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:

The current tax law is phasing down bonus depreciation for aircraft acquisitions, set to disappear by 2027, creating urgency for buyers.
New legislative proposals in Congress aim to restore 100 percent bonus depreciation for several years, potentially retroactively from January 19, offering significant tax advantages.
This reinstatement would provide substantial cash flow boosts and incentives for aircraft owners and buyers to modernize and expand their fleets.
There's growing discussion, including political support, to make 100 percent bonus depreciation a permanent tax policy, which would eliminate uncertainty for long-term aviation investment planning.

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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.