Pushed by President Bush for legislation intended to stimulate the nation’s economy, Congress has taken action on two bills that may affect the purchase of new aircraft by boosting depreciation deductions. While the bills use the term “qualified property” as eligible for depreciation deductions, new aircraft could possibly fit that definition.
At press time, H.R.3090, the Economic Security and Recovery Act of 2001, sponsored by Rep. William Thomas (R-Calif.), would provide for a special depreciation allowance for certain property acquired after Sept. 10, 2001, and before Sept. 11, 2003. On October 12, the House Ways and Means Committee voted its approval of the $100 billion total package and moved the bill forward.
Under the “business provisions” of the bill the language reads:
“(1) Additional allowance–In the case of any qualified property:
(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 30 percent of the adjusted basis of the qualified property, and
