{"id":30555,"date":"2017-12-25T11:45:25","date_gmt":"2017-12-25T16:45:25","guid":{"rendered":"https:\/\/www.aircharter.com\/?p=30555"},"modified":"2024-02-06T07:37:13","modified_gmt":"2024-02-06T12:37:13","slug":"aviation-related-tax-reform-issues","status":"publish","type":"post","link":"https:\/\/www.aircharter.com\/es\/aviation-related-tax-reform-issues\/","title":{"rendered":"Aviation Tax Reform Issues"},"content":{"rendered":"<h2>NBAA Members Urged to Contact Congress on Aviation Tax Reform Issues<\/h2>\n<div id=\"pageContent\">\n<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container hundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-overflow:visible;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"width:calc( 100% + 0px ) !important;max-width:calc( 100% + 0px ) !important;margin-left: calc(-0px \/ 2 );margin-right: calc(-0px \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column fusion-flex-align-self-flex-start fusion-column-no-min-height\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:0px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:0px;--awb-width-medium:100%;--awb-spacing-right-medium:0px;--awb-spacing-left-medium:0px;--awb-width-small:100%;--awb-spacing-right-small:0px;--awb-spacing-left-small:0px;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div id=\"attachment_30556\" style=\"width: 390px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.aircharter.com\/wp-content\/uploads\/2017\/12\/congress.jpg\"><img decoding=\"async\" aria-describedby=\"caption-attachment-30556\" class=\"wp-image-30556 \" src=\"https:\/\/www.aircharter.com\/wp-content\/uploads\/2017\/12\/congress-1024x576.jpg\" alt=\"aviation tax reform\" width=\"380\" height=\"214\" srcset=\"https:\/\/www.aircharter.com\/wp-content\/uploads\/2017\/12\/congress-300x169.jpg 300w, https:\/\/www.aircharter.com\/wp-content\/uploads\/2017\/12\/congress-768x432.jpg 768w, https:\/\/www.aircharter.com\/wp-content\/uploads\/2017\/12\/congress-1024x576.jpg 1024w, https:\/\/www.aircharter.com\/wp-content\/uploads\/2017\/12\/congress.jpg 1920w\" sizes=\"(max-width: 380px) 100vw, 380px\" \/><\/a><p id=\"caption-attachment-30556\" class=\"wp-caption-text\">Aviation tax reform<\/p><\/div>\n<p>As the highly publicized <em><strong>aviation tax reform<\/strong><\/em> legislation moves forward in Washington, DC, NBAA continues its advocacy work, and urges association members to contact Congress on aviation-related issues included in the larger aviation tax reform bills.<\/p>\n<p>Three issues impacting business aviation are in question:<\/p>\n<ul>\n<li>Immediate expensing<\/li>\n<li>Like-kind exchanges<\/li>\n<li>Taxes applicable to aircraft management companies<\/li>\n<\/ul>\n<p>The House and the Senate have taken slightly different approaches on dealing with bonus depreciation. Both bills contain provisions regarding depreciation of business assets (including aircraft), which allow 100 percent immediate expensing, or bonus depreciation, for property used in business, if that property is placed in service after Sept. 27, 2017, and before Jan. 1, 2023.<\/p>\n<p>In the House bill, both new and pre-owned equipment qualify for immediate expensing. However, the Senate bill allows immediate expensing only for new equipment; pre-owned equipment does not qualify for bonus depreciation. Immediate expensing expires in the House bill on Jan. 1, 2023, while the Senate language allows immediate expensing to continue after 2023, with annual phase downs until 2027.<\/p>\n<p>Both bills repeal like-kind exchanges for business assets, including aircraft. Currently, like-kind exchanges allow property used in business to be exchanged for a similar business asset while deferring any taxable gain on the sale.<\/p>\n<p>\u201cThe immediate expensing provision helps make up for the like-kind exchange repeal, but there is, of course, a sunset date for immediate expensing,\u201d said Scott O\u2019Brien, NBAA\u2019s senior director of government affairs. \u201cBut the Senate language, which does not allow immediate expensing for pre-owned equipment, is a disincentive for the purchase of pre-owned business aircraft.\u201d<\/p>\n<p>NBAA has been an active member of the Like-Kind Exchange Coalition for a number of years, working alongside equipment manufacturers\/dealers and car rental companies.<\/p>\n<p>As a result of NBAA\u2019s advocacy, Sen. Jim Inhofe (R-OK) drafted and introduced an amendment preserving the like-kind exchange provision for equipment ineligible for immediate expensing. Unfortunately, the amendment, like many of the more than 240 introduced for possible inclusion in the Senate bill, was not adopted when the Senate bill passed on Dec. 2.<\/p>\n<p>A clarification on applicable taxes for aircraft management services is included in the Senate bill. This provision clarifies existing law \u2013 that is, aircraft management fees are paid for services provided, not transportation, and therefore are not subject to the commercial airline ticket tax, but rather the fuel tax. NBAA is continuing advocacy efforts on this issue.<\/p>\n<h3 class=\"bai\">What\u2019s Next?<\/h3>\n<p>The next step for the aviation tax reform legislation is the conference process, during which the House and Senate formally resolve differences between the language in the respective bills. The agreed upon bill is then sent back to both the House and Senate for another vote. Only after both chambers pass the same bill will the legislation progress to the White House for the president\u2019s signature into law.<\/p>\n<p>\u201cThe House and Senate are already negotiating to settle differences,\u201d said Gary Gasper, a tax expert at Washington Council Ernst &amp; Young and consultant to NBAA on aviation tax reform issues. \u201cGiven the political imperative for a Republican win, the final conference report is expected to be completed by the week of Dec. 18 and sent to the president before Christmas.\u201d<\/p>\n<p>\u201cNBAA will be actively working on this issue during the conference process,\u201d said O\u2019Brien. \u201cThe association supports the language in the House bill, which allows immediate expensing for new and pre-owned business assets and preserves important tax benefits for businesses.\u201d<\/p>\n<p>NBAA urges members to contact their members of Congress now to ask them to support the House language on immediate expensing. NBAA has created a Contact Congress letter for members to show their support for the House approach to immediate expensing.<\/p>\n<\/div>\n<p>Source:\u00a0nbaa<\/p>\n<div id=\"pageContent\">\n<p>&nbsp;<\/p>\n<\/div>\n<div id=\"rightSideColumn\">\n<div align=\"center\"><\/div>\n<\/div>\n<\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>NBAA Members Urged to Contact Congress on Aviation Tax Reform Issues<\/p>\n","protected":false},"author":1,"featured_media":30556,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-30555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aircharter"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Aviation Tax Reform Issues - Aircharter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aircharter.com\/aviation-related-tax-reform-issues\/\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Aviation Tax Reform Issues - 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