Gary Horowitz Discusses Proposed Tax Changes for Corporate Jet Owners with the Associated Press and Bloomberg Businessweek
Wiley Rein attorney Gary Horowitz was quoted in Associated Press and Bloomberg Businessweek articles commenting on President Obama's proposal to change the tax laws for corporate jet owners. The proposal would require companies that purchase business aircraft to depreciate the aircraft over a longer period of time than what is currently allowed, which is generally five years. Mr. Horowitz, who specializes in aviation and tax law, told the AP that "the tax increase probably wouldn't be the deciding factor in whether a corporation buys an airplane. But it could affect when they buy it and how much they are willing to spend." He added that "this is an expense that makes it incrementally more expensive to own an aircraft."
Just last year, the tax law was changed so that companies purchasing new equipment-including business aircraft-can deduct the full cost of the purchase in the first year of ownership. "It seems to me that the tax policy here is all over the map," Mr. Horowitz was quoted as saying in the Bloomberg article. He was joined by other attorneys in concluding that "the proposed change would affect business decisions about when to buy aircraft. The change could cause companies to delay purchases or buy smaller planes than they would have purchased otherwise."
The Associated Press story was republished by numerous publications, including The Atlanta Journal-Constitution, The Boston Globe, Forbes, Fox News, The Miami Herald, The San Diego Union Tribune and Salon.