Pompeo notes that the five-year depreciation schedule has been in place for more than 25 years and numerous assets have five-year schedules, while others have a three-year schedule.
He acknowledges airliners have seven-year schedules, but says, “It would make little sense for an American Airlines’ Boeing 747 to have the same depreciation schedule as a farmer’s Air Tractor.”
General aviation advocates have also voiced opposition to the plan. “Their rhetoric is wrong and all it does is hurt general aviation companies and workers across this country,” says General Aviation Manufacturers Association President and CEO Pete Bunce.
“As our country pursues this critical policy objective, it is important to ensure that the proposals we consider are based on reality rather than rhetoric,” adds National Business Aviation Association President and CEO Ed Bolen. “Unfortunately, in the course of the debate over the debt, the White House has recently focused on misleading statements related to depreciation schedules for business aircraft.”
“Aircraft Owners and Pilots Association (AOPA) is very disappointed in the Obama Administration’s endless attempts to lengthen the depreciation schedule for business aircraft,” agrees AOPA President and CEO Craig Fuller. “At a time of widespread concern over job creation in this country, we feel it is short-sighted to put further financial burdens on an industry that contributes positively to our nation’s balance of trade, and one that supports highly skilled, good paying jobs.”