciation on Aircraft
There’s good news if you’re planning to buy a new aircraft in 2009!
Included in the $800 billion economic stimulus bill signed by President Obama in February are incentives to buy new aircraft in 2009. The American Recovery and Reinvestment Act allows for the return of bonus depreciation on new aircraft purchases. New, factory-manufactured aircraft purchased and placed in service between January 1, 2009 and December 31, 2009 will be eligible for the 50% bonus depreciation. Also, improvements (such as the purchase and installation of new avionics) made to existing or used aircraft will qualify for the bonus depreciation. The Section 179 deduction allowing the immediate expense deduction of up to $250,000 for qualified (new and used) business aircraft subject to an investment limitation of $800,000 was retained for 2009. Additionally, a new provision will allow losses incurred in 2008 or 2009 by qualified eligible small businesses to be carried back up to five prior tax years allowing an immediate tax refund. Purchasing a business aircraft eligible for the bonus depreciation could result in a business loss that would be available for carryback by a qualified eligible small business.
Click here for more information. Look for more in the next issues of Plane & Pilot and Pilot Journal.