Pilot's Guide to Avionics 2016-2017 - 51
Who is eligible for the rebate?
This program is for U.S. registered, fixed-wing,
single-engine piston aircraft owners . Industry has
estimated that as many as 40,000 GA aircraft
owners may be reluctant to equip until just before
2020 creating resource challenges and impact on
installation and certification shops.
Why offer $500 per owner/entity?
A minimal rule-compliant system costs
approximately $2,000, plus installation costs . Equip
2020 performed a survey of aircraft owners and found
that getting costs below $2,000 would encourage
many price-sensitive owners to equip . The FAA
chose $500 as an amount that would get the price
down to that more-attractive range . This amount also
maximized the total number of rebates the agency
could distribute, based on total funding approved for
the program .
Why offer a rebate instead
of loan guarantees?
Industry representatives in the Equip 2020 GA
working group told the agency that a direct subsidy
or rebate would be preferable to a loan program . In
addition, current loan programs that the agency is aware
of are geared toward aircraft owners who are planning
more high-end installations and not just minimal
systems to ensure rule compliance . One loan program,
for instance, offers a minimum loan of $10,000 .
Why are new aircraft excluded
from this program?
This program is focused on aircraft owners who
likely have not equipped because they are sensitive
to the retrofit cost. The rebate program is designed to
encourage the most cost-sensitive owners to equip
now rather than wait until closer to the deadline . Since
new aircraft typically cost $100,000 or more, it is
doubtful that people who can afford to buy new would
be dissuaded by avionics that cost $2,000 or less .
Why is only TSO-certified equipment
eligible for this program?
Since the rebate program is aimed at this segment
of the GA community, only TSO-certified Version
2 equipment is eligible. The cost of TSO-certified
equipment is typically higher than similar equipment
that isn't certified, making it less affordable for
cost-sensitive customers . This program is geared
to ensure full aircraft compliance to the rule which
will ensure continuous access to the rule airspace
in 2020 . The FAA maintains a list of the eligible
equipment at: www .faa .gov/nextgen/equipadsb/
equipment . This list is updated approximately
monthly . However, avionics manufacturers will have
the latest status of TSO certification for their ADS-B
Version 2 systems .
Why aren't software upgrades
eligible for this program?
Software upgrades are typically much less
expensive than new equipment . Since the rebate
program is aimed at cost-sensitive owners who need
to equip to meet the deadline, eligibility is limited to
the purchase of new ADS-B equipment .
Why is the FAA only offering 20,000
rebate slots - why not offer more?
The FAA tried to offer as many rebates as possible
within the funding total approved for this program
while keeping the individual savings significant
enough to be real incentives . The agency also
believes that having 20,000 aircraft equipped on top
of the existing and planned installs would be optimal .
How long will the program run?
The program will run for approximately one year or
until the funds for all 20,000 rebates are exhausted,
whichever comes first.
Why is the FAA requiring that aircraft
must be flown in the airspace defined in
14 CFR 91.225(d)(1) through (3) for a
minimum of 30 minutes?
This type of flight is essential to validate the
new avionics were installed properly and are rule
compliant . Since the target audience is people who
generally fly in the designated airspace, they won't
find it a hardship to perform the required validation
How does the FAA justify having a program
like this now, after many GA aircraft have
These factors are driving the agency's decision to
Continued on following page...
- 51 -