NBAA Supports Legislation to Make Immediate Expensing Permanent
/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.
NBAA fully endorses these efforts and will mobilize association members and general aviation champions on Capitol Hill to support the effort.
Learn about the benefits of immediate expensing for business aviation.