By Molly McMillin
The National Business Aviation Association is joining dozens of organizations urging Congress to extend accelerated or “bonus” depreciation on a variety of capital equipment used in business, including airplanes.
The action speeds up depreciation schedules allowing businesses to depreciate 50 percent of the cost in the first year.
Bonus depreciation is set to expire at the end of this year.
“It is imperative that we continue the 50 percent bonus depreciation…for 2013 and beyond,” the trade groups said in a letter to leaders of both houses of Congress. “This will provide some certainty to U.S. businesses to allow them to continue to make capital investments, which in turn will create more jobs and help ward off a possible recession in 2013.”
The amount of money businesses invested in new equipment and software was stagnant in the third quarter of 2012 for the first time in three years, NBAA said.
“Businesses need to invest in major assets to help keep America’s economy on the right track,” NBAA president and CEO Ed Bolen said in a statement.
The letter is signed by representatives of airlines, builders, contractors, railroads, equipment, communication and other industries.