Bizav Groups Cheer House OK of Small Business Tax Bill

The House cleared a bill to permanently extend the small business expensing provision that expired at the end of 2014. The provision, H.R.636, America’s Small Business Tax Relief Act of 2015, would permit small businesses to expense up to $500,000 in investments rather than deducting them. The House approved the measure 272-142 in a largely partisan vote, although more than two dozen Democrats voted in favor of it. Its fate in the Senate, however, remains unclear as Congress contemplates larger tax reform. 

Business aviation groups strongly support the measure. “Small companies represent the core of aviation businesses and the legislation approved by the House today will encourage these companies to make capital investments,” said NATA president and CEO Tom Hendricks. NBAA president and CEO Ed Bolen agreed, saying the measure would "stimulate growth for the many small businesses that help general aviation generate $219 billion in annual U.S. economic activity."

The tax measure is one of several the associations are watching. NBAA encouraged members to contact Congress in opposition to the White House proposal to extend business aircraft depreciation schedules. At the same time, the associations hope Congress will consider making bonus depreciation permanent.