Modifying the tax benefit stemming from the depreciation schedule for corporate jets has been the focus of significant debate in Washington D.C. for the past several years. NJASAP is a staunch proponent of shorter depreciation schedules that provide incentives for large equipment purchases like jet aircraft because the faster pace reduces the short-term tax liability, allowing investors to keep more cash on hand. Business jets have been the subject of tax depreciations advantageous to buyers since 1987; however, there is a movement afoot that would lengthen the schedule to seven years, matching that of airliners.
NJASAP believes the tax depreciation of business aircraft should be treated no differently than investments in new equipment made by other types of businesses – nor should they be. Whether used to purchase a new crane by a construction company or a new computer for an accounting firm, these policies, which have been in place for more than three decades, allow U.S. businesses to invest in growth strategies to remain viable in the highly competitive global marketplace. Just as we should not discourage these types of purchases, lawmakers and talking heads in Washington should immediately curtail any effort to restrict investments in business aviation.