NATA comments on protecting Americans from Tax Hikes Act of 2015
WASHINGTON, D.C. (WDAM) -
This is a news release from the National Air Transportation Association
Congressional leaders released the details of an historic tax agreement that includes two important changes to business investment incentives long advocated by NATA. The association serves as part of a coalition of leading business trade associations, including the U.S. Chamber of Commerce and the National Association of Manufacturers, that for several years have been pursuing these pro-investment changes. The agreement will be considered later this week by both the House and Senate.
The agreement includes a five-year extension of bonus depreciation, from 2015 through 2019. Under the proposal, bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016 and 2017 and phases down to 40 percent in 2018 and 30 percent in 2019.
The proposal also permanently increases the maximum amount and phase-out threshold in 2015 and 2016 for Section 179 expensing to the levels that were in effect from 2010 through 2014 of $500,000 and $2 million respectively. The provision also modifies the expensing limitation by indexing both the $500,000 and $2 million limits for inflation beginning in 2016.
The following is a statement by National Air Transportation Association President and CEO Thomas L. Hendricks:
"NATA thanks the Congressional leadership and the House and Senate tax-writing committees for recognizing the importance of pro-investment tax policies to keep our economy moving forward. A five-year extension of bonus depreciation finally provides aviation businesses with the investment certainty needed to make long-term capital investments. Additionally, many NATA members are small businesses and we deeply appreciate Congress’ recognition of their importance to the economy by making permanent the increases NATA also sought in Section 179 expensing. While NATA was appreciative of the previous year-to-year extensions, the full stimulative effects of these provisions were weakened by renewal late in calendar years.
This tax package is an important prelude to comprehensive tax reform and NATA will continue to work with our partners in the business community toward that goal. As we told the tax-writing committees earlier this year, while accelerated depreciation is helpful to investment and the overall economy, the ultimate goal should be the immediate and full write-off of all business investment expenses. Such a policy would unleash the full economic potential of our sector and cement this nation’s continued global leadership of the aviation industry. We look forward to action on this tax package and our continued work with the tax-writing committees as they look to develop comprehensive tax reform legislation.”