Welcome to the Aero Law Critic blog, a blog of Stewart H. Lapayowker, P.A. As anyone involved in business aviation knows, the phrase "aviation law" is far too narrow a description for all that goes into a successful aircraft purchase, sale or financing transaction, so the scope of our blog is very broad and we welcome comments in any aviation area including FAA regulations, DOT regulations, federal tax, sales tax, International Registry, purchase and sale transactions, among others. We'll do our best to respond to your questions and comments and we welcome others to do the same in an effort to have a helpful and meaningful dialogue with those in the industry. We'll also use the blog to make you aware of issues in the industry worth noting.
Here's our first question for you: Do you think that accelerated depreciation (or "bonus") depreciation will or should be extended into 2009 if either McCaiin or Obama is elected to office? Will it have any impact on the industry?
2 comments:
SHL, Congratulations on the new website and blog.
I'm posting after the election, so we know Obama is the President-Elect. I am in favor of bonus depreciation as a means to help spur economic growth. While aircraft manufacturers still, for the most part, have backlogs for new aircraft, bonus depreciation is a good incentive for companies to invest in aircraft upgrades. This investment leads to job creation. Whether bonus depreciation will be extended remains to be seen if and when Congress considers further economic stimulus legislation.
Today, President Obama signed the $787 billion American Recovery and Reinvestment Act into law. That extends bonus depreciation. With cancellations and delays of aircraft, this might provide a great opportunity for buyers who use aircraft for business purposes to take delivery in 2009 and benefit from the accelerated/bonus depreciation.
-Mike Nichols
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