Estimated reading time 3 minutes, 55 seconds.
The National Business Aviation Association (NBAA) applauds Sen. Pat Toomey (R-PA) and Rep. Jodey Arrington (R-19-TX) for reintroducing the Accelerate Long-Term Investment Growth Now (ALIGN) Act, legislation that will make permanent immediate expensing, also known as bonus depreciation, which is a proven incentive for business aircraft transactions.
Immediate expensing allows eligible taxpayers to deduct the full cost of qualifying capital equipment, including new and used business aircraft, in the first year of ownership. This provision was modified and extended as part of the Tax Cuts and Jos Act, but is scheduled to start phasing out at the end of 2022 and fully phase out by 2027.
NBAA is a strong supporter of full and immediate expensing and the policy recently was championed by a broad coalition of leading taxpayer and consumer advocacy organizations. Allowing bonus depreciation to expire could potentially damage the U.S. economy as the country emerges from the devastating and prolonged COVID-19 pandemic.
Thanks to the leadership and commitment of Toomey, Arrington and other co-sponsors, the ALIGN Act – which the lawmakers first proposed in 2020 – has been reintroduced to ensure this critical provision becomes a permanent part of the tax code.
“The end of the COVID-19 pandemic is in sight, and Congress should enact policies that enable workers and job creators to propel our economic recovery,” Toomey said in a statement. “Allowing businesses to immediately write off purchases of new equipment was one of the most pro-growth features of the 2017 tax reform law. Capital investment grew and workers became more productive, resulting in more jobs and higher wages. Our legislation will make full expensing permanent, providing manufacturers and businesses of all sizes with more certainty regarding investment planning and growth.”
“There’s no bigger incentive in the tax code for job creation and economic expansion than allowing businesses, both large and small, to fully and immediately deduct the cost of new investments, equipment, and machinery,” noted Arrington. “Unfortunately, this powerful provision will soon phase out, creating uncertainty for businesses as they look to rebound from the economic fallout and prepare for future expansion and innovation.”
NBAA fully endorses these efforts and will mobilize association members and general aviation champions on Capitol Hill to support the effort.
“The ALIGN Act is a critical piece of legislation that recognizes the importance of immediate expensing to the growth and recovery of business aviation,” said Scott O’Brien, NBAA senior director, government affairs. “Immediate expensing also simplifies the tax code and is a proven incentive for new and pre-owned aircraft transactions.”
Learn about the benefits of immediate expensing for business aviation.
This press release was prepared and distributed by NBAA.
