General aviation groups strongly endorsed passage of the sweeping funding and tax package that would provide the FAA with a $16.3 billion budget in the current fiscal year and extend key tax breaks such as bonus depreciation. But the groups added they plan to continue to push for a permanent extension of bonus depreciation.

On December 18, the House passed the $2 trillion package by a 316-113 vote; the Senate then passed the measure by a vote of 65 to 33. President Obama signed the bill into law the same day. The package included permanent extensions of the research and development tax credit, as well as the increase in Section 179 expensing for small and medium size businesses. It extends bonus depreciation for five years, phasing down in the latter part of that term.

“While we are pleased that Congress has agreed to extend bonus depreciation with a five-year phase out, we continue to advocate for permanent bonus or permanent full expensing, which would promote greater investments in general aviation aircraft,” said Scott O’Brien, NBAA senior manager for finance and tax policy.

NATA president and CEO Hendricks agreed, saying, “The tax package is an important prelude to comprehensive tax reform...The ultimate goal should be the immediate and full write-off of all business investment expenses.”

NATA noted the package contains a number of other tax and spending provisions supported by the community, such as full funding for the contract tower program and $7 million for general aviation fuels research. GAMA praised the full funding for FAA certification activities and the directive for FAA to expand use of organization designation authorization.