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 percent bonus depreciation for aircraft acquisitions, reversing the scheduled phase-down and extending the benefit retroactively from January 19 through approximately 2029/2030.
This reinstatement provides significant financial incentives for aircraft owners and buyers, allowing immediate write-offs of capital expenses, boosting cash flow, and encouraging fleet modernization and expansion.
Beyond the proposed extension, there is ongoing political momentum and discussion to make 100 percent bonus depreciation a permanent fixture, offering a more stable and predictable tax environment for long-term aviation investment.

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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.