The Bonus Depreciation Extension Act of 2005 (HR 364 IH) was recently introduced in the U.S. House of Representatives by Congressman Wilson from South Carolina. HR 364 IH would reinstate the 50% bonus depreciation that expired January 1, 2005 and extend it for another two years to January 1, 2007. HR 364 IH has been referred to the House Ways and Means committee for further consideration.
If passed, this legislation would provide further fuel for the continuing growth of new aircraft deliveries, as well as capital upgrades and improvements to existing aircraft. However, last year’s legislation to extend the “placed in service” deadline for the expired bonus depreciation to January 1, 2006 was a tough sell. Although it did finally pass, it will be interesting to see whether HR 364 IH will have the political support needed to reinstate the 50% bonus depreciation.
