New Tax Laws Will Impact General Aviation
The new federal tax law that took effect this month includes several provisions that impact the various segments of general aviation, from private owners with small airplanes to corporations with their own fleet of jets. Buyers of business aircraft now can immediately write off the entire cost of their new or pre-owned aircraft. That’s good news for GA, says AOPA President Mark Baker. “We think the inclusion of immediate expensing for used as well as new investments will effectively spur economic growth and create good jobs, especially in aviation and the aircraft industry,” Baker said.Overall tax cuts for businesses, not necessarily specific to aviation, already are driving growth in aviation, according to Ricky Sitomer, CEO of Star Jets International. “The private jet charter market is on fire right now,” Sitomer told Forbes. “The tax cuts that are fueling the market are fueling the private jet growth for Wall Street and Main Street alike.” The new tax bill also eliminates a long-standing rule that allowed deductions for certain entertainment expenses, if they were directly connected to the taxpayer’s business activities. NBAA says the change could affect many business-aircraft owners.