President Donald Trump signs the One Big Beautiful Bill Act on the South Lawn of the White House. [Credit: The White House]
Key Takeaways:
President Donald Trump signed a bill reinstating 100% bonus depreciation for qualified business aircraft, effective January 19, 2025.
This provision allows businesses to fully deduct the acquisition cost of new or pre-owned aircraft in the year they are placed in service, provided the aircraft is used at least 50% for business purposes.
The permanent measure reverses prior phaseouts and is expected to boost aircraft sales and support the aviation industry by helping businesses reduce tax liability and maintain liquidity.
Businesses are advised to strategically assess the use of bonus depreciation, considering its potential effects on financing covenants and the company's balance sheet.
President Donald Trump signed into law a sweeping tax-and-spending bill on July 4 that reinstates 100% bonus depreciation for qualified property, including business aircraft.
The provision, effective for property placed in service on or after January 19, 2025, restores full expensing for both new and pre-owned aircraft used in business under IRS guidelines.
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Bringing over 10 years of aviation experience and multiple years in finance, Keller Laseter combines both of those skills to be FLYING Finance’s CCO. His leading knowledge in all categories and classes of fixed wing aircraft helps guide you through the finance process with ease and will leave you knowing you’re in great hands. Keller holds type ratings in the Beechjet 400A/XP/NXT, Embraer E-175 and has many hours in King Airs, along with other high-performance aircraft. Throughout his career, he’s had the opportunity to enjoy the world of aviation and many different operations. As an ATP, CFI, and CFII, aviation is in his blood.
