100% Bonus Depreciation May Be Here to Stay

New legislation could give aircraft buyers a boost.

Keller Laseter

Thursday, June 19, 2025 at 09:00 AM ET

Verified

Edited By:

Travis Tingle

Cirrus aircraft on a runway [Courtesy: Cirrus]

Key Takeaways:

Current law schedules a phase-down of 100 percent bonus depreciation for aircraft acquisition, which began diminishing after 2022 and is set to disappear by 2027.
New legislative proposals, including the "Big, Beautiful Bill," aim to reinstate 100 percent bonus depreciation, potentially retroactively from January 19 and extending through 2029 or 2030.
This reinstatement offers significant tax incentives, providing an immediate write-off of capital expenses that boosts cash flow and encourages aircraft acquisition, modernization, and fleet expansion.
Discussions are also ongoing regarding making 100 percent bonus depreciation a permanent policy, which would offer greater long-term stability for aviation investment planning despite potential revenue implications.

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The aviation community has reason for optimism as new developments suggest that 100 percent bonus depreciation, one of the most powerful tax incentives for aircraft acquisition, could be extended indefinitely, creating unprecedented financial planning opportunities for both jet and piston aircraft owners and buyers.

Current Law Phase-Down

Under the Tax Cuts and Jobs Act (TCJA), bonus depreciation has been on a scheduled phase-down path. After allowing businesses to deduct 100 percent of qualified asset costs in the year of acquisition through 2022, the benefit began diminishing. Bonus depreciation is set to drop to 40 percent in 2025, 20 percent in 2026, and disappear entirely by 2027.