100% Bonus Depreciation: What Aircraft Buyers Need to Know
What’s New?
The One Beautiful Bill Act has reinstated 100% bonus depreciation for qualified business aircraft purchases, allowing buyers to fully deduct the cost of an aircraft in the year it’s placed into service. This tax incentive is now permanently restored for both new and used aircraft.
Why It Matters
Accelerated cash flow: Rather than depreciating an aircraft over many years, owners can claim the full deduction in year one—a powerful benefit for managing liquidity.
Broad applicability: Upgrades, avionics enhancements, cabin refurbishments, and other qualifying improvements can also be eligible for this deduction.
Section 179 boost: The cap for immediate deductions under Section 179 has been raised to $2.5 million, giving smaller operators additional flexibility. Be clear, be confident and don’t overthink it. The beauty of your story is that it’s going to continue to evolve and your site can evolve with it. Your goal should be to make it feel right for right now. Later will take care of itself. It always does.
Timing Is Critical
To take advantage of the 2025 tax year, buyers must:
Complete acquisition and delivery by December 31
Ensure the aircraft is used 50% or more for business purposes
Given the time required for inspections, contracting, financing, and modifications, starting the process well before year-end—ideally by September—is strongly advised.
How Aircraft Management Fits In
Partnering with our management firm can enhance your return on ownership:
Cost efficiency: Leverage fleet-scale savings in insurance, operations, maintenance, and fuel
Operational excellence: Benefit from experienced crews, dispatch reliability, and 24/7 support
Strategic oversight: Customize management solutions—whether integrating with a flight department or adding charter revenue to offset costs