Trump’s Bold Move: 100% Bonus Depreciation Return Could Ignite Aviation Industry

Plan announced Tuesday aims to stimulate economic growth by encouraging businesses to invest in new assets, including aircraft.

Keller Laseter

Wednesday, March 05, 2025 at 10:39 AM ET

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Edited By: tccjeremy

President Donald Trump speaks [Shutterstock/Chip Somodevilla]

Key Takeaways:

President Donald Trump has announced plans to reinstate 100% bonus depreciation, aiming to stimulate economic growth by encouraging businesses to invest in new assets, particularly aircraft.
This incentive would allow businesses to immediately deduct the entire cost of qualifying assets in the year of purchase, leading to significant tax savings and increased cash flow.
Businesses considering aircraft purchases should act proactively, as the potential reinstatement could lead to a surge in demand, potentially reducing inventory and increasing prices.
While the proposal offers substantial benefits, it requires congressional action to be signed into law, making careful planning and expert guidance crucial.

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President Donald Trump has announced plans to reinstate 100 percent bonus depreciation, a move that could revolutionize the aviation industry and provide a significant windfall for business owners. This decision, revealed during Tuesday’s address, aims to stimulate economic growth by encouraging businesses to invest in new assets, including aircraft.

For those unfamiliar with the concept, bonus depreciation allows businesses to immediately deduct a substantial portion of the cost of qualifying assets in the year they are placed in service, rather than spreading deductions over time. The Tax Cuts and Jobs Act of 2017 initially permitted 100 percent bonus depreciation, but this benefit has been gradually phasing out in recent years.