After finding out that spending trillions of dollars doesn’t buy your way out of a recession, our government has decided to go try something “new”, tax breaks for small business.  WOW! What a novel idea!, give the money back to the people that actually produce something.  Of course this comes with the typical politician wanting us to bow down and pay homage for coming up with such a wonderful idea. 

Well, no matter how small this tax break is, it is still something.  What makes this tax break good is that it has an effect on aviation.  The “Small Business
Jobs Bill” just passed by Congress and signed by the President will allow for increased expenditures for both new and used aircraft.  The current law classifies a small business as one that spends less then $1,050,000 in capital expenses and can expense up to $250,000.  The new law will allow that amount to increase to $2,500,000 and doubles the expenditure to $500,000.  The Bonus Depreciation will also return for both 2010 and 2011.  For a complete review of the benefits of this tax bill, go to www.advocatetax.com.  One final thought, when you see your politician, don’t forget to thank him for giving you your money back.