Lawmaker Highlights Small Business Impact From Aircraft Tax-Change Proposal

March 19, 2013

The possible negative consequences from altering the tax-depreciation schedule for general aviation aircraft were recently highlighted by Rep. Todd Rokita (R-4-IN) during a hearing on the proposed fiscal year 2014 budget.

At issue was an amendment to a bill, sponsored by House Democrats, which would have altered the depreciation schedule for non-commercial aircraft purchases from five years to seven years. The White House has repeatedly called for an end to what the president terms the “corporate jet tax loophole,” asserting the adjustment would yield $3 billion in additional revenue over the next 10 years.

In the March 13 hearing in the United States House of Representatives Budget Committee, Rokita said the proposed amendment sought to “demagogue” business aircraft users, and would’ve harmed small business owners and general aviation pilots operating their aircraft on a variety of missions.

“We get some kind of satisfaction out of saying that they don't pay their fair share,” he added.

Rokita, himself a commercial pilot, then displayed a photo of Dan and Andi Montgomery, owners of Indiana fixed-base operator Montgomery Aviation, which supports general aviation operations including medical flights, airborne search-and-rescue, disaster relief, and law enforcement and agricultural support roles.

“Do they look like globe-trotting, jet millionaires to you?” he asked rhetorically. “They're small business owners.”

Watch Rep. Rokita's Comments in Support of GA Small Businesses

Rokita reiterated that any estimated gains from the depreciation schedule adjustment would be offset by the profoundly negative impact to all general aviation, including business aviation, which contributes more than $150 billion annually to the economy and employs more than 1.2 million Americans. Businesses relying on general aviation would be hit with increased capital costs, he added, as well as a drop in aggregate demand, manufacturing employment, and the number of GA service providers.

“When we demagogue the ‘jet-tax loophole’, and those people who might benefit from a simple business depreciation schedule, you might think about the real face of general aviation and the people who work in it who serve this country, and who we'd really hurt,” Rokita added. The amendment was ultimately voted down by the committee, by a vote of 17 to 22.

NBAA Senior Vice President, Government Affairs Lisa Piccione welcomed the groundswell of support from congressional lawmakers for the industry.

“Our Association is gratified by the support our industry has received from elected officials like Rep. Rokita and others in the House and Senate, who recognize that general aviation is an essential tool for citizens, companies, and communities across the country,” she said.

Article Originally published by NBAA - http://www.nbaa.org/admin/taxes/depreciation/20130319-lawmaker-highlights-small-business-impact-from-aircraft-tax-change-proposal.php

On February 24, Bill Harrelson, an EAA member from Fredericksburg, VA launched a record breaking flight in his modified Lancair IV (N6ZQ) from Montgomery Aviation at the Grissom Aeroplex (GUS).  He flew non-stop from Grissom to Honolulu, Hawaii - a 4,000 mile, 22.5 hour flight.  He then flew from Honolulu to Guam taking 17.6 hours and going 3,000 miles, then flew from Guam to Jacksonville, FL non-stop going 7,051nm in 38 hours, 29 minutes.  You can learn about the entire trek and the modified Lancair by reading the entire EAA story. http://www.eaa.org/news/2013/2013-03-05_long-distance-lancair.asp

This month's edition of AOPA Pilot Magazine has a large feature focusing on the 75th Anniversary of the Piper Cub.  Longtime friends of Dan and Andi Montgomery, Steve and Jo Alcorn took the trip of a lifetime ferrying a Piper Cub from Bedford, IN to Winter Haven, FL.  The entire trip was detailed in the magazine and is now available online:

http://www.aopa.org/members/files/pilot/2012/november/f_cub.html

The next meeting of our newly formed aviation enthusiast group - now called the Hangar Hawks will be THIS Saturday, September 29th. We are really excited to be hosting our first educational event in coordination with Indianapolis ATC and the FAASTeam. We have arranged two educational sessions for that day. The first will be "Tips and Tricks from Indianapolis ATC" and the second is 'Flying with the iPad". By attending you will receive WINGS credit as well!  Please invite your friends! The schedule will be as follows:

Tips with Tricks with ATC & Flying with the iPad sponsored by Hangar Hawks

8:30am - Registration and coffee

9:00am - Tips and Tricks from Indianapolis ATC: Learn how ATC and pilots can work more closely together to avoid the 6 o'clock news.  We'll focus on a range of topics from local airspace issues and restrictions, to how best to keep controllers happy and get where you want to go safely. You'll also get the chance to have those burning questions answered. Bring your questions!

