The budget reconciliation bill that passed in the U.S. House of Representatives late last night contained “multiple initiatives supporting the growth, safety, and sustainability of the nation’s aviation industry and infrastructure,” according to NBAA. The bill will next move to the Senate for consideration.
Included in the bill is $12.5 billion for airport and air traffic control projects that will replace aging radar systems, control towers, and terminal radar approach control facilities and fund controller recruitment and training. The legislation would reinstate 100% immediate expensing on factory-new and preowned aircraft purchases, reversing the phase-down of claimable depreciation to zero in 2027.
The Section 45Z Clean Fuel Production Credit would be extended another four years under the bill, to continue incentivizing sustainable aviation fuel (SAF) production to 2031. “This credit is among the initiatives that contributed to the doubling of U.S. SAF production from December 2024 to February 2025,” according to NBAA.
“We commend the House for recognizing the importance of improving ATC infrastructure and strengthening the controller workforce to enhance safety and efficiency in the National Airspace System,” said NBAA president and CEO Ed Bolen. “Business aviation’s ability to serve citizens, companies, and communities is only possible because the U.S. leads the world in aviation. The strategic priorities identified in this provision will be key to preserving our global leadership in the years to come.
“As the House reconciliation bill moves to the Senate for consideration, we look forward to working with lawmakers on both sides of the aisle to advance these forward-looking provisions that bolster an essential industry, support countless workers, and promote American competitiveness,” Bolen concluded.