MARPA Reaches Out to Congress

MARPA sent out over 500 letters today – one to each member of the U.S. House of representatives and the U.S. Senate.

The Association’s letters were the basis for the template that we published for the members yesterday.

In our letter, we explained that the aviation supply chain typically suffers with the air carriers, but continues to suffer after the air carriers are operating.  We asked Congress to provide aid to the aviation supply chain, as well.  We are asked for these four items:

• Authority for the aviation supply chain to make use of disaster assistance loans;
  • Rationale: these low-interest loans provide a mechanism for aviation supply chain companies to make payroll and pay fixed expenses in order to survive until payments are being made again.
• Grants to be used for payroll during the period when there is no income;
  • Rationale: Endorsed by Senators Rubio and Collins, payroll grants allow businesses to pay their employees, which helps to prevent a domino effect caused by employees who no longer have the money to pay for essentials like rent/mortgage and food
• Tax credits to all purchasers for 26% of the purchase price of U.S. FAA-approved aircraft parts (known as “PMA parts” this is a product that is uniquely produced in the United States);
  • Rationale: This sort of tax credit would give a tax benefit for expenditures that (1) are necessary for safety and regulatory compliance and (2) help keep the economy rolling, and (3) are spent on a product that is uniquely American: FAA-approved aircraft parts.  It should be available to any business that purchases such parts.  By offering a tax credit for this sort of safety-related expenditure, Congress can be sure that the money is used in a way that is positive for the American economy, without worrying that the funds are being spent on expenditures that do not advance Congress’ intent.
• Expansion of the research tax credit to include all domestic PMA research activities, by adding a subsection (5) to 26 U.S.C. 41(d) that reads “(5) Activities for which credit allowed. Notwithstanding any of the limits of paragraph (d)(4) of this section, the term “qualified research” shall include all activities conducted in support of research, development and application for Parts Manufacturer Approval submitted to the Federal Aviation Administration.”
  • Rationale: At present, this sort of research is not subject to the Research Tax Credit; but this sort of research leads to both innovations in aviation parts and opportunities for competition in the parts arena.  Such opportunities foster value for the air carriers, helping to ensure that aviation can get back on its feet again, and helping to ensure that aviation suppliers maintain competitive pricing without taking unfair advantage and price gouging.

Want to send your own message?  MARPA has developed resources to help you communicate with your members of Congress, including:

• General instructions for communicating your concerns to Congress
• Instructions for identifying and contacting your members of Congress
• An email and mail template explaining the situation and asking for assistance to be targeted to the aviation supply chain

Let them know what you are thinking and what your business needs to survive!