Last Thursday, Congressman Tiahrt proposed a bill aimed at using bonus depreciation to help stimulate a suffering economy in Kansas. The bill would further extend for two years, the increased allowable bonus depreciation amounts under the American Recovery and Reinvestment Act of 2009. This would be aimed at helping an ailing economy and aviation industry in the state.
Much of Wichita’s economic stability had been tied to job creation and sales in the growing aviation sector. Less than two years ago, there were over 9,000 unfilled jobs in demand and sales were at an all-time high. Recently however, sales have plummeted, and at least 13,000 jobs have been slashed in the last year alone. Some people fear that the trend may be so negative, that Wichita may begin to resemble the situation Detroit is in.
Most however, argue that the circumstance of Wichita is not that of Detroit’s and feel there is hope for a rebound. Still, both Tiahrt and the General Aviation Manufacturers Association strongly urge proactive steps, and feel that extended bonus depreciation would help. Also, under Tiahrt’s bill titled the General Aviation Jobs Act, the recovery period for new non-commercial aircraft purchased would be reduced to 3 years from 5, allowing for a more accelerated recovery of taxes. This would in turn alleviate some of the financial burden of making such a purchase. Hopes are that as a result, more planes will be ordered and purchased leading to job creation.
For more information regarding the general concepts of bonus depreciation, feel free to check out our other bonus depreciation posts here. Also, we would like to hear your input on the subject. Do you think that extended bonus depreciation would serve as a legitimate incentive? Have prior increases in bonus depreciation helped you business in the past? Are there any other forms of tax legislation that you feel would help the economy? Let us know, in the comments. Also, if there are any questions you have, feel free to ask below or on the questions page.
More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.
photo credit: kansassampler.org