NBAA President Details Items to Strengthen Aviation to Congress
The National Business Aviation Association (NBAA) President and CEO Ed Bolen recently detailed for Congress a policy roadmap for strengthening the general aviation sector in the U.S. and around the world, today and in the years to come.
In testimony before the U.S. House Committee on Transportation and Infrastructure Aviation Subcommittee, he urged lawmakers to facilitate access for emerging technologies, including advanced air mobility, in order to maintain America’s leadership in global aviation; partner with the industry to protect the privacy of flight and advance aviation sustainability; and help address workforce challenges as Congress prepares to tackle a five-year Federal Aviation Administration (FAA) reauthorization bill next year.
According to NBAA, Bolen commended Congress for passing several laws during the COVID-19 pandemic that enabled business aviation to continue to support 5,000 communities across the U.S. with 1.2 million jobs and $247 billion in annual economic output.
“Congressional action in a crisis moment helped put general aviation on a flight path for recovery – there is strong demand for new employees, and our industry is serving small towns and communities across the country,” Bolen said. “Aviation workers are back on the job, and in some cases, we are even seeing a return of worker shortages among pilots, maintenance workers and other aviation professionals.”
Among NBAA’s recommendations for Congress:
Build on the successful implementation of the next-generation air traffic control (ATC) system and maintain congressional oversight, along with the current tax structure to support the Aviation Funding Stability Act and Airport and Airway Trust Fund (AATF).
Ensure that the FAA takes steps to protect business aviation from 5G telecommunications interference and the privacy of general aviation travelers, who are easily tracked by “cyber-stalkers.”
Enact the blender’s tax credit as proposed in the Sustainable Skies Act (H.R. 3440) to increase the production, availability and use of sustainable aviation fuel, which can reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel.
Support transformative technologies so that aircraft can be powered by electric, hybrid and hydrogen propulsion, with legislation such as the Advanced Aviation Infrastructure Modernization Act (H.R. 6270). This act would expand advanced air mobility (AAM) infrastructure, and by clarifying tax rules to allow electric aircraft charging stations to qualify for an existing tax credit applicable to ground vehicles.
Enact policy changes and recruitment efforts to help the industry meet its need for 600,000 new pilots, technicians and other professionals in the next 20 years.
Reflecting on the importance of the FAA Reauthorization for the many technology advancements coming out of business aviation today, Bolen said: “Our industry looks forward to continuing engagement with the committee and Congress as we develop policy solutions that safely embrace new aviation technologies and maintain the United States as the world leader in aerospace.” (Source: NBAA)
Canada Implements Luxury Tax Affecting Aircraft
The Canadian government recently announced it planned to move forward with the implementation of the Luxury Tax (included in Bill C-19) “for all subject items, including aircraft*” Sept. 1, 2022. The tax will be enforced though on vehicles with written sales agreements of Jan. 1, 2022, and after.
The Canadian Business Aviation Association (CBAA), which represents more than 400 companies and organizations, responded in part by saying, “The recent announcement by the Government of Canada to move forward on the implementation of the so called ‘luxury tax’ for Sept. 1, 2022, is of great concern for Canada’s beleaguered aviation sector and its employees. It will have serious implications for business aviation in particular, at a time when the drivers of our economic recovery and growth are facing challenges that are without precedent in a generation. We urge this government to return to the table and, at the very least, consult with our sector on reasonable timelines for tax policy changes that should not be punitive but indeed supportive for all Canadians.”
For the full press release go to: https://www.canada.ca/en/department-finance/news/2022/07
*Luxury Tax will be excluded on certain aircraft for export.