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:

New legislative proposals are seeking to reinstate 100 percent bonus depreciation for aircraft acquisitions, potentially retroactively from January 19 and extending through 2029-2030, reversing the current phase-down.
This reinstatement would provide significant tax incentives and cash flow benefits for all aircraft owners, making fleet modernization and new acquisitions more economically attractive.
There are ongoing discussions and political pledges to make 100 percent bonus depreciation a permanent fixture, which would offer long-term stability and predictability for aviation investment planning.

See a mistake? Contact us.

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.