10:15am - Break

10:30am - Flying with the iPad: Learn advanced tricks to using your iPad in both VFR and IFR conditions.  We'll learn about the latest in-cockpit weather tools available including XM and Stratus / ADS-B.  We'll also focus on the latest features and tools available in the newest releases of apps like ForeFlight.

11:45am - Hangar Hawks meeting and lunch: 

Stick around for a meeting of the newest aviation group at Indianapolis Executive Airport, the Hangar Hawks.  Hot dogs, chips, and drinks will be provided.

We hope you all can join us for this wonderful opportunity.  Please RSVP through the FAA WINGS website HERE. 

For the past two days the Texas Raiders' B-17 Bomber has been on display at Montgomery Aviation and Indianapolis Executive Airport.  This unique bomber is one of just 11 left flying in the world and is literally a flying museum and tribute to the WWII veterans who flew her.  Thanks to the hard work of the Gulf Coast Wing of the Commemorative Air Force to restore and maintain her - hundreds of Central Indiana residents had the opportunity to tour the B-17 and some even had the opportunity to take a ride.  

Video of B-17 Arrival

On Tuesday afternoon, shortly after the bomber arrived, the crew hosted a media ride organized by Montgomery Aviation.  To promote this weekend's Down Syndrome Indiana Fly-in and Open House at Indy Exec, Stephanie, a self advocate with down syndrome had the opportunity to take a flight in the B-17.  Fox59 and WISH-TV 8 also came out and captured the whole thing on film.  

See the Fox59 News Story

Check out some of the great pictures we got below and also be sure to visit the Montgomery Aviation Facebook and Twitter pages for up-to-date information and experiences. 

Montgomery family with the Texas Raiders B-17 Crew shortly after arrival

Getting ready for the media ride with Stephanie and our friends at WISH-TV 8 and Fox59

Rosalind Montgomery with Down Syndrome Indiana self-advocate, Stephanie

Stephanie having the time of her life!

Inside the cockpit of the B-17

The view is amazing!

View looking back from inside the gunner turret - isn't this amazing?!

Montgomery Business Manager, Carl Winkler, enjoying his ride in the B-17

The whole crew flying in the media ride

Come watch or even participate in the 2nd Annual Indy Air Race.  Anyone can participate with virtually any kind of aircraft.  Its Saturday, August 11, 2012 at Indianapolis Executive Airport.  For more info visit: http://theindyairrace2012.blogspot.com/.

Montgomery Aviation and Indy Exec Airport invite you to join us for the 6th Annual Down Syndrome Indiana Fly-In and Open House featuring airplane displays, candy drops, food, vendors, music, raffles, kid fun zones and best of all - FREE ADMISSION.  All proceeds benefit Down Syndrome Indiana.  The event is August 4, 2012 from 10am - 2pm.

Join us for the Grissom Pancake Breakfast Fly-In & Museum Tour on Saturday, July 21st from 7am - 2pm at the Grissom Aeroplex.

Pancake Breakfast at GUS - 7am - 11am
Cook Out Lunch at the Air Museum - 11am - 2pm

Museum Tour - $5 Admission
Breakfast or Lunch - $5 per plate

All food proceeds benefit Down Syndrome Indiana

Join Montgomery Aviation and the Frankfort Police Department on Saturday, June 30, 2012 from 4-8pm at Frankfort Municipal Airport for the annual Generate Rescue Fish Fry and Special Needs Day.

Join the Frankfort Flyers at Frankfort Municipal Airport (FKR) on Armed Forces Day - Saturday, May 19, 2012 from 7:30 - 11AM for a Pancake Breakfast.