The Entegra Release 9 suite represents a significant upgrade in utility, safety and value—whether you are upgrading your existing Cirrus or looking to purchase a late-model G3 and add the R9 suite—and Financing and Tax benefits make it an even more attractive opportunity.

Financing - Avidyne has developed working relationships with a number of financing organizations that offer you a gateway to numerous lenders who finance aircraft.  In fact, we can guide you through the financing process and help you submit the required documentation for your financing, or we can simply offer you a financing referral. We are there to help in any way that we can, just tell us what you need.

If you are looking for additional options for Financing your avionics and/or aircraft purchase, feel free to contact Frank Singleton at 781-402-7426 or by email at: fsingleton@avidyne.com.  

Tax Incentives - There are two VERY attractive Incentives in place during 2009 for customers purchasing Avidyne equipment.   These Programs are due to expire at the end of 2009.  As always, customers should consult their tax advisors to be sure of all parameters for their particular situation.   

The Programs are:  

a) “Section 179 Deduction” - Under this Program, businesses can deduct 100% of the cost of qualifying asset purchases, up to a total of $250,000.00.  Yes, 100% can be written off … and airplanes used more than 50% for business are considered qualifying assets.  

b) “Bonus Depreciation” -  When the business surpasses $250,000 in asset purchases, the 100% deduction no longer applies.  For capital purchases in excess of $250K up to $800K, a business can claim “bonus depreciation”. The bonus depreciation allows you to write off one-half the cost of the asset in the first year of the asset’s life, and  the remaining half is depreciated over the item’s useful life.   

Over-arching principles for both Incentive Programs are:  

I. Definition of a capital asset in an avionics upgrade transaction:  

Equipment that extends the life or adds value/functionality to the aircraft is a capital asset (as opposed to equipment that constitutes a repair/restored functionality).  Installation cost is included in the value of a capital asset, as that cost is a necessary part of making the asset functional.  See examples below.  

II. Use of aircraft: These programs apply ONLY to equipment installed in aircraft used for business purposes; generally meaning  > 50% business vs. personal use

III. Treatment for equipment traded in:  

Each customer’s tax situation is unique, so we should always be sure to contact your own tax advisor. What is important to know is that while the trade-in credit may reduce your tax “basis” in the new system, you may also avoid any tax on the gain resulting from the favorable trade-in allowance on the old item.  Thus, the real effect is the write off on the net cost of the new system plus avoidance of a tax on the trade-in (businesses generally pay a tax on the sale of business assets for a gain).  Again, we recommend that you consult with your own tax advisors.  

In the attached Section 179 example,  you can see that a net $77K cash investment for an R9 Upgrade could actually result in a net cash out of pocket for of only $45,500

Again, this is just an example and we encourage you to consult with your Tax Advisor.