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:

Proposed legislation aims to reinstate 100% bonus depreciation for aircraft acquisitions, retroactively from January 19, reversing the current phase-down and extending the benefit through approximately 2029-2030.
This potential reinstatement offers substantial cash flow boosts and tax advantages for all aircraft owners, from piston to corporate jets, fostering fleet modernization and economic stimulus in the aviation sector.
Beyond the current extension proposals, there is significant discussion and political momentum, including pledges, to make 100% bonus depreciation a permanent tax incentive, which would provide long-term certainty for aviation investment planning.
Aircraft owners and buyers should closely monitor these legislative developments, as the timing and final details of these provisions will significantly impact the financial outcomes of future acquisitions.

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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.