On July 2, 2025, President Donald J. Trump signed into law the One Big Beautiful Bill Act (H.R.1), reinstating 100% bonus depreciation on capital equipment, including business and general aviation aircraft. This legislation is generating significant interest across the private aviation industry, offering unprecedented tax benefits for new and pre-owned aircraft buyers.
Bonus depreciation allows aircraft owners to accelerate depreciation deductions, realizing the full tax benefit immediately in the year of purchase. While it doesn’t increase the total amount of depreciation available, it enables quicker cost recovery, significantly enhancing financial planning and cash flow.
Under Internal Revenue Code §168(k), buyers of new or pre-owned aircraft can deduct the entire purchase price from their taxable income during the first year of service—provided the aircraft is primarily used for business (at least 50%). For example, a $10 million jet purchased in 2025 can lead to a full $10 million deduction, potentially saving millions in taxes and substantially offsetting initial acquisition and financing costs.
To take advantage of these benefits:
- Aircraft usage must exceed 50% for qualified business activities.
- Thorough documentation of trips, business purposes, and use logs is mandatory.
- Personal and entertainment flights are excluded from qualifying deductions.
Failing to meet these criteria could result in depreciation recapture, creating financial and legal challenges. Working with experienced aircraft management firms like Wing Aviation can ensure compliance, proper documentation, and optimal business-use strategies, including placing the aircraft under charter (Part 135 operations) to enhance business utilization.
Even when financing an aircraft, owners can deduct the entire purchase amount. For instance, if financing 80% of a $10 million jet, the full $10 million deduction applies, resulting in substantial first-year tax savings potentially exceeding initial down payments.
Demand for private jets is anticipated to rise significantly. Engaging with Wing Aviation provides access to specialized tax advice, expert legal counsel, and a dedicated acquisition team, ensuring efficient sourcing and smooth transaction processes. While permanent now, legislative priorities can shift—making immediate action crucial to locking in these substantial tax benefits.
Ready to explore your options? Contact Wing Aviation today to maximize your financial opportunities and elevate your aviation experience.
