Story ID: 
Provisions of Reconciliation Bill Welcomed by NBAA 
By: Matt Thurber
Caption: More than 50 aviation organizations support items that would benefit aviation
Word Count: 343
The U.S. Senate yesterday passed H.R.1, a revised budget reconciliation bill that includes “several provisions to promote the growth, safety, and sustainability of U.S. aviation,” according to NBAA. An earlier version of the bill passed the House of Representatives on May 22, but the revised bill goes back to the House for a final vote by Friday.
The Senate version includes aviation items from the House version, which NBAA and more than 50 other aviation organizations support. Included is $12.8 billion to help pay for “transformation of the nation’s air traffic control technologies, facilities, and other infrastructure.” Another provision would permanently reinstate 100% bonus depreciation for new and preowned aircraft, the association noted.
A four-year extension of the Section 45Z Clean Fuel Production Credit is included, but the value of the credit drops to $1 from $1.75 per gallon. “While the credit is among the initiatives that spurred the doubling of U.S. SAF production from December 2024 to February 2025, the reduction in credit value could make it difficult to meet increasing demand,” NBAA explained.
The $12.8 billion for ATC modernization roughly breaks down into $2.16 billion for tower and terminal radar approach control facility replacement; $3 billion for radar systems replacement; $4.75 billion for telecommunications infrastructure and systems replacement; $500 million for runway safety projects, airport surface surveillance projects, and carrying out section 347 of the FAA Reauthorization Act of 2024 (zero tolerance for near collisions, runway incursions, and surface safety risks); $550 million for unstaffed infrastructure sustainment and replacement; $300 million for NextGen programs; $260 million for the Don Young Alaska Aviation Safety Initiative; and $1 billion for air traffic controller recruitment, retention, training, and advanced training technologies.
“We thank the Senate for recognizing with this initial funding that a safe and efficient national airspace requires a robust, resilient ATC system that bolsters our nation’s global aviation leadership,” said NBAA president and CEO Ed Bolen. “These provisions represent an important investment in an essential American industry, and the citizens, companies, and communities that depend on it. NBAA looks forward to their continued progress.”