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Aviation Benefits Included in New Tax Proposal

The bipartisan, bicameral bill could help lower depreciation and interest costs.

The tax bill with aviation benefits is considered a foundation for big changes expected in 2025. [John Gallagher]
Gemini Sparkle

Key Takeaways:

  • A new bipartisan tax framework proposes to restore 100% bonus depreciation, allowing aircraft buyers to deduct the full cost of assets placed in service by January 1, 2026, in the first year.
  • The proposal also includes more generous deductions for interest expenses by temporarily extending the EBITDA limitation, aiming to reduce borrowing costs for companies.
  • These provisions are designed to significantly boost profits, lower operational costs for aircraft buyers, and support the general and business aviation market, with the bill currently progressing through the House.
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A three-year tax framework unveiled this week in both chambers of Congress includes lucrative provisions that could help boost profits and lower operational costs for aircraft buyers.

The proposal, the Tax Relief for American Families and Workers Act of 2024, has bipartisan support. In exchange for Democrat-backed language to bolster the Child Tax Credit, it restores tax deductions—supported by Republicans—that were eliminated in the 2017 Tax Cuts and Jobs Act, the signature tax package passed under the Donald Trump administration, to help balance revenue lost as a result of cutting the U.S. corporate tax rate from 35 percent to 21 percent.

John Gallagher

Based in Washington, D.C., John specializes in regulation and legislation affecting all sectors of transportation. He has covered rail, trucking, maritime, and aviation since 1993 for a variety of publications based in the U.S. and the U.K. John began business reporting in 1993 at Broadcasting & Cable magazine. He graduated from Florida State University, majoring in English and business.

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