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Bonus depreciation

President Obama has proposed giving small businesses a 100-percent bonus depreciation tax incentive for 2011 that would increase the currently proposed 50-percent bonus depreciation deduction, retroactive to September 8, 2010. This deduction would apply to purchases of business equipment such as vehicles, computers and, of course, business jets. Business aircraft manufacturers are hailing the proposal because it would give businesses added incentive to buy aircraft now. Congress still must pass the measure. Legislation currently pending in the Senate would reinstate the 50-percent depreciation bonus that was in effect in 2008 and 2009 through the end of 2010. Supporters are hopeful that the 100-percent bonus depreciation incentive can be added to this bill. .

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