[Congressional Record Volume 155, Number 162 (Tuesday, November 3, 2009)]
[Senate]
[Pages S11051-S11052]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BROWNBACK (for himself and Mr. Roberts):
  S. 2723. A bill to amend the Internal Revenue Code of 1986 to provide 
a special depreciation allowance and recovery period for noncommercial 
aircraft property; to the Committee on Finance.
  Mr. BROWNBACK. Mr. President, Today I introduce an important piece of 
legislation that would provide a real boost to our economy at little, 
if any, expense to taxpayers. The bill I introduce would offer bonus 
depreciation on the purchase of noncommercial general aviation aircraft 
in 2010 or 2011.
  America is the world leader in general aviation manufacturing, a 
sector in which we truly have no peer. General aviation is an essential 
and critical part of our Nation's transportation infrastructure for 
many individuals and businesses, for whom time is of the absolute 
essence. Further, general aviation is a vital component of our economy, 
supporting over 1.2 million jobs and providing $150 billion in economic 
activity. It is one of the few remaining American manufacturing 
industries that still provide a significant trade surplus for the U.S., 
generating over $5.9 billion in exports of domestically manufactured 
planes in 2008 alone.
  However, this sector is particularly susceptible to economic 
downturns. Many individuals and companies will delay or even cancel the 
purchase of an aircraft in a bad economy even though they may have a 
present need for a new aircraft.
  We see this reflected in our general aviation sector where during the 
first half of 2009, we witnessed declines of 58 percent in piston 
engine aircraft sales; 37 percent in jet engine aircraft sales; and 13 
percent in turboprop aircraft sales. At the same time, use of business 
jets has declined 12 percent over the past year, and the number of used 
aircraft on the global market stands at a historic high.
  Cumulatively, general aviation companies have had to lay off 19,000 
American workers, and this includes 11,500 alone in Wichita, KS. Over 
the past year, total employment of general aviation companies has 
declined by almost 14 percent. This is even more alarming when you 
consider that the U.S. Department of Labor aerospace workforce 
multiplier is three. For every general aviation worker on an aircraft, 
there are three jobs outside the immediate company that are created, 
whether manufacturing, engineering, supply or support. So, for this 
many general aviation workers to have been laid-off has much further 
reaching consequences in terms of the number of people and families 
that are adversely impacted.
  The legislation that I propose today is a proven approach to spur 
general aviation aircraft orders with minimal affect on the Federal 
budget. My approach to this issue is an approach that has resulted in 
real jobs. During the 2003-2004 economic downturn, I worked to have 
general aviation bonus depreciation included in legislation that 
emerged from the Senate Finance Committee. That provision is credited 
with spurring over $2 billion in new general aviation aircraft sales, 
and it is credited with saving or sustaining thousands of jobs. Also, 
another consideration that makes this approach a real

[[Page S11052]]

no-brainer is that, in the past, the Joint Tax Committee reported the 
provision to have a negligible impact on Federal tax revenues over the 
10-year budget window. This is because, while tax revenue is reduced in 
the near-term, revenues rebound to higher levels in the second half of 
the 10-year window as no deprecation is being taken in the later years 
of the period.
  Acting on this proposal now is important. The Blue Chip Economic 
Indicators consensus forecast expect unemployment to rise above 10 
percent and to remain above the 3rd quarter 2009 level of 9.6 percent 
at least though the end of 2010, so we are looking at uncertain 
economic growth and high unemployment for several more quarters. A 
proposal like the one that I am putting forward is likely to encourage 
individuals and businesses to go ahead and act now on placing orders 
rather than waiting. For the Congress to act on this bonus depreciation 
legislation now would have a positive effect on getting our economic 
engines moving again and can play a part in helping facilitate a 
broader economic recovery, as it would hopefully again help to save and 
sustain jobs as well as returning jobs to those who have lost them as a 
result of the recession.
                                 ______