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 Trump has proposed reinstating 100% bonus depreciation, which would allow businesses to immediately deduct the full cost of qualifying assets, such as aircraft, in the year of purchase.
This move is expected to significantly stimulate the aviation industry and offers substantial benefits to business owners, including immediate tax savings, increased cash flow, and a competitive advantage.
Businesses considering aircraft purchases are advised to act quickly before potential implementation leads to increased demand, reduced inventory, and higher prices.
The proposal requires congressional action for enactment but is anticipated to provide a strong economic stimulus, particularly for the general aviation sector.

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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.